Genworth Announces Expense Reduction Plan

                  Genworth Announces Expense Reduction Plan

PR Newswire

RICHMOND, Va., June 6, 2013

RICHMOND, Va., June 6, 2013 /PRNewswire/ --Genworth Financial, Inc. (NYSE:
GNW) today announced an expense reduction plan as it continues to work on
improving the operating performance of its businesses. This plan will
eliminate approximately 400 positions, including 150 open positions that will
not be filled, and will reduce related information technology and program
spend. When fully implemented, the company expects to realize approximately
$80 to $90 million in annual pre-tax expense savings primarily related to
these actions. Overall expense levels may vary for a variety of reasons,
including changes in sales volume or other strategic actions the company may
take. A pre-tax non-operating charge of approximately $15 to $20 million will
be recorded in the second quarter of 2013 reflecting severance, outplacement
and other associated costs.

"These are very difficult decisions to make but the changes are essential to
our ongoing work to improve the performance of our businesses and deliver
value to our shareholders," said Tom McInerney, President and CEO."Our
organization will remain sharply focused on our priorities as we make further
progress on operating our businesses as efficiently and effectively as
possible. We'll provide support to the employees impacted and ensure they are
treated with the utmost respect. We do not believe these actions significantly
change our previously disclosed views on performance in 2013, but anticipate
them to have a more meaningful impact in future years."

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 companies have 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 5,840 employees and operates through three
divisions: U.S. Life Insurance, which includes life insurance, long term care
insurance 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 and
Runoff segments and the wealth management business presented as discontinued
operations. 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 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
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postings. Enrollment information is found under the "Investors" section of

Cautionary Note Regarding Forward-Looking Statements

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

  oRisks relating to our businesses, including downturns and volatility in
    global economies and equity and credit markets; downgrades or potential
    downgrades in our financial strength or credit ratings; interest rate
    fluctuations and levels; adverse capital and credit market conditions;
    lack of credit facilities; the valuation of fixed maturity, equity and
    trading securities; defaults, downgrades or other events impacting the
    value of our fixed maturity securities portfolio; defaults on our
    commercial mortgage loans or the mortgage loans underlying our 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 and
    required increases to reserve liabilities; legal constraints on dividend
    distributions by our subsidiaries; competition; availability,
    affordability and adequacy of reinsurance; loss of key distribution
    partners; regulatory restrictions on our operations and changes in
    applicable laws and regulations; legal or regulatory investigations or
    actions; the failure of or any compromise of the security of our computer
    systems and confidential information contained therein; 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 accounting and reporting standards issued by the Financial Accounting
    Standards Board or other standard-setting bodies and insurance regulators;
    impairments of or valuation allowances against our deferred tax assets;
    changes in expected morbidity and mortality rate; accelerated amortization
    of deferred acquisition costs and present value of future profits; ability
    to increase premiums on certain in-force long-term care insurance products
    by enough or quickly enough, including the current rate actions and any
    future rate actions; 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; fluctuations in foreign exchange rates
    and international securities markets; 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 (GSEs) offering
    mortgage insurance; changes in international regulations reducing demand
    for mortgage insurance; increases in U.S. 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 our rescissions; the extent to which loan modifications and
    other similar programs may provide benefits to us; 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 our 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 our U.S.
    mortgage lending customers; legal actions under the Real Estate Settlement
    Procedures Act of 1974 (RESPA); and potential liabilities in connection
    with our U.S. contract underwriting services;
  oOther risks, including the risk that our strategy may not be successfully
    implemented; our Capital Plan may not achieve its anticipated benefits;
    adverse market or other conditions might delay or impede the minority sale
    of our mortgage insurance business in Australia; the possibility that in
    certain circumstances we will be obligated to make payments to General
    Electric Company (GE) under the tax matters agreement with GE even if our
    corresponding tax savings are never realized and payments could be
    accelerated in the event of certain changes in control; provisions of our
    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; we do not realize the
    anticipated expense reduction in the expected time period or at all; the
    charge associated with the expense reduction is greater than anticipated;
    and the impact of the expense reduction is not as anticipated; and
  oRisks relating to our 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

SOURCE Genworth Financial, Inc.

Contact: Investors: David Rosenbaum, +1-804-662-2643,; Media: Al Orendorff, +1-804-662-2534,,
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