Genworth Financial Announces Fourth Quarter 2012 Results

           Genworth Financial Announces Fourth Quarter 2012 Results

Operating Performance Includes Benefit Of $78 Million From New Government
Guarantee In Canada

U.S. Mortgage Insurance Recovery Continues

Capital Benefit To U.S. Life Companies Of $175 Million From Second Life Block
Transaction

Transfer Of Mortgage Insurance Europe Entities To U.S. Mortgage Insurance
Completed

PR Newswire

RICHMOND, Va., Feb. 5, 2013

RICHMOND, Va., Feb. 5, 2013 /PRNewswire/ --Genworth Financial, Inc. (NYSE:
GNW) today reported results for the fourth quarter of 2012. The company
reported net income^(1) of $166 million, or $0.34 per diluted share, compared
with net income of $142 million, or $0.29 per diluted share, in the fourth
quarter of 2011. Net operating income^(2) for the fourth quarter of 2012 was
$167 million, or $0.34 per diluted share, compared with net operating income
of $124 million, or $0.25 per diluted share, in the fourth quarter of 2011.
Current quarter net income and net operating income included a favorable
adjustment of $78 million associated with the finalization of the new
Government Guarantee framework in Canada.

"U.S. mortgage insurance continued its recovery in the fourth quarter, and the
company achieved a number of its strategic goals to improve financial
flexibility highlighted by the comprehensive U.S. capital plan announced in
January," said Tom McInerney, President and CEO. "However, results in the
U.S. Life Insurance Division were mixed, and I am disappointed in our long
term care results. We are focused on executing our plans to rebuild
shareholder value."

Consolidated Net Income &
Net Operating Income
                                         Three months ended December 31
                                         (Unaudited)
                                         2012                2011
                                                   Per                 Per
                                         Total     diluted   Total     diluted
(Amounts in millions, except per                   share               share
share)
Net income                               $ 166     $  0.34   $ 142     $  0.29
Net operating income                     $ 167     $  0.34   $ 124     $  0.25
Weighted average diluted shares            493.9               492.7
Book value per share                     $ 33.62             $ 30.69
Book value per share, excluding
accumulated
    other comprehensive income (loss)    $ 23.04             $ 22.45

Net investment gains, net of tax and other adjustments, were $1 million in the
quarter and in the prior year. Total impairments, net of tax, were $14 million
in the current quarter and $70 million for the year ended December 31, 2012.
In the fourth quarter of 2011, a non-cash impairment charge of $19 million
after-tax was recorded in Corporate and Other activities to write-off all of
the goodwill associated with the reverse mortgage business.

Beginning in the fourth quarter of 2012, the company changed its financial
presentation for divisions to align with the strategy announced in October
2012. The company will continue to operate through three divisions: U.S. Life
Insurance, Global Mortgage Insurance and Corporate and Other. Under these
divisions, there are six operating business segments. The U.S. Life Insurance
Division comprises the U.S. Life Insurance segment, which includes life
insurance, long term care insurance (LTC) and fixed annuities. The Global
Mortgage Insurance Division includes the International Mortgage Insurance and
U.S. Mortgage Insurance segments. The Corporate and Other Division comprises
the International Protection segment, which includes the lifestyle protection
insurance business, the Wealth Management segment, the Runoff segment, which
primarily includes our variable annuity, variable life insurance,
institutional, corporate-owned life insurance and Medicare supplement
insurance products, and Corporate and Other activities. There were no changes
to the financial presentation for the segments.

Net operating income (loss) results are summarized in the table below:

Net Operating Income (Loss)
(Amounts in millions)                       Q4 12    Q3 12    Q4 11
U.S. Life Insurance Division:
 U.S. Life Insurance                        $ 76     $ 86     $ 94
 Total U.S. Life Insurance Division           76       86       94
Global Mortgage Insurance Division:
 International Mortgage Insurance^(3)         165      94       83
 U.S. Mortgage Insurance (U.S. MI)            (34)     (38)     (96)
 Total Global Mortgage Insurance Division     131      56       (13)
Corporate and Other Division:
 International Protection                     8        8        19
 Wealth Management                            8        10       12
 Runoff                                       8        9        15
 Corporate and Other                          (64)     (48)     (3)
 Total Corporate and Other Division           (40)     (21)     43
Total Net Operating Income                    167      121      124

Net operating income (loss) excludes net investment gains (losses), goodwill
impairments, gains (losses) on the sale of businesses and other adjustments,
net of taxes. A reconciliation of net operating income (loss) of segments and
Corporate and Other activities to net income (loss) is included at the end of
this press release.

Unless specifically noted in the discussion of results for the International
Protection and International Mortgage Insurance segments, references to
percentage changes exclude the impact of foreign exchange. Percentage changes,
which include the impact of foreign exchange, are found in a table at the end
of this press release. The impact of foreign exchange on net operating income
in the fourth quarter of 2012 was a $4 million favorable impact versus the
prior year and a $1 million favorable impact versus the prior quarter.

U.S. Life Insurance Division
U.S. Life Insurance Division net operating income was $76 million, compared
with $86 million in the prior quarter and $94 million a year ago.

U.S. Life Insurance Division
Net Operating Income
(Amounts in millions)      Q4 12  Q3 12  Q4 11
U.S. Life Insurance
      Life Insurance       $  49  $  22  $  48
      Long Term Care          7      45     28
      Fixed Annuities         20     19     18
Total U.S. Life Insurance     76     86     94
Total U.S. Life Insurance  $  76  $  86  $  94



Sales(4)
(Amounts in millions)  Q4 12  Q3 12  Q4 11
U.S. Life Insurance
 Life Insurance
  Term Life            $ —    $ 1    $ —
  Term Universal Life    11     19     31
  Universal Life         17     15     16
  Linked Benefits        3      3      2
 Long Term Care
  Individual             60     63     56
  Group                  4      6      9
 Fixed Annuities         248    487    363



Account Value
(Amounts in millions)  Q4 12     Q3 12     Q4 11
Fixed Annuities        $ 18,581  $ 18,677  $ 18,371

U.S. Life Insurance Division

Highlights

  oU.S. Life Insurance Division net operating income was $76 million,
    compared with $86 million in the prior quarter and $94 million a year ago.
  oOn October 22, 2012, the company announced changes to its life insurance
    portfolio designed to update and expand its product offerings and further
    adjust pricing to reflect the current low interest rate market environment
    and recent regulatory changes affecting reserve requirements. The company
    launched a new traditional term insurance product during the quarter which
    replaced Colony Term Universal Life. In addition, the company simplified
    its guaranteed universal life insurance portfolio and repriced GenGuard
    UL.
  oThe consolidated risk-based capital (RBC) ratio is estimated to be
    approximately 430 percent^(5), up from 420 percent at the end of the third
    quarter of 2012 from the impact of the company's second life block
    transaction, partially offset by an extraordinary cash dividend of $25
    million which was paid to the holding company, bringing the year-to-date
    dividends from the proceeds from the sale of the Medicare supplement
    business in 2011 to $175 million.
  oThe company completed its second life block transaction in the fourth
    quarter of 2012. The transaction generated approximately $175 million in
    initial after-tax capital benefits for the U.S. life insurance companies
    in the fourth quarter of 2012. The prior quarter included a GAAP net loss
    of $6 million related to this transaction, with no impact in the quarter.



