Financial Performance Highlights - Genworth reported a first quarter net income of $62 million, or $0.12 per diluted share, and adjusted operating income of $84 million, or $0.17 per diluted share[9] - The U S life insurance companies' statutory pre-tax income was $192 million, driving a risk-based capital ratio of 295%[10] - Enact segment achieved adjusted operating income of $143 million[9] - Genworth executed $68 million in share repurchases during the quarter, with a total of $182 million executed through April 2023 at an average price less than $5 00 per share[10] Long-Term Care Insurance (LTC) - Continued progress on the LTC multi-year rate action plan, achieving approximately $23 8 billion net present value from in-force rate actions (IFAs) since 2012[9] - LTC adjusted operating loss was $(37) million, reflecting an unfavorable assumption update for implementation timing of certain IFAs[9, 15] - First quarter included $240 million pre-tax of premiums from implemented in-force rate actions, up $30 million versus prior year[38] - In-force rate action approvals in 1Q23 resulted in $50 million in gross incremental premium[44] Segment Performance - Life and Annuities adjusted operating loss was $(4) million[9] - Corporate and Other reported an adjusted operating loss of $(18) million, reflecting higher expenses related to new growth initiatives with CareScout and higher interest expense[9, 18] Portfolio and Capital Management - Fixed maturities comprised $47 4 billion, or 77%, of the total portfolio[22] - Unrealized loss position of $3 1 billion as of 1Q23, down from $4 3 billion in 4Q22[22] - Genworth holding company cash and liquid assets were $233 million at quarter-end[10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32195 GENWORTH FINANCI AL, INC. (Exact name of registrant as specified in its charter) Delaware 80-0873306 (State or other jurisdiction of (I.R. ...

Financial Data and Key Metrics Changes - For the full year 2022, net income was $609 million, and adjusted operating income was $633 million or $1.24 per diluted share, exceeding market expectations [10] - In Q4 2022, net income was $175 million and adjusted operating income was $167 million or $0.33 per diluted share [10] - Cash flows from Enact contributed significantly to achieving key milestones and supporting the share repurchase program [11] Business Line Data and Key Metrics Changes - The U.S. Life Insurance segment reported adjusted operating income of $38 million, with $24 million from LTC and $16 million from fixed annuities [21] - LTC adjusted operating income was $24 million, down from $25 million in the prior quarter and $119 million in the prior year, reflecting lower investment income and continued growth in new claims [21] - Fixed annuities reported adjusted operating income of $16 million, compared to $19 million in the prior quarter and $20 million in the prior year [31] Market Data and Key Metrics Changes - Enact's insurance in force increased 10% year-over-year to a record $248 billion, driven by new insurance written and higher persistency [19] - The estimated PMIER sufficiency ratio was 165%, approximately $2.1 billion above published requirements [20] - The U.S. Life Insurance segment's statutory capital and surplus increased from $2.9 billion at the end of 2021 to approximately $3 billion at year-end 2022 [11] Company Strategy and Development Direction - The company aims to invest in growth and return capital to shareholders, with a focus on launching new senior care services under the CareScout brand [39] - A new share repurchase program of up to $350 million was authorized, with $64 million repurchased at an average price of less than $4 per share [7] - The company is pursuing a multiyear rate action plan to stabilize its legacy LTC portfolio, achieving $549 million in annual premium rate increase approvals in 2022 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and flexibility to invest in growth while returning capital to shareholders [6] - The removal of GSE restrictions on Enact is expected to enhance competitiveness and financial conditions [9] - Management highlighted the importance of regulatory support in achieving premium increases for LTC products [53] Other Important Information - The company invested approximately $20 million in CareScout in 2022 and plans an additional $30 million in 2023 [16] - The adoption of the new GAAP accounting standard, LDTI, is expected to result in increased volatility in net income [34][36] - The holding company ended the quarter with $307 million of cash and liquid assets, above the cash target of 2x annual debt service [38] Q&A Session Summary Question: Inquiry about debt repurchase strategy - Management indicated that the focus would be on repurchasing the 2034 senior unsecured notes, with a priority on share buybacks now that debt levels are below the target [41][42] Question: Changes in LTC claim inflation assumptions - Management confirmed that no changes were made to the assumptions or expected approvals in the LTC program, indicating stability in the overall assumptions [44][46] Question: Clarification on LTC premium rate increase assumptions - Management explained that while the cumulative premium rate increase assumption rose to $30.3 billion, the active life reserve margin remained unchanged due to positive impacts from improved regulatory behavior [55][56]

Financial Data and Key Metrics Changes - U.S. GAAP net income for Q3 2022 was $104 million, while adjusted operating income was $159 million or $0.31 per share, compared to $181 million and $176 million respectively in the prior quarter [7][17] - Enact contributed significantly with $156 million in adjusted operating income, while U.S. Life reported $11 million, driven by long-term care (LTC) and fixed annuities [7][18] - The company achieved a critical milestone by reducing holding company debt to $900 million, down from over $3 billion since 2013 [11][16] Business Line Data and Key Metrics Changes - U.S. Life Insurance segment reported adjusted operating income of $11 million, with LTC contributing $25 million and fixed annuities $19 million, offset by a $33 million loss in life insurance [20][26] - The LTC business saw a decrease in adjusted operating income from $34 million in the prior quarter to $25 million, attributed to new claims and claim terminations [20][21] - The Runoff segment reported adjusted operating income of $9 million, compared to $2 million in the prior quarter [28] Market Data and Key Metrics Changes - Enact's insurance in-force increased by 9% year-over-year to $242 billion, driven by new insurance written and higher persistency [18] - The estimated PMIERs sufficiency ratio for Enact was 174%, indicating strong capital levels [19] - The U.S. Life companies had combined pre-tax statutory income of approximately $10 million, an improvement from the previous quarter [8] Company Strategy and Development Direction - The company is focused on long-term growth and shareholder value, with strategic priorities including debt reduction and share buybacks [6][11] - Genworth is preparing to launch a new less capital-intensive LTC Service Navigation and Advice business in 2023, targeting attractive markets with digital technology enhancements [13][14] - The company aims to leverage its 40-plus years of LTC insurance experience to create a unified experience for customers [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing economic uncertainty due to a well-positioned investment portfolio and expected cash flows from Enact [11][36] - The company anticipates a special dividend from Enact in Q4 2022, which will enhance cash flow for growth and shareholder returns [19][36] - Management noted that the impact of the new GAAP accounting standard (LDTI) will not affect cash flows or business strategy [9][30] Other Important Information - The company has achieved $200 million in annual premium rate increase approvals year-to-date through the third quarter, contributing to a cumulative net present value of $21 billion since 2012 [12][24] - The company is in the process of implementing a third legal settlement related to its LTC policies, which is expected to have financial impacts starting in 2023 [25][29] Q&A Session Summary Question: Can you provide insights on long-term care claim severity trends? - Management indicated a return to pre-pandemic behaviors with higher claim severity as individuals move from home care to facilities, viewing this as a temporary trend [40][42] Question: How is healthcare inflation impacting long-term care claims? - Management noted that while short-term inflation is observed, long-term assumptions remain stable, with offsets from rising interest rates [43][44] Question: Regarding capital allocation, have you considered open market purchases of the floating rate bond? - Management explained that while the bond is attractive long-term, current debt service is well covered by Enact dividends, and there are covenants restricting immediate action [46][48][50] Question: What is the current estimate for the MYRAP goal? - Management confirmed the goal is $28.7 billion, with higher interest rates potentially benefiting the overall book of business [52][54] Question: When are peak claim years expected? - Management estimated peak claim years around 2030 to 2032, particularly for the largest blocks of policies [56][57]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Genworth Financial, Inc. as of September 30, 2022, and for the three and nine months then ended [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$85.9 billion** from **$99.2 billion**, primarily due to reduced fair value of fixed maturity securities, leading to a decline in total equity Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2022 (Unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$85,939** | **$99,171** | | Total Investments | $58,490 | $72,278 | | **Total Liabilities** | **$75,890** | **$82,905** | | Long-term borrowings | $1,622 | $1,899 | | **Total Equity** | **$10,049** | **$16,266** | | Accumulated other comprehensive income (loss) | $(2,765) | $3,861 | | Retained earnings | $2,924 | $2,490 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income available to common stockholders decreased to **$104 million** in Q3 2022 from **$314 million** in Q3 2021, driven by lower total revenues and net investment losses Income Statement Summary (in millions, except per share data) | Metric | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,839 | $2,070 | $5,612 | $6,096 | | Net Investment Gains (Losses) | $(69) | $88 | $(33) | $191 | | Income from Continuing Operations | $134 | $306 | $535 | $725 | | Net Income Available to Stockholders | $104 | $314 | $434 | $741 | | Diluted EPS (Net Income) | $0.20 | $0.61 | $0.85 | $1.44 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$645 million** for the nine months ended September 30, 2022, while net cash used by financing activities was **$(1,107) million** Cash Flow Summary for Nine Months Ended Sep 30 (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $645 | $290 | | Net Cash from Investing Activities | $452 | $469 | | Net Cash used by Financing Activities | $(1,107) | $(1,478) | | **Net Change in Cash** | **$(10)** | **$(719)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, segment information, investments, and derivatives, highlighting an expected **$12.0 billion to $13.0 billion** decrease in AOCI due to new long-duration insurance contract accounting guidance - The company operates through three segments: Enact (mortgage insurance), U.S. Life Insurance (long-term care, life, fixed annuities), and Runoff (discontinued products)[27](index=27&type=chunk) - A new accounting standard for long-duration insurance contracts, effective January 1, 2023, is expected to have a significant impact. The company estimates a decrease in accumulated other comprehensive income (AOCI) for its long-term care business of approximately **$12.0 billion to $13.0 billion** as of the transition date (Jan 1, 2021), primarily due to remeasuring liabilities at a lower discount rate[36](index=36&type=chunk)[37](index=37&type=chunk) - The company's Board authorized a **$350 million** share repurchase program in May 2022. As of September 30, 2022, **$34 million** had been spent to repurchase **8,980,350 shares**[31](index=31&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=75&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, strategic priorities including debt reduction and Enact's value, and the impact of macroeconomic factors on operations and liquidity [Strategic Update](index=78&type=section&id=Strategic%20Update) Genworth achieved its debt reduction goal, bringing public debt to **$900 million**, and continued its **$350 million** share repurchase program while advancing long-term care rate actions - Achieved strategic priority of reducing Genworth Holdings' public debt to approximately **$1.0 billion**; outstanding debt is now **$900 million** after redeeming the February 2024 notes[272](index=272&type=chunk) - Continued execution of the **$350 million** share repurchase program, with **$34 million** in shares repurchased YTD as of September 30, 2022[272](index=272&type=chunk) - The long-term care insurance in-force rate action plan has achieved an estimated cumulative economic benefit of **$21.0 billion** out of a total expected requirement of **$28.7 billion**[274](index=274&type=chunk) [Consolidated Results of Operations](index=81&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net income and adjusted operating income declined in Q3 2022 and YTD 2022, primarily due to weaker performance in the U.S. Life Insurance segment offsetting strong Enact results Consolidated Financial Results (in millions) | Metric | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Stockholders | $104 | $314 | $434 | $741 | | Adjusted Operating Income | $159 | $239 | $466 | $601 | [Segment Results](index=91&type=section&id=Segment%20Results) Enact reported strong adjusted operating income of **$156 million**, while U.S. Life Insurance declined to **$11 million** due to long-term care challenges Adjusted Operating Income by Segment (in millions) | Segment | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Enact | $156 | $134 | $458 | $395 | | U.S. Life Insurance | $11 | $93 | $28 | $226 | | Runoff | $9 | $11 | $20 | $38 | | Corporate and Other | $(17) | $1 | $(40) | $(58) | | **Total** | **$159** | **$239** | **$466** | **$601** | - Enact's strong performance was driven by a **$63 million** net favorable reserve adjustment in Q3 2022, primarily from better-than-expected cures on COVID-19 related delinquencies[305](index=305&type=chunk)[356](index=356&type=chunk) - U.S. Life Insurance results declined due to higher claim severity and frequency in long-term care, a less favorable impact from in-force rate actions, and lower net investment income[306](index=306&type=chunk)[428](index=428&type=chunk) [Liquidity and Capital Resources](index=139&type=section&id=Liquidity%20and%20Capital%20Resources) Genworth Holdings maintains **$145 million** in liquid assets, has no debt maturities until **2034**, and expects **$150 million** from Enact's special dividend to support its share repurchase program - Genworth Holdings held **$145 million** of unrestricted cash, cash equivalents, and liquid assets as of September 30, 2022[556](index=556&type=chunk) - Genworth Holdings has no debt maturities until **June 2034** after redeeming its February 2024 notes[556](index=556&type=chunk) - Enact Holdings announced a special dividend of **$1.12 per share** and a **$75 million** share repurchase program. Genworth expects to receive approximately **$150 million** from the special dividend[559](index=559&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=152&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) A hypothetical **100 basis point** interest rate increase would decrease fixed maturity securities' fair value by **$3.2 billion**, a reduced sensitivity compared to prior year due to existing portfolio value declines - A hypothetical **100 basis point** increase in interest rates would cause the fair value of the company's fixed maturity securities to decrease by an estimated **$3.2 billion** as of September 30, 2022[591](index=591&type=chunk) - This sensitivity has decreased from an estimated **$4.7 billion** decline as of December 31, 2021, primarily because the portfolio's fair value has already decreased due to rising interest rates in 2022[591](index=591&type=chunk) [Item 4. Controls and Procedures](index=152&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2022, with new internal controls implemented for the upcoming long-duration insurance contracts accounting standard - The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2022[592](index=592&type=chunk)[593](index=593&type=chunk) - New internal controls were executed during the quarter related to the implementation of the new accounting guidance for long-duration insurance contracts, which is effective January 1, 2023[594](index=594&type=chunk) [PART II—OTHER INFORMATION](index=153&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=153&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for details on material pending litigation and regulatory matters, including class action lawsuits related to insurance premium increases - For details on material pending litigation and regulatory matters, the report refers to Note 12 in Part I, Item 1[595](index=595&type=chunk) [Item 1A. Risk Factors](index=153&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors as previously disclosed in its 2021 Annual Report on Form 10-K - There have been no material changes to the company's risk factors as disclosed in the 2021 Annual Report on Form 10-K[596](index=596&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=153&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Genworth repurchased **5,110,856 shares** of common stock in Q3 2022 as part of its **$350 million** share repurchase program, with **$316 million** remaining available Issuer Purchases of Common Stock (Q3 2022) | Period | Total Shares Purchased | Average Price Per Share | Approx. Value Remaining ($M) | | :--- | :--- | :--- | :--- | | July 2022 | 4,034,794 | $3.72 | $320 | | August 2022 | 0 | N/A | $320 | | September 2022 | 1,076,062 | $3.95 | $316 | | **Total Q3** | **5,110,856** | **N/A** | **$316** | - The share repurchases are part of a **$350 million** program authorized by the Board of Directors on May 2, 2022[598](index=598&type=chunk) [Item 6. Exhibits](index=154&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including amended bylaws, compensatory plans, CEO/CFO certifications, and XBRL data files - Exhibits filed include amended bylaws, executive compensation plans, and required CEO/CFO certifications[599](index=599&type=chunk)[600](index=600&type=chunk)

Financial Data and Key Metrics Changes - US GAAP net income for Q2 2022 was $181 million, with adjusted operating income at $176 million or $0.34 per share, compared to $149 million and $0.25 per share in the prior quarter [8][23] - