Genworth Financial Announces Fourth Quarter 2013 Results

           Genworth Financial Announces Fourth Quarter 2013 Results

Net Income Improves 24 Percent From Prior Year To $208 Million

Continued Progress With Long Term Care Premium Rate Actions

Strong Loss Performance In Global Mortgage Insurance Division

PR Newswire

RICHMOND, Va., Feb. 4, 2014

RICHMOND, Va., Feb. 4, 2014 /PRNewswire/ -- Genworth Financial, Inc. (NYSE:
GNW) today reported results for the fourth quarter of 2013. The company
reported net income^1 of $208 million, or $0.41 per diluted share, compared
with net income of $168 million, or $0.34 per diluted share, in the fourth
quarter of 2012. Net operating income^2 for the fourth quarter of 2013 was
$193 million, or $0.38 per diluted share, compared with net operating income
of $161 million, or $0.33 per diluted share, in the fourth quarter of 2012.
Prior year net income and net operating income included an after-tax favorable
adjustment of $78 million associated with the reversal of the accrued
liability for exit fees related to the government guarantee fund in Canada.

The company reported net income of $560 million, or $1.12 per diluted share,
in 2013, compared with net income of $325 million, or $0.66 per diluted share,
in 2012. The company reported net operating income of $616 million, or $1.24
per diluted share, in 2013, compared with net operating income of $403
million, or $0.82 per diluted share, in 2012.

"We made significant progress in 2013accelerating the turnaround of
Genworth," said Tom McInerney, President and CEO. "Our fourth quarter of 2013
results were strong and we are particularly pleased with the progress in
improving our long term care insurance business and with the good operational
performance in the Global Mortgage Insurance Division." 



Consolidated Net Income &
Net Operating Income
                                  Three months ended December 31
                                  (Unaudited)
                                  2013              2012
                                           Per               Per      Total
                                  Total    diluted  Total    diluted  % change
(Amounts in millions, except per           share             share
share)
Net income                        $ 208    $  0.41  $ 168    $  0.34  24    %
Net operating income              $ 193    $  0.38  $ 161    $  0.33  20    %
Weighted average diluted shares     501.2             493.9
Book value per share              $ 29.17           $ 33.53
Book value per share, excluding
accumulated
    other comprehensive income    $ 24.03           $ 22.95
    (loss)



Consolidated Net Income &
Net Operating Income
                                  Twelve months ended December 31
                                  (Unaudited)
                                  2013              2012
                                           Per               Per      Total
                                  Total    diluted  Total    diluted  % change
(Amounts in millions, except per           share             share
share)
Net income                        $ 560    $  1.12  $ 325    $  0.66  72    %
Net operating income              $ 616    $  1.24  $ 403    $  0.82  53    %
Weighted average diluted shares     498.7             494.4
Book value per share              $ 29.17           $ 33.53
Book value per share, excluding
accumulated
    other comprehensive income    $ 24.03           $ 22.95
    (loss)

Net investment gains, net of tax and other adjustments, were $15 million in
the quarter, compared to $2 million in the prior year. Total investment
impairments, net of tax, were $3 million in the current quarter and $14
million in the prior year.

The company recorded $29 million of incremental tax benefits during the fourth
quarter of 2013 primarily related to tax liability corrections, tax benefits
on foreign subsidiaries, and state tax adjustments.

In December 2013, Genworth Holdings, Inc. completed a $400 million senior
notes offering and the company subsequently made capital contributions of $300
million to Genworth Mortgage Holdings, LLC and $100 million to Genworth
Mortgage Insurance Corporation (GMICO) in anticipation of higher capital
requirements expected to be imposed by government-owned and
government-sponsored enterprises (GSEs) as a part of the anticipated revisions
to their eligibility standards for qualifying mortgage insurers. The company
anticipates some or all of the $300 million at Genworth Mortgage Holdings, LLC
will be deployed for the benefit of GMICO, subject to the release of the final
revisions to eligibility standards for qualifying mortgage insurers and other
relevant economic or business-related conditions existing at that time.

Net operating income results are summarized in the table below:

Net Operating Income (Loss)
(Amounts in millions)                      Q4 13   Q3 13   Q4 12
U.S. Life Insurance Division:
 U.S. Life Insurance                       $ 119   $ 111   $ 73
 Total U.S. Life Insurance Division          119     111     73
Global Mortgage Insurance Division:
 International Mortgage Insurance^3          101     90      165
 U.S. Mortgage Insurance (U.S. MI)           6       (3)     (32)
 Total Global Mortgage Insurance Division    107     87      133
Corporate and Other Division:
 International Protection                    13      4       8
 Runoff                                      19      25      8
 Corporate and Other                         (65)    (88)    (61)
 Total Corporate and Other Division          (33)    (59)    (45)
Total Net Operating Income                 $ 193   $ 139   $ 161

In the fourth quarter of 2013, the company revised its definition of net
operating income (loss) to exclude gains (losses) on the early extinguishment
of debt and on insurance block transactions to better reflect the basis on
which the performance of its business is internally assessed and to reflect
management's opinion that these measures are not indicative of overall
operating trends. All prior periods presented have been re-presented to
reflect this new definition.