Life Insurance
Life insurance net operating income was $49 million, compared with $22 million
in the prior quarter and $48 million in the prior year. Results in the quarter
included favorable mortality of $14 million versus the prior quarter driven by
lower claim frequency and severity partially offset by lower in force margins.
Mortality was also $8 million more favorable than the prior year from lower
claim frequency and from the impacts of a smaller in force block. Lower term
universal life new business expenses contributed $4 million of additional
earnings compared with the prior year. Results in the current quarter also
included a $3 million after-tax gain related to selective repurchases of notes
secured by non-recourse funding obligations. Results in the prior quarter
included a $9 million unfavorable impact from the unlocking of interest
assumptions impacting reserves and deferred acquisition costs (DAC) and a $6
million unfavorable impact from the company's second life block transaction.
Results in the prior year included a $10 million favorable impact from reserve
refinements from a system conversion and a $4 million after-tax gain related
to selective repurchases of notes secured by non-recourse funding obligations.
Sales were down $7 million versus the prior quarter and $18 million versus the
prior year reflecting the product changes made in October 2012. The company
expects further moderation of life insurance sales in the first half of 2013,
consistent with its capital management and product portfolio plans.

Long Term Care Insurance
Long term care insurance net operating income was $7 million, compared with
$45 million in the prior quarter and $28 million in the prior year. The
current quarter included a $5 million unfavorable refinement to reserves to
more fully reflect the low interest rate environment. The prior quarter
included $29 million of favorable reserve adjustments primarily from the
continuation of a multi-stage system conversion. A higher average reserve
build on new claims reduced earnings by $5 million versus the prior quarter
and $8 million versus the prior year. The prior year also included $6 million
of favorable reserve adjustments from higher active policy terminations. The
reported loss ratio for the quarter was 76 percent.

Individual long term care sales decreased slightly from the prior quarter to
$60 million, but remain elevated reflecting accelerated sales in advance of
previously announced pricing and portfolio actions. The company expects sales
levels to decline in the first quarter of 2013 as the accelerated sales from
the previously announced pricing and portfolio actions should subside. The
company continues to utilize reinsurance in long term care insurance as part
of its capital optimization strategies.

In the third quarter of 2012, the company began to request another round of
long term care in force premium rate increases with the goal of achieving an
average premium increase in excess of 50 percent on the older generation
policies and an average premium increase in excess of 25 percent on an earlier
series of new generation policies over the next five years. The premium rate
increases are designed to mitigate losses on the older generation policies.
Although the earlier series of the newer generation policies have generated
positive operating earnings to date, the rate increase on these policies will
help offset lower than priced-for returns due to lower interest rates,
unfavorable business mix and lower lapse rates than expected. Subject to
regulatory approval, this premium rate increase would generate approximately
$200 to $300 million of additional annual premiums when fully implemented. As
of December 31, 2012, this round of rate action has been filed in 49 states
and has approvals representing approximately 20 percent of the targeted
premium increase.

In July 2012, the company began filing a new product scheduled for release in
the second quarter of 2013, which will include underwriting improvements such
as gender distinct pricing for single applicants and blood and lab
underwriting requirements for all applicants. As of December 31, 2012, the new
product has been filed in 49 states and has received approval from 34 states.

Fixed Annuities
Fixed annuities net operating income was $20 million, compared with $19
million in the prior quarter and $18 million in the prior year. The results in
the prior year included a $4 million unfavorable impact related to accruals
for state guarantee fund assessments. Sales in the quarter totaled $248
million and were down both sequentially and from the prior year as the company
continues to maintain margins in the low interest rate environment.

Global Mortgage Insurance Division

Global Mortgage Insurance Division had net operating income of $131 million,
compared with net operating income of $56 million in the prior quarter and a
net operating loss of $13 million a year ago. In the fourth quarter of 2012,
regulations were finalized with regard to the new Government Guarantee
framework in Canada that went into effect January 1, 2013. As a result, exit
fee obligations under the existing Government Guarantee Agreement were
terminated. Results in the quarter include a $78 million after-tax favorable
adjustment from the reversal of the accrued liability for exit fees associated
with the change to the Government Guarantee Agreement.



Global Mortgage Insurance Division
Net Operating Income (Loss)
(Amounts in millions)                   Q4 12   Q3 12   Q4 11
International Mortgage Insurance
             Canada(3)                  $ 114   $ 42    $ 40
             Australia                    62      57      54
             Other Countries              (11)    (5)     (11)
Total International Mortgage Insurance    165     94      83
U.S. Mortgage Insurance                   (34)    (38)    (96)
Total Global Mortgage Insurance         $ 131   $ 56    $ (13)



Sales
(Amounts in billions)             Q4 12  Q3 12  Q4 11
International Mortgage Insurance
       Flow
             Canada               $ 4.4  $ 7.2  $ 5.2
             Australia              9.6    8.8    7.9
             Other Countries        0.5    0.4    0.4
       Bulk
             Canada                 4.1    2.6    1.0
             Australia              —      —      1.1
             Other Countries        —      —      0.3
U.S. Mortgage Insurance
       Primary Flow                 5.1    4.7    3.2
       Primary Bulk                 —      —      —



International Mortgage Insurance Segment

Highlights

  oReported International Mortgage Insurance segment operating earnings were
    $165 million, including a favorable adjustment of $78 million associated
    with the finalization of the new Government Guarantee framework in Canada,
    compared with $94 million in the prior quarter and $83 million a year ago.
  oCanada operating earnings of $114 million were up from $42 million in the
    prior quarter and $40 million in the prior year. The loss ratio was 31
    percent, up one point sequentially and down nine points year over year.
    Results in the quarter also included unfavorable taxes of $3 million.
    
  oAustralia operating earnings of $62 million were up from $57 million in
    the prior quarter and $54 million in the prior year. The loss ratio in the
    current quarter was 36 percent, down 11 points sequentially and down 10
    points year over year.
  oOther Countries had a net operating loss of $11 million, compared to a net
    operating loss of $5 million in the prior quarter and a net operating loss
    of $11 million in the prior year.
  oIn Canada, flow new insurance written (NIW) was down 40 percent^(6)
    sequentially and down 17 percent^(6) year over year from changes to the
    rules governing the issuance of high loan-to-value residential mortgages
    made in July 2012 and normal seasonal variation. In addition, the company
    completed several bulk transactions, consisting of low loan-to-value prime
    loans, of approximately $4.1 billion reflecting its selective
    participation in this market.
  oIn Australia, flow NIW was up eight percent^(6) sequentially and up 19
    percent^(6) year over year as the current year origination market was
    larger primarily from improved affordability from lower mortgage rates.
  oThe Canadian and Australian businesses continue to maintain sound capital
    positions.
  oDividends of $121 million were paid to the holding company through
    December 31, 2012.

Canada Mortgage Insurance
Canada operating earnings of $114 million were up from $42 million in the
prior quarter and $40 million in the prior year. Results in the quarter
included a $78 million favorable adjustment from the reversal of the accrued
liability for exit fees related to the modification of the Government
Guarantee Agreement in addition to $3 million of unfavorable taxes. The loss
ratio in the quarter was 31 percent, up from 30 percent in the prior quarter
reflecting seasonal variation and down from 40 percent in the prior year from
lower new delinquencies, net of cures, and continued improvement in Alberta.
Total delinquencies were down one percent sequentially from the maturing of
the larger 2007 and 2008 books of business. Flow NIW was down 40 percent^(6)
sequentially and down 17 percent^(6) year over year from changes to the rules
governing the issuance of high loan-to-value residential mortgages made in
July 2012 and normal seasonal variation. In addition, the company completed
several bulk transactions, consisting of low loan-to-value prime loans, of
approximately $4.1 billion reflecting its selective participation in this
market. At quarter end, the Canada mortgage insurance business had a
regulatory capital ratio of approximately 170 percent^(5), well in excess of
regulatory requirements. GAAP book value was $3.0 billion, of which $1.7
billion represented Genworth's 57.5 percent ownership interest.

Australia Mortgage Insurance
Australia reported net operating earnings of $62 million versus reported
operating earnings of $57 million in the prior quarter and $54 million in the
prior year as claims development in the quarter was in line with the first
quarter reserve strengthening expectations. The loss ratio in the quarter was
36 percent, down 11 points sequentially and 10 points from the prior year.
Overall, delinquencies were down 14 percent from the prior quarter and new
delinquencies were lower in all major states. Flow NIW was up eight
percent^(6) sequentially and up 19 percent^(6) year over year as the current
year origination market was larger primarily from improved affordability from
lower mortgage rates. At quarter end, the Australia mortgage insurance
business had a regulatory capital ratio of approximately 149 percent^(5), as
the business continued to expand its reinsurance program as part of risk and
capital management strategies. The GAAP book value was $2.3 billion as of the
end of the quarter.

Other Countries Mortgage Insurance
Other Countries had a net operating loss of $11 million from increased losses
in the current quarter primarily in Ireland, compared to a net operating loss
of $5 million in the prior quarter and a net operating loss of $11 million in
the prior year.

U.S. Mortgage Insurance Segment

Highlights

  oU.S. MI net operating loss was $34 million, compared with net operating
    losses of $38 million in the prior quarter and $96 million in the prior
    year. Results in the quarter included $8 million of favorable taxes versus
    the prior quarter and $10 million versus the prior year primarily from
    state tax effective rate changes.
  oTotal flow delinquencies of 66,340 decreased four percent sequentially and
    21 percent from the prior year. New flow delinquencies decreased
    approximately four percent from the prior quarter and decreased
    approximately 23 percent from the prior year. New delinquencies decreased
    approximately 23 percent for the year ended December 31, 2012 compared to
    the prior year.
  oLoss mitigation savings were $165 million in the current quarter and $674
    million for the year ended December 31, 2012, exceeding the previously
    announced full year loss mitigation savings target of $300 to $400
    million.
  oFlow NIW increased nine percent over the prior quarter and 59 percent over
    the prior year to $5.1 billion reflecting an increase in both refinance
    and purchase private mortgage insurance penetration, a larger origination
    market and stable market share.
  oThe combined risk-to-capital ratio as of December 31, 2012 is estimated at
    30.4:1^(5).
  oOn January 16, 2013, the company announced a comprehensive U.S. MI capital
    plan.

U.S. MI net operating loss was $34 million, compared with net operating losses
of $38 million in the prior quarter and $96 million in the prior year.

Total flow delinquencies decreased four percent sequentially and 21 percent
versus the prior year. New flow delinquencies decreased approximately four
percent from the prior quarter and decreased approximately 23 percent from the
prior year, reflecting the continued burn through of delinquencies from the
2005 to 2008 book years. The flow average reserve per delinquency was
$29,700, down slightly from the prior quarter.

Total losses were up slightly compared to the prior quarter as an expected
reduction in loss mitigation savings and modest changes in aging was partially
offset by lower new delinquency development with a favorable mix. Paid claims
increased 14 percent from the prior year, driven by higher claim counts and a
reduction in captive benefits, partially offset by a reduction in severity
from claims mitigation.

Loss mitigation savings were $165 million in the quarter, down 13 percent from
the prior quarter, from an expected reduction in overall workouts and reduced
claims mitigation savings.

Flow NIW increased nine percent over the prior quarter and 59 percent versus
the prior year to $5.1 billion reflecting an increase in both refinance and
purchase private mortgage insurance penetration, a larger origination market
and stable market share. Overall private mortgage insurance market penetration
was flat to the prior quarter and up approximately three points year over
year. The company's market share at the end of the quarter is estimated to be
13 percent. Flow persistency was 79 percent. In addition, the Home Affordable
Refinance Program (HARP) accounted for about $2.4 billion in the quarter and
$8.4 billion for the full year of insurance that is treated as a modification
of the coverage on existing insurance in force rather than NIW.

The combined U.S. MI statutory risk-to-capital ratio is estimated at
30.4:1^(5) at the end of the fourth quarter with the risk-to-capital ratio for
Genworth Mortgage Insurance Corporation (GMICO) estimated at 36.9:1^(5). GMICO
currently maintains waivers or other authorizations from 45 states that permit
the company to continue writing new business while its risk-to-capital ratio
exceeds 25.0:1. Additionally, the company has separately capitalized and
licensed legal entities to write new business for states where waivers are not
in place, subject to the approval of applicable regulators and the GSEs
(government sponsored entities) approval. Currently, new business in four
states is being written out of Genworth Residential Mortgage Assurance
Corporation (GRMAC), a subsidiary of GMICO.

On January 16, 2013, the company announced a comprehensive U.S. MI capital
plan that, when implemented, will reduce GMICO's risk-to-capital by 12 to 15
points, decrease the likelihood that the U.S. mortgage insurance subsidiaries
will require additional capital for the foreseeable future, ensure the
continued ability to write new business and reduce the risk of a default under
the indenture governing Genworth's senior notes through an internal legal
entity reorganization. The company expects to complete this transaction in the
second quarter of 2013, subject to regulatory approval. As part of this
capital plan, effective January 31, 2013, the company completed the transfer
of ownership of the European mortgage insurance subsidiaries to GMICO. The
effect of this transfer will increase GMICO's statutory capital by
approximately $230 million. The transfer would have resulted in a favorable
impact to GMICO's risk-to-capital ratio of approximately 12 points as of
December 31, 2012.

Corporate and Other Division

Corporate and Other Division net operating loss was $40 million, compared with
$21 million in the prior quarter and net operating income of $43 million in
the prior year.



Corporate and Other Division
Net Operating Income (Loss)
(Amounts in millions)      Q4 12   Q3 12   Q4 11
International Protection   $ 8     $ 8     $ 19
Wealth Management            8       10      12
Runoff                       8       9       15
Corporate and Other          (64)    (48)    (3)
Total Corporate and Other  $ (40)  $ (21)  $ 43





Assets Under Management ^(7)
(Amounts in millions)                             Q4 12     Q3 12     Q4 11
Wealth Management                                 $ 22,349  $ 22,633  $ 25,087
Variable Annuities                                  8,095     8,270     8,315
Guaranteed Investment Contracts, Funding
Agreements
        Backing Notes and Funding Agreements        2,153     2,297     2,623

International Protection Segment
International Protection operating earnings of $8 million were flat
sequentially and down from $19 million in the prior year. The reported loss
ratio increased five points from the prior quarter to 23 percent as new claim
registrations were up 11 percent. The reported loss ratio also increased seven
points from the prior year as higher claim severity primarily in Southern
Europe was partially offset by lower new claim registrations. The underwriting
margin^(8) decreased two points from the prior quarter and four points from
the prior year to 17 percent from higher losses. Operating expenses decreased
$6 million after-tax versus the prior year and were flat to the prior quarter.
In light of the continued slow consumer lending environment in Europe,
additional actions have been taken to reduce expenses and mitigate these
impacts.Sales decreased one percent^(6) versus the prior quarter and three
percent^(6) versus the prior year. At quarter end, the lifestyle protection
business had a regulatory capital ratio of approximately 321 percent^(5).
During the quarter, the business paid a $63 million dividend to the holding
company bringing total dividends paid to the holding company through December
31, 2012 to $119 million. 

Wealth Management Segment
Wealth Management net operating income was $8 million, compared with $10
million in the prior quarter and $12 million in the prior year. Net operating
income in the prior year included approximately $2 million for Genworth
Financial Investment Services (GFIS), which was sold on April 2, 2012. Assets
under management (AUM) decreased sequentially to $22.3 billion as negative net
flows of $373 million, primarily related to relative investment performance,
were partially offset by positive market conditions impacting AUM by $89
million. On January 31, 2013, Genworth Wealth Management launchedGPS Select
Solutions, a suite ofnewmulti-strategist solutionsto help grow or preserve
wealth,generate income, or serve a variety of other specific investment
goals.Margins^(9) as a percentage of average AUM decreased 18 percent from
the prior year. As of the end of the quarter, total advisors with assets on
the platform were approximately 6,240.During the quarter, the business paid a
$9 million dividend to the holding company bringing total dividends paid to
the holding company through December 31, 2012 to $39 million. 

Runoff Segment
The Runoff segment's net operating income was $8 million, compared with $9
million in the prior quarter and $15 million in the prior year. Results in the
current quarter reflected more favorable taxes versus the prior year. Results
in the prior quarter and prior year benefitted from more favorable equity
market conditions. Results in the prior quarter also included a $6 million
unfavorable impact from refinement of DAC assumptions primarily related to the
company's annual review of assumptions.

Corporate and Other
Corporate and Other's net operating loss was $64 million, compared with $48
million in the prior quarter and $3 million in the prior year. Results in the
current quarter reflected $13 million of higher taxes primarily from a
reversal of tax benefits in the prior quarter and higher expenses associated
with the debt tender that was completed in the quarter. Results in the prior
year reflected favorable taxes. On a pre-tax operating basis, the loss
increased 11 percent year over year from the higher debt tender expenses in
the quarter.

Investment Portfolio Performance
Investment income increased, with net investment incomeof $840 million,
compared to $825 million in the third quarter. The core yield^(2) increased
slightly to approximately 4.6 percent from approximately 4.5 percent in the
prior quarter from more favorable limited partnership performance.

Net income in the quarter included $1 million of net investment gains, net of
tax and DAC amortization of $7 million. Total impairments, net of tax, were
$14 million in the current quarter and $70 million for the year ended December
31, 2012.

Net unrealized investment gains were $2.6 billion, net of tax and other items,
as of December 31, 2012, compared with $1.5 billion as of December 31, 2011
and $2.6 billion as of September 30, 2012. The fixed maturity securities
portfolio had gross unrealized investment gains of $6.7 billion compared with
$5.1 billion as of December 31, 2011 and gross unrealized investment losses of
$0.6 billion compared with $1.4 billion as of December 31, 2011.

Holding Company
Genworth's holding company ended the quarter with approximately $1.0 billion
of cash and highly liquid securities, down approximately $360 million
sequentially primarily from approximately $345 million in payments made to the
operating companies related to tax sharing agreements and $208 million of debt
interest payments and debt repurchase partially offset by $191 million of
dividends received from the operating companies. The holding company targets
maintaining cash balances of at least two times its annual debt service
expense. The holding company has no debt maturities until June 2014. 

About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance
holding company dedicated to helping people secure their financial lives,
families and futures. Genworth has leadership positions in offerings that
assist consumers in protecting themselves, investing for the future and
planning for retirement -- including life insurance, long term care insurance,
financial protection coverages, and independent advisor-based wealth
management -- and mortgage insurance that helps consumers achieve home
ownership while assisting lenders in managing their risk and capital.

Genworth has approximately 6,300 employees and operates through three
divisions: U.S. Life Insurance, comprised of the U.S. Life Insurance segment,
which includes life insurance, long term care insurance (LTC) and fixed
annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and
International Mortgage Insurance segments; and the Corporate and Other
division, which includes the International Protection, Wealth Management and
Runoff segments. Its products and services are offered through financial
intermediaries, advisors, independent distributors and sales specialists.
Genworth Financial, Inc., headquartered in Richmond, Virginia, traces its
roots back to 1871 and became a public company in 2004. For more information,
visit genworth.com. From time to time, Genworth Financial, Inc. releases
important information via postings on its corporate website. Accordingly,
investors and other interested parties are encouraged to enroll to receive
automatic email alerts and Really Simple Syndication (RSS) feeds regarding new
postings. Enrollment information is found under the "Investors" section of
genworth.com.

Conference Call and Financial Supplement Information
This press release and the fourth quarter 2012 financial supplement are now
posted on the company's website. Additional information regarding financial
results,Australia mortgage insurance and U.S. mortgage insuranceare also
posted on the company's website, http://investor.genworth.com. Investors are
encouraged to review all of these materials.

Genworth will conduct a conference call on February 6, 2013 at 9 a.m. (ET) to
discuss the quarter's results and provide an update on the company's strategy
and 2013 goals. Additional materials relating to the 2013 business goals will
be available at 8 a.m. (ET) on February 6, 2013. The conference call will be
accessible via telephone and the Internet. The dial-in number for the
conference call is 866 393.0571 or 206 453.2872 (outside the U.S.). To
participate in the call by webcast, register at http://investor.genworth.com
at least 15 minutes prior to the webcast to download and install any necessary
software.

Replays of the call will be available through February 20, 2013 at 855
859.2056 or 404 537.3406 (outside the U.S.); the conference ID # for the call
is # 83049389. The webcast will also be archived on the company's website.

Use of Non-GAAP Measures
This press release includes the non-GAAP financial measure entitled "net
operating income (loss)." The chief operating decision maker evaluates segment
performance and allocates resources on the basis of net operating income
(loss) available to Genworth Financial, Inc.'s common stockholders. The
company defines net operating income (loss) available to Genworth Financial,
Inc.'s common stockholders as income (loss) from continuing operations
excluding the after-tax effects of income attributable to noncontrolling
interests, net investment gains (losses), goodwill impairments, gains (losses)
on the sale of businesses and other infrequent or unusual non-operating items.
The company excludes net investment gains (losses) and infrequent or unusual
non-operating items because the company does not consider them to be related
to the operating performance of the company's segments and Corporate and Other
activities. A component of the company's net investment gains (losses) is the
result of impairments, the size and timing of which can vary significantly
depending on market credit cycles. In addition, the size and timing of other
investment gains (losses) can be subject to the company's discretion and are
influenced by market opportunities, as well as asset-liability matching
considerations. Goodwill impairments and gains (losses) on the sale of
businesses are also excluded from net operating income (loss) available to
Genworth Financial, Inc.'s common stockholders because, in the company's
opinion, they are not indicative of overall operating trends. Other
non-operating items are also excluded from net operating income (loss)
available to Genworth Financial, Inc.'s common stockholders if, in the
company's opinion, they are not indicative of overall operating trends.

In the third quarter of 2012, management revised the definition of net
operating income (loss) available to Genworth Financial, Inc.'s common
stockholders to exclude goodwill impairments to better reflect the basis on
which the performance of its business is internally assessed and to reflect
management's opinion that it is not indicative of overall operating trends.
The company also modified its definition to explicitly state that gains
(losses) on the sale of businesses, which were previously included in the
infrequent and unusual category, are excluded from net operating income
(loss). All prior periods presented have been re-presented to reflect this new
definition.

While some of these items may be significant components of net income (loss)
available to Genworth Financial, Inc.'s common stockholders in accordance with
GAAP, the company believes that net operating income (loss) available to
Genworth Financial, Inc.'s common stockholders and measures that are derived
from or incorporate net operating income (loss) available to Genworth
Financial, Inc.'s common stockholders, including net operating income (loss)
available to Genworth Financial, Inc.'s common stockholders per common share
on a basic and diluted basis, are appropriate measures that are useful to
investors because they identify the income (loss) attributable to the ongoing
operations of the business. Management also uses net operating income (loss)
available to Genworth Financial, Inc.'s common stockholders as a basis for
determining awards and compensation for senior management and to evaluate
performance on a basis comparable to that used by analysts. However, the items
excluded from net operating income (loss) available to Genworth Financial,
Inc.'s common stockholders have occurred in the past and could, and in some
cases will, recur in the future. Net operating income (loss) available to
Genworth Financial, Inc.'s common stockholders and net operating income (loss)
available to Genworth Financial, Inc.'s common stockholders per common share
on a basic and diluted basis are not substitutes for net income (loss)
available to Genworth Financial, Inc.'s common stockholders or net income
(loss) available to Genworth Financial, Inc.'s common stockholders per common
share on a basic and diluted basis determined in accordance with GAAP. In
addition, the company's definition of net operating income (loss) available to
Genworth Financial, Inc.'s common stockholders may differ from the definitions
used by other companies. There were no infrequent or unusual non-operating
items excluded from net operating income available to Genworth Financial,
Inc.'s common stockholders during the periods presented other than a $19
million after-tax goodwill impairment related to the reverse mortgage business
and a $36 million gain related to the sale of the Medicare supplement
insurance business recorded in the fourth quarter of 2011. The tables at the
end of this press release reflect net operating income (loss) as determined in
accordance with accounting guidance related to segment reporting and a
reconciliation of net operating income (loss) of the company's segments and
Corporate and Other activities to net income available to Genworth Financial,
Inc.'s common stockholders for the three and twelve months ended December 31,
2012 and 2011.

This press release includes the non-GAAP financial measure entitled "core
yield" as a measure of investment yield. The company defines core yield as the
investment yield adjusted for those items that are not recurring in nature.
Management believes that analysis of core yield enhances understanding of the
investment yield of the company. However, core yield as defined by the company
should not be viewed as a substitute for GAAP investment yield. In addition,
the company's definition of core yield may differ from the definitions used by
other companies. A reconciliation of core yield to reported GAAP yield is
included in a table at the end of this press release.

Definition of Selected Operating Performance Measures
The company reports selected operating performance measures including "sales,"
"assets under management" and "insurance in force" or "risk in force" which
are commonly used in the insurance and investment industries as measures of
operating performance.

Management regularly monitors and reports sales metrics as a measure of volume
of new and renewal business generated in a period. Sales refer to: (1)
annualized first-year premiums for term life and long term care insurance; (2)
annualized first-year deposits plus five percent of excess deposits for
universal and term universal life insurance products; (3) 10 percent of
premium deposits for linked-benefits products; (4) new and additional
premiums/deposits for fixed annuities; (5) new insurance written for mortgage
insurance; (6) written premiums and deposits, gross of ceded reinsurance and
cancellations, and premium equivalents, where the company earns a fee for
administrative services only business, for the lifestyle protection insurance
business; and (7) gross flows and net flows, which represent gross flows less
redemptions, for the wealth management business. Sales do not include renewal
premiums on policies or contracts written during prior periods. The company
considers annualized first-year premiums, premium equivalents, new
premiums/deposits, gross and net flows, 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 press release also includes information related to loss mitigation
activities for the U.S. mortgage insurance business. The company defines loss
mitigation activities as rescissions, cancellations, borrower loan
modifications, repayment plans, lender- and borrower-titled presales, claims
administration and other loan workouts. Estimated savings related to
rescissions are the reduction in carried loss reserves, net of premium refunds
and reinstatement of prior rescissions. Estimated savings related to loan
modifications and other cure related loss mitigation actions represent the
reduction in carried loss reserves. For non-cure related actions, including
presales, the estimated savings represent the difference between the full
claim obligation and the actual amount paid. The company believes that this
information helps to enhance the understanding of the operating performance of
the U.S. mortgage insurance business as loss mitigation activities
specifically impact current and future loss reserves and level of claim
payments.

This press release also includes the metric entitled "underwriting margin"
related to the lifestyle protection business. The company defines underwriting
margin as underwriting profit divided by net earned premiums. Underwriting
profit is defined as premiums less benefits and other changes in reserves,
commissions (which include amortization of deferred acquisition costs) and
profit share expenses. Management believes that this analysis of underwriting
margin enhances the understanding of the lifestyle protection business.

Management regularly monitors and reports assets under management for the
wealth management business, insurance in force and risk in force. Assets
under management for the wealth management business represent third-party
assets under management that are not consolidated in the company's financial
statements. Insurance in force for the life, international mortgage and U.S.
mortgage insurance businesses is a measure of the aggregate face value of
outstanding insurance policies as of the respective reporting date. For the
risk in force in the international mortgage insurance business, the company
has computed an "effective" risk in force amount, which recognizes that the
loss on any particular loan will be reduced by the net proceeds received upon
sale of the property. Effective risk in force has been calculated by applying
to insurance in force a factor of 35 percent that represents the highest
expected average per-claim payment for any one underwriting year over the life
of the company's businesses in Canada and Australia. Risk in force for the
U.S. mortgage insurance business is the obligation that is limited under
contractual terms to the amounts less than 100 percent of the mortgage loan
value. The company considers assets under management for the wealth
management business, insurance in force and risk in force to be a measure of
the company's operating performance because they represent a measure of the
size of the business at a specific date which will generate revenues and
profits in a future period, rather than a measure of the company's revenues or
profitability during that period.

These operating measures enable the company to compare its operating
performance across periods without regard to revenues or profitability related
to policies or contracts sold in prior periods or from investments or other
sources.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as "expects,"
"intends," "anticipates," "plans," "believes," "seeks," "estimates," "will" or
words of similar meaning and include, but are not limited to, statements
regarding the outlook for the company's future business and financial
performance. Forward-looking statements are based on management's current
expectations and assumptions, which are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict. Actual
outcomes and results may differ materially due to global political, economic,
business, competitive, market, regulatory and other factors and risks,
including the following:

  oRisks relating to the company's businesses, including downturns and
    volatility in global economies and equity and credit markets; downgrades
    or potential downgrades in the company's financial strength or credit
    ratings; interest rate fluctuations and levels; adverse capital and credit
    market conditions; the impact of expiration of the company's credit
    facilities; the valuation of fixed maturity, equity and trading
    securities; defaults, downgrades or other events impacting the value of
    the company's fixed maturity securities portfolio; defaults on the
    company's commercial mortgage loans or the mortgage loans underlying the
    company's investments in commercial mortgage-backed securities and
    volatility in performance; goodwill impairments; defaults by
    counterparties to reinsurance arrangements or derivative instruments; an
    adverse change in risk based capital and other regulatory requirements;
    insufficiency of reserves; legal constraints on dividend distributions by
    the company's subsidiaries; competition; availability, affordability and
    adequacy of reinsurance; loss of key distribution partners; regulatory
    restrictions on the company's operations and changes in applicable laws
    and regulations; legal or regulatory investigations or actions; the
    failure of or any compromise of the security of the company's computer
    systems; the occurrence of natural or man-made disasters or a pandemic;
    the effect of the enactment of the Dodd-Frank Wall Street Reform and
    Consumer Protection Act; changes in the accounting standards issued by the
    Financial Accounting Standards Board or other standard-setting bodies;
    impairments of or valuation allowances against the company's deferred tax
    assets; changes in expected morbidity and mortality rate; accelerated
    amortization of deferred acquisition costs and present value of future
    profits; reputational risks as a result of rate increases on certain in
    force long term care insurance products; medical advances, such as genetic
    research and diagnostic imaging, and related legislation; unexpected
    changes in persistency rates; ability to continue to implement actions to
    mitigate the impact of statutory reserve requirements; the failure of
    demand for long term care insurance to increase; political and economic
    instability or changes in government policies; foreign exchange rate
    fluctuations; unexpected changes in unemployment rates; unexpected
    increases in mortgage insurance default rates or severity of defaults; the
    significant portion of high loan to value insured international mortgage
    loans which generally result in more and larger claims than lower
    loan-to-value ratios; competition with government owned and government
    sponsored enterprises offering mortgage insurance; changes in
    international regulations reducing demand for mortgage insurance;
    increases in mortgage insurance default rates; failure to meet, or have
    waived to the extent needed, the minimum statutory capital requirements
    and hazardous financial condition standards; uncertain results of
    continued investigations of insured U.S. mortgage loans; possible
    rescissions of coverage and the results of objections to the company's
    rescissions; the extent to which loan modifications and other similar
    programs may provide benefits to the company; unexpected changes in
    unemployment and underemployment rates in the United States; further
    deterioration in economic conditions or a further decline in home prices
    in the United States; problems associated with foreclosure process defects
    in the United States that may defer claim payments; changes to the role or
    structure of Federal National Mortgage Association (Fannie Mae) and
    Federal Home Loan Mortgage Corporation (Freddie Mac); competition with
    government owned and government sponsored enterprises offering U.S.
    mortgage insurance; changes in regulations that affect the U.S. mortgage
    insurance business; the influence of Fannie Mae, Freddie Mac and a small
    number of large mortgage lenders and investors; decreases in the volume of
    high loan to value mortgage originations or increases in mortgage
    insurance cancellations in the United States; increases in the use of
    alternatives to private mortgage insurance in the United States and
    reductions by lenders in the level of coverage they select; the impact of
    the use of reinsurance with reinsurance companies affiliated with U.S.
    mortgage lending customers; legal actions under the Real Estate Settlement
    Procedures Act of 1974; and potential liabilities in connection with the
    company's U.S. contract underwriting services;
  oOther risks, including the risk of failure to complete the implementation
    of the capital plan (including the reorganization) in a timely manner or
    at all for any reason (including failure to obtain required insurance
    regulator and other approvals or relief), failure to achieve the
    anticipated benefits of the capital plan, and unanticipated complexities
    or costs in implementing the capital plan; adverse market or other
    conditions might further delay or impede the planned IPO of the company's
    mortgage insurance business in Australia; the possibility that in certain
    circumstances the company will be obligated to make payments to General
    Electric Company (GE) under the tax matters agreement with GE even if the
    company's corresponding tax savings are never realized and payments could
    be accelerated in the event of certain changes in control; and provisions
    of the company's certificate of incorporation and bylaws and the tax
    matters agreement with GE may discourage takeover attempts and business
    combinations that stockholders might consider in their best interests; and
  oRisks relating to the company's common stock, including the suspension of
    dividends and stock price fluctuations.

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

Condensed Consolidated Statements of Income
(Amounts in millions, except per share amounts)
                                       Three months ended  Twelve months ended
                                       December 31,        December 31,
                                       2012       2011     2012       2011
Revenues:
Premiums                               $  1,318   $ 1,352  $  5,038   $ 5,705
Net investment income                     840       827       3,343     3,380
Net investment gains (losses)             13        5         23        (220)
Insurance and investment product fees     367       440       1,619     1,503
and other
    Total revenues                        2,538     2,624     10,023    10,368
Benefits and expenses:
Benefits and other changes in policy      1,401     1,392     5,378     5,941
reserves
Interest credited                         193       195       775       794
Acquisition and operating expenses,
net of
deferrals                                 330       569       1,866     2,294
Amortization of deferred acquisition
costs and
intangibles                               145       133       727       598
Goodwill impairment                       —         29        89        29
Interest expense                          124       121       476       506
    Total benefits and expenses           2,193     2,439     9,311     10,162
Income before income taxes                345       185       712       206
Provision for income taxes                81        10        189       18
Net income                                264       175       523       188
Less: net income attributable to          98        33        200       139
noncontrolling interests
Net income available to Genworth
Financial, Inc.'s
common stockholders                    $  166     $ 142    $  323     $ 49
Net income available to Genworth
Financial, Inc.'s
common stockholders per common share:
    Basic                              $  0.34    $ 0.29   $  0.66    $ 0.10
    Diluted                            $  0.34    $ 0.29   $  0.65    $ 0.10
Weighted-average common shares
outstanding:
    Basic                                 491.9     490.9     491.6     490.6
    Diluted                               493.9     492.7     494.4     493.5



Reconciliation of Net Operating Income to Net Income
(Amounts in millions, except per share amounts)
                                       Three months ended  Twelve months ended
                                       December 31,        December 31,
                                       2012       2011     2012        2011
Net operating income (loss):
U.S. Life Insurance Division
   U.S. Life Insurance segment
   Life Insurance                      $  49      $ 48     $  107      $ 211
   Long Term Care                         7         28        101        99
   Fixed Annuities                        20        18        82         78
   Total U.S. Life Insurance segment      76        94        290        388
   Total U.S. Life Insurance Division     76        94        290        388
Global Mortgage Insurance Division
   International Mortgage Insurance
   segment
   Canada^(3)                             114       40        234        159
   Australia                              62        54        142        196
   Other Countries                        (11)      (11)      (34)       (27)
   Total International Mortgage           165       83        342        328
   Insurance segment
   U.S. Mortgage Insurance segment        (34)      (96)      (140)      (513)
   Total Global Mortgage Insurance        131       (13)      202        (185)
   Division
Corporate and Other Division
   International Protection segment       8         19        24         91
   Wealth Management segment              8         12        42         47
   Runoff segment                         8         15        46         27
   Corporate and Other                    (64)      (3)       (205)      (220)
   Total Corporate and Other Division     (40)      43        (93)       (55)
Net operating income                      167       124       399        148
Adjustments to net operating income:
Net investment gains (losses), net of
taxes and other
   adjustments                            1         1         (3)        (116)
Goodwill impairment, net of taxes         —         (19)      (86)       (19)
Gain on sale of business, net of          (2)       36        13         36
taxes
Net income available to Genworth
Financial, Inc.'s
   common stockholders                    166       142       323        49
Add: net income attributable to           98        33        200        139
noncontrolling interests
Net income                             $  264     $ 175    $  523      $ 188
Net income available to Genworth
Financial, Inc.'s
   common stockholders per common
   share:
   Basic                               $  0.34    $ 0.29   $  0.66     $ 0.10
   Diluted                             $  0.34    $ 0.29   $  0.65     $ 0.10
Net operating income per common
share:
   Basic                               $  0.34    $ 0.25   $  0.81     $ 0.30
   Diluted                             $  0.34    $ 0.25   $  0.81     $ 0.30
Weighted-average common shares
outstanding:
   Basic                                  491.9     490.9     491.6      490.6
   Diluted                                493.9     492.7     494.4      493.5



Condensed Consolidated Balance Sheets
(Amounts in millions)
                                                    December 31,  December 31,
                                                    2012          2011
Assets
 Cash, cash equivalents and invested assets         $   78,757    $   77,083
 Deferred acquisition costs                             5,036         5,193
 Intangible assets                                      481           580
 Goodwill                                               1,128         1,253
 Reinsurance recoverable                                17,230        16,998
 Deferred tax and other assets                          743           958
 Separate account assets                                9,937         10,122
    Total assets                                    $   113,312   $   112,187
Liabilities and stockholders' equity
 Liabilities:
  Future policy benefits                            $   33,505    $   32,175
  Policyholder account balances                         26,262        26,345
  Liability for policy and contract claims              7,509         7,620
  Unearned premiums                                     4,333         4,223
  Deferred tax and other liabilities                    6,763         7,146
  Borrowings related to securitization entities         336           396
  Non-recourse funding obligations                      2,066         3,256
  Long-term borrowings                                  4,776         4,726
  Separate account liabilities                          9,937         10,122
    Total liabilities                                   95,487        96,009
 Stockholders' equity:
  Common stock                                          1             1
  Additional paid-in capital                            12,127        12,136
  Accumulated other comprehensive income (loss):
    Net unrealized investment gains (losses):
      Net unrealized gains (losses) on securities
      not
              other-than-temporarily impaired           2,692         1,617
      Net unrealized gains (losses) on other-than-
              temporarily impaired securities           (54)          (132)
    Net unrealized investment gains (losses)            2,638         1,485
    Derivatives qualifying as hedges                    1,909         2,009
    Foreign currency translation and other              655           553
    adjustments
  Total accumulated other comprehensive income          5,202         4,047
  (loss)
  Retained earnings                                     1,907         1,584
  Treasury stock, at cost                               (2,700)       (2,700)
    Total Genworth Financial, Inc.'s stockholders'      16,537        15,068
    equity
  Noncontrolling interests                              1,288         1,110
    Total stockholders' equity                          17,825        16,178
    Total liabilities and stockholders' equity      $   113,312   $   112,187



Impact of Foreign Exchange on Operating Results^(10)
Three months ended December 31, 2012
                                        Percentages         Percentages
                                        Including Foreign   Excluding Foreign
                                        Exchange            Exchange^(11)
 Canada Mortgage Insurance (MI):
 Flow new insurance written                 (15)    %       (17)     %
 Flow new insurance written (4Q12 vs.       (39)    %       (40)     %
 3Q12)
 Australia MI:
 Flow new insurance written                 22      %       19       %
 Flow new insurance written (4Q12 vs.       9       %       8        %
 3Q12)
 International Protection:
 Sales                                      (7)     %       (3)      %
 Sales (4Q12 vs. 3Q12)                      3       %       (1)      %





Reconciliation of Core Yield to Reported Yield
                                                                                                                  For the
                                                                                                                  three
                                                                                                                  months
                                                                                                                  ended
                                                                                                                  December
                                                                                                                  31,
 (Assets - amounts in billions)                                                                                   2012
 Reported Total Invested Assets and Cash                                                                          $ 78.0
 Subtract:
 Securities lending                                                                                                 0.2
 Unrealized gains (losses)                                                                                          7.2
 Derivative counterparty collateral                                                                                 0.8
 Adjusted end of period invested assets                                                                           $ 69.8
 Average Invested Assets Used in Reported Yield Calculation                                                       $ 70.0
 Subtract:
 Restricted commercial mortgage loans and other invested assets related to
 securitization entities^(12)                                                                                       0.3
 Average Invested Assets Used in Core Yield Calculation                                                           $ 69.7
 (Income - amounts in
 millions)
 Reported Net Investment Income                                                                                   $ 840
 Subtract:
 Bond calls and commercial mortgage loan prepayments                                                                13
 Reinsurance^(13)                                                                                                   16
 Other non-core items^(14)                                                                                          13
 Restricted commercial mortgage loans and other invested assets related to
 securitization entities^(12)                                                                                       5
 Core Net Investment Income                                                                                       $ 793
 Reported Yield                                                                                                     4.80 %
 Core Yield                                                                                                         4.55 %



(1) Unless otherwise stated, all references in this press release to net
income, net income per share, net operating income (loss), net operating
income per share, book value, book value per share and stockholders' equity
should be read as net income available to Genworth's common stockholders, net
income available to Genworth's common stockholders per share, net operating
income (loss) available to Genworth's common stockholders, net operating
income available to Genworth's common stockholders per share, book value
available to Genworth's common stockholders, book value available to
Genworth's common stockholders per share and stockholders' equity available to
Genworth's common stockholders, respectively.

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

(3) Fourth quarter of 2012 included a favorable adjustment of $78 million
associated with the finalization of the new Government Guarantee framework in
Canada.

(4) In the first quarter of 2012, the company changed its presentation for
life insurance sales to a premium equivalent basis. The prior period amounts
have been re-presented to reflect sales for term universal and universal life
insurance products as annualized first-year deposits plus five percent of
excess deposits and 10 percent of premium deposits for linked-benefits
products.

(5) Company estimate for the fourth quarter of 2012, due to timing of the
filing of statutory statements.

(6) Percent change excludes the impact of foreign exchange.

(7) Assets under management represent account values, net of reinsurance, and
managed third-party assets.

(8) See "Definition of Selected Operating Performance Measures" for definition
of underwriting margin.

(9) Calculated as pre-tax income as a percentage of average AUM annualized to
determine the current full year impact, excluding the impacts of GFIS. Average
AUM for December 31, 2011 excludes $2.6 billion related to GFIS. Pre-tax
income for December 31, 2011 excludes $2 million related to GFIS.

(10) All percentages are comparing the fourth quarter of 2012 to the fourth
quarter of 2011 unless otherwise stated.

(11) The impact of foreign exchange was calculated using the comparable prior
period exchange rates.

(12) Represents the incremental assets and investment income related to
restricted commercial mortgage loans and other invested assets.

(13) Represents imputed investment income related to reinsurance agreements in
the lifestyle protection insurance business.

(14) Includes mark-to-market adjustment on assets supporting executive
deferred compensation and various other immaterial items.



SOURCE Genworth Financial, Inc.

Website: http://www.genworth.com
Contact: Investors: Georgette Nicholas, +1-804-662-2248,
georgette.nicholas@genworth.com; Media: Al Orendorff, +1-804-662-2534,
alfred.orendorff@genworth.com
 
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