Net operating income excludes net investment gains (losses), goodwill
impairments, gains (losses) on the sale of businesses, restructuring charges,
gains (losses) on the early extinguishment of debt, gains (losses) on
insurance block transactions and other adjustments, net of taxes. A
reconciliation of net operating income 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
Mortgage Insurance and International Protection 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 2013 was a favorable impact of $1 million versus the
prior quarter and an unfavorable impact of $8 million versus the prior year.

U.S. Life Insurance Division

U.S. Life Insurance Division net operating income was $119 million, compared
with $111 million in the prior quarter and $73 million a year ago.

U.S. Life Insurance Division
Net Operating Income
(Amounts in millions)      Q4 13  Q3 13  Q4 12
U.S. Life Insurance
 Life Insurance            $ 56   $ 54   $  46
 Long Term Care Insurance    42     41      7
 Fixed Annuities             21     16      20
Total U.S. Life Insurance    119    111     73
Total U.S. Life Insurance  $ 119  $ 111  $  73

Sales

(Amounts in millions)      Q4 13  Q3 13  Q4 12
U.S. Life Insurance
 Life Insurance
    Term Life              $ 9    $ 5    $ —
    Term Universal Life      —      —      11
    Universal Life           5      5      17
    Linked Benefits          3      2      3
 Long Term Care Insurance
    Individual               24     37     60
    Group                    2      3      4
 Fixed Annuities             730    760    248

Account Value

(Amounts in millions)  Q4 13     Q3 13     Q4 12
Fixed Annuities        $ 18,737  $ 18,367  $ 18,581

U.S. Life Insurance Division

Key Points

  oU.S. Life Insurance Division net operating income was $119 million,
    compared with $111 million in the prior quarter and $73 million a year
    ago. Net operating income was $394 million in 2013, compared with $334
    million in 2012.
  oCompared to the prior quarter, sales of life insurance products were
    higher, lower in individual long term care insurance (LTC) and modestly
    lower in fixed annuities.
  oThe consolidated risk-based capital (RBC) ratio is estimated to be
    approximately 470 percent^4, up from approximately 450 percent at the end
    of the third quarter of 2013.
  oOrdinary dividends of $100 million were paid to the holding company from
    the U.S. Life Insurance Division in the fourth quarter of 2013, including
    $25 million from Brookfield Life and Annuity Insurance Company Limited.
    Ordinary dividends of $200 million were paid from the U.S. Life Insurance
    Division to the holding company as of December 31, 2013.
  oAs of December 31, 2013, LTC in force premium rate increase approvals
    represented approximately $195 to $200 million of the expected $250 to
    $300 million premium increase when fully implemented.

Life Insurance

Life insurance net operating income was $56 million, compared with $54 million
in the prior quarter and $46 million in the prior year. Results in the quarter
included $8 million of favorable items, including a favorable impact from
prepayment speed adjustments on structured securities and a favorable impact
from a refinement to the calculation of incurred but not reported reserves.
Results in the quarter also included favorable taxes of $6 million from a
state tax adjustment. Current quarter mortality experience was favorable
versus pricing expectations and in line with the prior quarter but unfavorable
versus the prior year because of higher claim severity. Prior quarter results
included a net benefit of $17 million from favorable unlocking and other
adjustments.

Sales increased modestly versus the prior quarter and were down $14 million
versus the prior year when the company discontinued sales of its term
universal life insurance product because of regulatory changes and began to
transition to new term and universal life insurance product offerings. The
company is continuing to make pricing and product changes that are expected to
increase sales over time.

Long Term Care Insurance

Long term care insurance net operating income was $42 million, compared with
$41 million in the prior quarter and $7 million in the prior year. Results
benefitted from premium increases and reduced benefits of $8 million versus
the prior quarter and $34 million versus the prior year related to the premium
increases approved and implemented to date. Current quarter results included a
$7 million unfavorable reserve adjustment and $7 million of favorable taxes
primarily from a deferred tax liability correction. Results also included
unfavorable claims experience versus the prior quarter from lower
cancellations of pending claims. Prior year results included a $5 million
unfavorable refinement to reserves to more fully reflect the low interest rate
environment. The reported loss ratio for the current quarter was approximately
68 percent, four points higher than the prior quarter and five points lower
than the prior year.

Individual LTC sales of $24 million were lower than the prior quarter. Sales
are expected to continue at these levels in the near term due to the cessation
of sales of AARP branded products in the retail channel and the introduction
of higher priced products in additional states. The company is investing in
distribution and marketing to increase LTC sales over time and also announced
in the fourth quarter that it has started to file for regulatory approval of
its Privileged Choice Flex 3.0 product. The company expects to launch the new
product by the end of the first half of 2014.

As previously announced in the third quarter of 2012, the company filed for
LTC in force premium rate increases with the goal of achieving approximately
$250 to $300 million of additional annual premiums when fully implemented by
2017. As of December 31, 2013, the company has received approvals from 41
states representing approximately $195 to $200 million of the expected premium
increase.

Fixed Annuities

Fixed annuities net operating income was $21 million, compared with $16
million in the prior quarter and $20 million in the prior year. Results in the
quarter included higher investment income from limited partnership performance
versus the prior quarter and prior year and modest spread compression versus
the prior year. Sales in the quarter totaled $730 million, down modestly
sequentially but up significantly versus the prior year as the company
continued to benefit from competitively priced products in a rising interest
rate environment while still meeting targeted returns.

U.S. Life Companies Capital

The consolidated risk-based capital (RBC) ratio is estimated to be
approximately 470 percent^4, up from approximately 450 percent at the end of
the third quarter of 2013 and the consolidated U.S. life insurance companies
unassigned surplus is estimated to be $400 million^4, up from $259 million at
the end of the third quarter of 2013. During the quarter, the company
restructured reinsurance transactions related to its life insurance products
generating in excess of $200 million of benefit to unassigned surplus,
partially offset by an $80 million increase to statutoryreserves related to
its universal life products with secondary guarantees in the company's New
York subsidiary. The U.S. life insurance companies paid $75 million in
dividends in the fourth quarter of 2013. During the quarter, the consolidated
RBC ratio also benefitted from a favorable impact related to a change to the
required capital for commercial mortgage loans.

Global Mortgage Insurance Division

Global Mortgage Insurance Division had net operating income of $107 million,
compared with $87 million in the prior quarter and $133 million a year ago.



Global Mortgage Insurance Division
Net Operating Income (Loss)
(Amounts in millions)                    Q4 13    Q3 13     Q4 12
International Mortgage Insurance
         Canada^3                        $  44    $  41     $  114
         Australia                          66       61        62
         Other Countries                    (9)      (12)      (11)
Total International Mortgage Insurance      101      90        165
U.S. Mortgage Insurance                     6        (3)       (32)
Total Global Mortgage Insurance          $  107   $  87     $  133
Sales
(Amounts in billions)                   Q4 13    Q3 13     Q4 12
International Mortgage Insurance
         Flow
                 Canada                 $ 5.0    $ 6.0     $ 4.4
                 Australia                9.0      8.0       9.6
                 Other Countries          0.5      0.5       0.5
         Bulk
                 Canada                   2.4      3.9       4.1
                 Australia                —        0.1       —
                 Other Countries          0.6      —         —
U.S. Mortgage Insurance
         Primary Flow                     4.9      6.4       5.1
         Primary Bulk                     —        —         —

International Mortgage Insurance Segment

Key Points

  oReported International Mortgage Insurance segment net operating earnings
    were $101 million, compared with $90 million in the prior quarter and $165
    million a year ago. Foreign exchange had a favorable impact of $1 million
    versus the prior quarter and an unfavorable impact of $9 million versus
    the prior year, primarily in Australia. Results in the prior year included
    a $78 million after-tax favorable adjustment from the reversal of the
    accrued liability for exit fees related to the government guarantee fund.
    Net operating income was $361 million in 2013, compared with $342 million
    in 2012.
  oIn Canada, flow new insurance written (NIW) was down 17 percent^5
    sequentially and up 20 percent^5 year over year. In addition, in the
    current quarter, the company completed $2.4 billion of bulk transactions,
    consisting of low loan-to-value prime loans. In Australia, flow NIW was up
    11 percent^5 sequentially and up three percent^5 year over year.
  oThe Canadian and Australian businesses continue to maintain sound capital
    positions.
  oDividends of $67 million were paid to the holding company in the fourth
    quarter of 2013 bringing the full year dividends paid to the holding
    company to $240 million, including proceeds relating to Genworth MI Canada
    Inc.'s share repurchase program.

Canada Mortgage Insurance

Canada reported net operating earnings of $44 million versus $41 million in
the prior quarter and $114 million in the prior year. Results in the prior
year included a $78 million after-tax favorable adjustment from the reversal
of the accrued liability for exit fees related to the government guarantee
fund. The loss ratio in the quarter was 22 percent, flat to the prior quarter
and down nine points from the prior year primarily from lower new
delinquencies and a favorable shift in the geographic mix of delinquencies.
Total delinquencies were up modestly sequentially from seasonally higher new
delinquencies and lower cures and processed claims. Results in the quarter
included favorable taxes and higher expenses versus both the prior quarter and
prior year and unfavorable foreign exchange versus the prior year. Flow NIW
was down 17 percent^5 ^ sequentially from normal seasonal variation and up 20
percent^5 year over year primarily from a larger origination market. In
addition, the company completed several bulk transactions in the quarter,
consisting of low loan-to-value prime loans, of approximately $2.4 billion
reflecting its selective participation in this market. At quarter end, the
Canada mortgage insurance business had a regulatory capital ratio of 222
percent^4, well in excess of regulatory requirements. GAAP book value was $2.9
billion, of which $1.7 billion represented Genworth's 57.4 percent ownership
interest, and was flat to the prior quarter.

Australia Mortgage Insurance

Australia reported net operating earnings of $66 million versus $61 million in
the prior quarter and $62 million in the prior year. The loss ratio in the
quarter was 21 percent, down 10 points sequentially and down 15 points from
the prior year from seasonally lower new delinquencies net of cures compared
to the prior quarter and favorable aging compared to both the prior quarter
and prior year. Improvements in losses and favorable taxes of $8 million were
partially offset by a $4 million charge related to a customer contract.
Earnings were impacted by unfavorable foreign exchange of $6 million versus
the prior year. Flow NIW was up 11 percent^5 sequentially and up three
percent^5 year over year from a larger origination market. At quarter end, the
Australia mortgage insurance business had a regulatory capital ratio of 148
percent^4, in excess of regulatory requirements. Subsequent to year end 2013,
the business terminated an affiliate reinsurance treaty that will reduce the
regulatory capital ratio by approximately six points going forward. The GAAP
book value was $1.9 billion as of the end of the quarter, down $0.1 billion
from the prior quarter primarily from changes in foreign exchange.

Other Countries Mortgage Insurance

Other Countries had a net operating loss of $9 million, compared to net
operating losses of $12 million in the prior quarter and $11 million in the
prior year as the business continues to be pressured from elevated losses,
primarily in Ireland. During the quarter, the business executed two lender
settlements reducing outstanding risk-in-force in Ireland from $1.5 billion to
approximately $0.8 billion.

U.S. Mortgage Insurance Segment

Key Points

  oU.S. MI net operating income was $6 million, compared with a net operating
    loss of $3 million in the prior quarter and a net operating loss of $32
    million in the prior year. Net operating income was $37 million in 2013,
    compared with a net operating loss of $138 million in 2012.
  oFlow NIW decreased 23 percent from the prior quarter from market
    seasonality and decreased four percent from the prior year to $4.9
    billion.
  oThe risk-to-capital ratio for GMICO is estimated at 19.3:1^4 and the
    combined risk-to-capital ratio is estimated at 19.5:1^4 as of December 31,
    2013 reflecting a $100 million capital contribution and $75 million of
    admitted statutory deferred taxes.

Total flow delinquencies decreased six percent sequentially and decreased 26
percent versus the prior year. New flow delinquencies decreased approximately
seven percent from the prior quarter from recent seasonal variation and
decreased approximately 21 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 $29,400, down slightly from the prior
quarter.

Total losses were down $15 million compared to the prior quarter from
favorable changes in aging of existing delinquencies and a decrease in new
delinquency development.

Loss mitigation savings were $124 million in the quarter, down $12 million
from the prior quarter. Loss mitigation savings for the year ended December
31, 2013 were $563 million.

Flow NIW of $4.9 billion decreased 23 percent over the prior quarter
reflecting a smaller overall origination market, a modest increase in overall
private mortgage insurance market penetration and stable market share and
decreased four percent versus the prior year. Overall private mortgage
insurance market penetration was up slightly from the prior quarter and up
approximately five points year over year. The company's estimate of market
share at the end of the quarter is approximately 13 percent. Flow persistency
was 83 percent. In addition, the Home Affordable Refinance Program (HARP)
accounted for about $0.8 billion in the quarter 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 19.5:1^4
at the end of the fourth quarter with the risk-to-capital ratio for GMICO
estimated at 19.3:1^4. GMICO's estimated risk-to-capital ratio of 19.3:1^4 is
in compliance with the maximum state regulatory limit of 25.0:1 and, as a
result, GMICO is now authorized and currently writes new business for all
states. Of the waivers and approvals previously relied upon, two state waivers
have expired and each GSE approval related to the use of an alternative
affiliated insurer also expired, on December 31, 2013.GMICO currently
maintains waivers or other authorizations from 44 states that permit the
company to continue writing new business if its risk-to-capital ratio exceeds
25.0:1, however, the company plans to allow those waivers to expire pursuant
to their terms in 2014.The company expects that U.S. MI will continue to meet
its regulatory capital requirements, however, the company would pursue
required regulatory and GSE forbearance in the future, if needed.

In December 2013, Genworth Holdings, Inc. completed a $400 million senior
notes offering and the company subsequently made capital contributions of $300
million to Genworth Mortgage Holdings, LLC and $100 million to GMICO in
anticipation of the higher capital requirements expected to be imposed by the
GSEs as a part of the anticipated revisions to their eligibility standards for
qualifying mortgage insurers. The $300 million remaining at Genworth Mortgage
Holdings, LLC, if contributed to GMICO as of December 31, 2013, would have
resulted in a favorable impact to GMICO's risk-to-capital ratio of
approximately four points.

Corporate and Other Division

Corporate and Other Division net operating loss was $33 million, compared with
$59 million in the prior quarter and $45 million in the prior year. The net
operating loss was $176 million in 2013, compared with a net operating loss of
$135 million in 2012.

Corporate and Other Division
Net Operating Income (Loss)
(Amounts in millions)                                Q4 13    Q3 13    Q4 12
International Protection                             $ 13     $ 4      $ 8
Runoff                                                 19       25       8
Corporate and Other                                    (65)     (88)     (61)
Total Corporate and Other                            $ (33)   $ (59)   $ (45)
Account Value
(Amounts in millions)                                Q4 13    Q3 13    Q4 12
Variable Annuities                                   $ 8,020  $ 7,966  $ 8,095
Guaranteed Investment Contracts, Funding Agreements
         Backing Notes and Funding Agreements          896      1,036    2,153

International Protection Segment

International Protection reported operating earnings of $13 million, compared
with $4 million in the prior quarter and $8 million in the prior year. Results
in the current quarter reflected $10 million of favorable adjustments,
including $8 million of favorable taxes primarily from a tax liability
correction. The business continues to be impacted by the slow consumer lending
environment in Europe and high unemployment in Southern Europe continues to
keep losses elevated. At quarter end, the lifestyle protection business had a
regulatory capital ratio of approximately 332 percent^4, well in excess of
regulatory requirements. Dividends of $24 million were paid to the holding
company through December 31, 2013.

Runoff Segment

The Runoff segment's net operating income was $19 million, compared with $25
million in the prior quarter and $8 million in the prior year. Results in the
current quarter included favorable equity market conditions and more favorable
investment income versus the prior quarter and prior year. Results in the
prior quarter reflected more favorable taxes. 

Corporate and Other

Corporate and Other's net operating loss was $65 million, compared with $88
million in the prior quarter and $61 million in the prior year. Results in the
prior quarter included an unfavorable adjustment of $20 million, including $18
million from a correction of prior periods, related to non-deductible stock
compensation expense resulting from cancellations.

Investment Portfolio Performance

Net investment income increased to $835 million, compared to $801 million in
the prior quarter primarily from favorable limited partnership performance,
higher volume of assets from increased annuity sales and favorable foreign
exchange. The reported yield for the current quarter was approximately 4.8
percent. The core yield^2 was up modestly from the prior quarter at
approximately 4.6 percent.

Net income in the quarter included $15 million of net investment gains, net of
tax, DAC amortization and other items. Total investment impairments, net of
tax, were $3 million in the current quarter and $14 million in the prior year.

Net unrealized investment gains were $0.9 billion, net of tax and other items,
as of December 31, 2013 compared with $2.6 billion as of December 31, 2012 and
$1.1 billion as of September 30, 2013 primarily driven by rising interest
rates. The fixed maturity securities portfolio had gross unrealized investment
gains of $3.3 billion compared with $6.7 billion as of December 31, 2012 and
gross unrealized investment losses of $1.0 billion compared with $0.6 billion
as of December 31, 2012.

Holding Company

Genworth's holding company^6 ended the quarter with approximately $1.4
billion^7 of cash and liquid assets, up $55 million compared to the prior
quarter, from $167 million of dividends received from the operating companies,
partially offset by approximately $90 million of debt interest payments and
$22 million of net other expenses. In December 2013, Genworth Holdings, Inc.
completed a $400 million senior notes offering and the company subsequently
made capital contributions of $300 million to Genworth Mortgage Holdings, LLC
and $100 million to GMICO in anticipation of the higher capital requirements
expected to be imposed by government-owned and GSEs. The holding company
targets maintaining cash balances of at least one and a half times its annual
debt service expense plus a risk buffer of $350 million. After deducting for
the net proceeds from the sale of the wealth management business and cash on
hand at Genworth Holdings, Inc. that will be used to address the remaining
$485 million 2014 debt at maturity or before, cash and highly liquid
securities were approximately $880 million at the end of the quarter.

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,
and financial protection coverages -- and mortgage insurance that helps
consumers achieve home ownership while assisting lenders in managing their
risk and capital.

Genworth 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. Products and services are
offered through financial intermediaries, advisors, independent distributors
and sales specialists. Genworth, 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 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 2013 financial supplement are now
posted on the company's website. Additional information regarding business
results and 2014 business goals and strategic priorities will be posted on the
company's website, http://investor.genworth.com, by 7:30 a.m. on February 5,
2014. Investors are encouraged to review these materials.

Genworth will conduct a conference call on February 5, 2014 at 8 a.m. (ET) to
discuss the quarter's results and provide a progress update on its strategic
priorities, as well as details on its 2014 business goals and outlook. The
conference call will be accessible via telephone and the Internet. The dial-in
number for the conference call is 877 888.4034 or 913 489.5101 (outside the
U.S.); conference ID # 7281168. 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 19, 2014 at 888
203.1112 or 719 457.0820 (outside the U.S.); conference ID # 7281168. The
webcast will also be archived on the company's website for one year.

Use of Non-GAAP Measures

This press release includes the non-GAAP financial measures entitled "net
operating income (loss)" and "operating earnings per share." Operating
earnings per share is derived from net operating income (loss). The chief
operating decision maker evaluates segment performance and allocates resources
on the basis of net operating income (loss). The company defines net operating
income (loss) 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, gains (losses) on the early extinguishment of debt, gains (losses)
on insurance block transactions and infrequent or unusual non-operating items.
Gains (losses) on insurance block transactions are defined as gains (losses)
on the early extinguishment of non-recourse funding obligations, early
termination fees for other financing restructuring and/or resulting gains
(losses) on reinsurance restructuring for blocks of business. 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, the early extinguishment of debt and insurance block transactions
are also excluded from net operating income (loss) 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) if, in
the company's opinion, they are not indicative of overall operating trends.

In the fourth quarter of 2013, the company revised its definition of net
operating income (loss) to exclude gains (losses) on the early extinguishment
of debt and gains (losses) on insurance block transactions to better reflect
the basis on which the performance of its business is internally assessed and
to reflect management's opinion that these measures are not indicative of
overall operating trends. All prior periods presented have been re-presented
to reflect this new definition.

Based on the revised definition of net operating income, the following
transactions were excluded from net operating income for the periods
presented. In the third quarter of 2013, the company paid an after-tax
make-whole expense of approximately $20 million related to the early
redemption of Genworth Holdings' notes that mature in 2015. In the fourth
quarter of 2012, the company repurchased principal of approximately $100
million of Genworth Holdings' notes that mature in June 2014 for an after-tax
loss of $4 million. In the fourth quarter of 2012, the company also
repurchased $20 million of non-recourse funding obligations resulting in an
after-tax gain of approximately $3 million. In the third quarter of 2012, the
company completed a life block transaction resulting in an after-tax loss of
$6 million. In January 2012, the company completed a life block transaction
resulting in an after-tax loss of approximately $41 million.

There were no infrequent or unusual items excluded from net operating income
(loss) during the periods presented other than a $13 million after-tax expense
recorded in the second quarter of 2013 related to restructuring costs.

While some of these items may be significant components of net income (loss)
available to Genworth's common stockholders in accordance with GAAP, the
company believes that net operating income (loss) and measures that are
derived from or incorporate net operating income (loss), including net
operating income (loss) 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) 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) have occurred in the past and could, and in some
cases will, recur in the future. Net operating income (loss) and net operating
income (loss) per common share on a basic and diluted basis are not
substitutes for net income (loss) available to Genworth's common stockholders
or net income (loss) available to Genworth'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) may differ
from the definitions used by other companies.

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's common stockholders for the three and twelve months ended
December 31, 2013 and 2012, as well as for the three months ended September
30, 2013.

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"
and "insurance in force" or "risk in force" which are commonly used in the
insurance industry 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
products; (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; and (6) net written premiums for the lifestyle
protection insurance business. Sales do not include renewal premiums on
policies or contracts written during prior periods. The company considers
annualized first-year premiums/deposits, premium equivalents, new
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.

Management regularly monitors and reports insurance in force and risk in
force. 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 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.

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. Estimated savings related to claims
mitigation activities represent amounts deducted or "curtailed" from claims
due to acts or omissions by the insured or the servicer with respect to the
servicing of an insured loan that is not in compliance with obligations under
its master policy. For non-cure related actions, including presales, the
estimated savings represent the difference between the full claim obligation
and the actual amount paid. Loans subject to the company's loss mitigation
actions, the results of which have been included in the company's reported
estimated loss mitigation savings, are subject to re-default and may result in
a potential claim in future periods, as well as potential future loss
mitigation savings depending on the resolution of the re-defaulted loan. 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.

Management regularly monitors and reports a loss ratio for the company's
businesses. For the mortgage and lifestyle protection insurance businesses,
the loss ratio is the ratio of incurred losses and loss adjustment expenses to
net earned premiums. For the long-term care insurance business, the loss ratio
is the ratio of benefits and other changes in reserves less tabular interest
on reserves less loss adjustment expenses to net earned premiums. The company
considers the loss ratio to be a measure of underwriting performance in these
businessesthat helps to enhance the understanding of the operating
performance of the businesses.

An assumed tax rate of 35percent is utilized in the explanation of certain
specific variancesin operating performance and investment results.

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, but not limited to, 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 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 and required increases to reserve liabilities;
    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 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 the company's deferred tax assets; changes in
    expected morbidity or mortality rates; accelerated amortization of
    deferred acquisition costs and present value of future profits; ability to
    increase premiums on certain in-force and future 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 international 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 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 company's 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 the company's U.S. mortgage lending
    customers; legal actions under the Real Estate Settlement Procedures Act
    of 1974 (RESPA); potential liabilities in connection with the company's
    U.S. contract underwriting services; and the impact on the statutory
    capital and risk-to-capital ratios of the U.S. mortgage insurance business
    from variations in the valuation of affiliate investments;
  oOther risks, including the risk that the company's strategy may not be
    successfully implemented; the company's Capital Plan may not achieve its
    anticipated benefits; adverse market or other conditions might delay or
    impede the minority sale of the company's 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 the company's corresponding tax savings
    are never realized and payments could be accelerated in the event of
    certain changes in control; 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 the impact of the expense
    reduction announced on June 6, 2013 is not as anticipated and the company
    may lose key personnel related to actions like this as well as general
    uncertainty in the timing of the company's turnaround; 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,
                                       2013       2012     2013        2012
Revenues:
Premiums                               $  1,310   $ 1,320  $  5,148    $ 5,041
Net investment income                     835       840       3,271      3,343
Net investment gains (losses)             26        14        (37)       27
Insurance and investment product fees     241       293       1,021      1,229
and other
      Total revenues                      2,412     2,467     9,403      9,640
Benefits and expenses:
Benefits and other changes in policy      1,256     1,401     4,895      5,378
reserves
Interest credited                         186       193       738        775
Acquisition and operating expenses,
net of
 deferrals                             406       272       1,659      1,594
Amortization of deferred acquisition
costs and
 intangibles                           128       144       569        722
Goodwill impairment                       —         —         —          89
Interest expense                          121       124       492        476
      Total benefits and expenses         2,097     2,134     8,353      9,034
Income from continuing operations         315       333       1,050      606
before income taxes
Provision for income taxes                70        73        324        138
Income from continuing operations         245       260       726        468
Income (loss) from discontinued           —         6         (12)       57
operations, net of taxes
Net income                                245       266       714        525
Less: net income attributable to          37        98        154        200
noncontrolling interests
Net income available to Genworth
Financial, Inc.'s
 common stockholders                $  208     $ 168    $  560      $ 325
Income from continuing operations
available to
 Genworth Financial, Inc.'s common
stockholders
 per common share:
      Basic                            $  0.42    $ 0.33   $  1.16     $ 0.55
      Diluted                          $  0.42    $ 0.33   $  1.15     $ 0.54
Net income available to Genworth
Financial, Inc.'s
 common stockholders per common
share:
      Basic                            $  0.42    $ 0.34   $  1.13     $ 0.66
      Diluted                          $  0.41    $ 0.34   $  1.12     $ 0.66
Weighted-average shares outstanding:
      Basic                               494.7     491.9     493.6      491.6
      Diluted                             501.2     493.9     498.7      494.4



Reconciliation of Net Operating Income to Net Income
(Amounts in millions, except per share amounts)
                                 Three             Twelve            Three
                                 months ended      months ended      months
                                                                     ended
                                 December 31,      December 31,      September
                                                                     30,
                                 2013     2012     2013     2012     2013
Net operating income (loss):
U.S. Life Insurance Division
  U.S. Life Insurance segment
   Life Insurance           $ 56     $ 46     $ 173    $ 151    $  54
   Long Term Care             42       7        129      101       41
   Fixed Annuities            21       20       92       82        16
  Total U.S. Life Insurance        119      73       394      334       111
  segment
  Total U.S. Life Insurance        119      73       394      334       111
  Division
Global Mortgage Insurance
Division
  International Mortgage
  Insurance segment
   Canada^3                   44       114      170      234       41
   Australia                  66       62       228      142       61
   Other Countries            (9)      (11)     (37)     (34)      (12)
  Total International Mortgage     101      165      361      342       90
  Insurance segment
  U.S. Mortgage Insurance          6        (32)     37       (138)     (3)
  segment
  Total Global Mortgage            107      133      398      204       87
  Insurance Division
Corporate and Other Division
  International Protection         13       8        24       24        4
  segment
  Runoff segment                   19       8        66       46        25
  Corporate and Other              (65)     (61)     (266)    (205)     (88)
  Total Corporate and Other        (33)     (45)     (176)    (135)     (59)
  Division
Net operating income               193      161      616      403       139
Adjustments to net operating
income:
Net investment gains (losses),
net of taxes and other
  adjustments                      15       2        (11)     (1)       (13)
Goodwill impairment, net of        —        —        —        (86)      —
taxes
Expenses related to                —        —        (13)     —         —
restructuring, net of taxes
Gains (losses) on early
extinguishment of debt, net of     —        (1)      (20)     (1)       (20)
taxes
Gains (losses) on life block       —        —        —        (47)      —
transactions, net of taxes
Income (loss) from discontinued    —        6        (12)     57        2
operations, net of taxes
Net income available to
Genworth Financial, Inc.'s
  common stockholders              208      168      560      325       108
Add: net income attributable to    37       98       154      200       40
noncontrolling interests
Net income                       $ 245    $ 266    $ 714    $ 525    $  148
Net income available to
Genworth Financial, Inc.'s
  common stockholders per
  common share:
   Basic                      $ 0.42   $ 0.34   $ 1.13   $ 0.66   $  0.22
   Diluted                    $ 0.41   $ 0.34   $ 1.12   $ 0.66   $  0.22
Net operating income per common
share:
   Basic                      $ 0.39   $ 0.33   $ 1.25   $ 0.82   $  0.28
   Diluted                    $ 0.38   $ 0.33   $ 1.24   $ 0.82   $  0.28
Weighted-average shares
outstanding:
   Basic                        494.7    491.9    493.6    491.6     494.0
   Diluted                      501.2    493.9    498.7    494.4     499.3



Condensed Consolidated Balance Sheets
(Amounts in millions)
                                                    December 31,  December 31,
                                                    2013          2012
Assets
 Cash, cash equivalents and invested assets         $   73,505    $   78,726
 Deferred acquisition costs                             5,278         5,036
 Intangible assets                                      399           366
 Goodwill                                               867           868
 Reinsurance recoverable                                17,219        17,230
 Other assets                                           639           710
 Separate account assets                                10,138        9,937
 Assets associated with discontinued operations         —             439
     Total assets                                   $   108,045   $   113,312
Liabilities and stockholders' equity
 Liabilities:
  Future policy benefits                            $   33,705    $   33,505
  Policyholder account balances                         25,528        26,262
  Liability for policy and contract claims              7,204         7,509
  Unearned premiums                                     4,107         4,333
  Deferred tax and other liabilities                    4,262         6,746
  Borrowings related to securitization entities         242           336
  Non-recourse funding obligations                      2,038         2,066
  Long-term borrowings                                  5,161         4,776
  Separate account liabilities                          10,138        9,937
  Liabilities associated with discontinued              —             61
  operations
     Total liabilities                                  92,385        95,531
 Stockholders' equity:
  Common stock                                          1             1
  Additional paid-in capital                            12,167        12,127
  Accumulated other comprehensive income (loss):
   Net unrealized investment gains (losses):
     Net unrealized gains (losses) on securities
     not
      other-than-temporarily impaired                914           2,692
     Net unrealized gains (losses) on other-than-
      temporarily impaired securities                12            (54)
   Net unrealized investment gains (losses)             926           2,638
   Derivatives qualifying as hedges                     1,319         1,909
   Foreign currency translation and other               297           655
   adjustments
  Total accumulated other comprehensive income          2,542         5,202
  (loss)
  Retained earnings                                     2,423         1,863
  Treasury stock, at cost                               (2,700)       (2,700)
   Total Genworth Financial, Inc.'s stockholders'       14,433        16,493
   equity
  Noncontrolling interests                              1,227         1,288
   Total stockholders' equity                           15,660        17,781
   Total liabilities and stockholders' equity       $   108,045   $   113,312



Impact of Foreign Exchange on Operating Results^8
Three months ended December 31, 2013
                                         Percentages        Percentages
                                         Including Foreign  Excluding Foreign
                                         Exchange           Exchange^9
 Canada Mortgage Insurance (MI):
 Flow new insurance written                  14     %       20       %
 Flow new insurance written (4Q13 vs.        (17)   %       (17)     %
 3Q13)
 Australia MI:
 Flow new insurance written                  (6)    %       3        %
 Flow new insurance written (4Q13 vs.        13     %       11       %
 3Q13)



Reconciliation of Net Investment Gains (Losses)
(Amounts in millions)
                                  Three          Twelve          Three
                                  months ended   months ended    months ended
                                  December 31,   December 31,    September 30,
                                  2013   2012    2013    2012    2013
Net investment gains (losses),    $ 26   $ 14    $ (37)  $ 27    $     (23)
gross
Adjustments for:
 Deferred acquisition costs and
 other intangible amortization
 and certain
  benefit reserves               —      (10)    32      (22)        6
 Net investment gains (losses)
 attributable to noncontrolling     (2)    —       (13)    (5)         (4)
 interests
 Taxes                              (9)    (2)     7       (1)         8
Net investment gains (losses),
net of taxes and other            $ 15   $ 2     $ (11)  $ (1)   $     (13)
adjustments



Reconciliation of Core Yield to Reported Yield
                                                                                                                  For the
                                                                                                                  three
                                                                                                                  months
                                                                                                                  ended
                                                                                                                  December
                                                                                                                  31,
 (Assets - amounts in billions)                                                                                   2013
 Reported Total Invested Assets and Cash                                                                          $ 72.8
 Subtract:
  Securities lending                                                                                           0.2
  Unrealized gains (losses)                                                                                    2.8
  Derivative counterparty collateral                                                                           0.2
 Adjusted end of period invested assets                                                                           $ 69.6
 Average Invested Assets Used in Reported Yield Calculation                                                       $ 69.5
 Subtract:
  Restricted commercial mortgage loans and other invested assets related to
  securitization entities^10                                                                                 0.3
 Average Invested Assets Used in Core Yield Calculation                                                           $ 69.2
 (Income - amounts in
 millions)
 Reported Net Investment Income                                                                                   $ 835
 Subtract:
  Bond calls and commercial mortgage loan prepayments                                                          8
  Reinsurance^11                                                                                               20
  Other non-core items^12                                                                                      17
  Restricted commercial mortgage loans and other invested assets related to
  securitization entities^10                                                                                 3
 Core Net Investment Income                                                                                       $ 787
 Reported Yield                                                                                                     4.81 %
 Core Yield                                                                                                         4.55 %



   Unless otherwise stated, all references in this press release to net
   income, net income per share, book value, book value per share and
   stockholders' equity should be read as net income available to Genworth's
1  common stockholders, net 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.
   This is a financial measure not calculated based on U.S. Generally Accepted
2  Accounting Principles (Non-GAAP). See the Use of Non-GAAP Measures section
   of this press release for additional information.
   Fourth quarter of 2012 included an after-tax favorable adjustment of $78
3  million associated with the reversal of the accrued liability for exit fees
   related to the government guarantee fund in Canada.
4  Company estimate for the fourth quarter of 2013, due to timing of the
   filing of statutory statements.
5  Percent change excludes the impact of foreign exchange.
   Holding company cash and liquid assets comprises assets held in Genworth
6  Holdings, Inc. (the issuer of outstanding public company debt) which is now
   a subsidiary of Genworth Financial, Inc.
7  Comprises cash and cash equivalents of $1,219 million and U.S. government
   bonds of $150 million.
8  All percentages are comparing the fourth quarter of 2013 to the fourth
   quarter of 2012 unless otherwise stated.
9  The impact of foreign exchange was calculated using the comparable prior
   period exchange rates.
10 Represents the incremental assets and investment income related to
   restricted commercial mortgage loans and other invested assets.
11 Represents imputed investment income related to reinsurance agreements in
   the lifestyle protection insurance business.
12 Includes cost basis adjustments on structured securities, preferred stock
   income and various other immaterial items.

SOURCE Genworth Financial, Inc.

Website: http://www.genworth.com
Contact: Investors: Georgette Nicholas, 804 662.2248,
georgette.nicholas@genworth.com, or Media: Al Orendorff, 804 662.2534,
alfred.orendorff@genworth.com
 
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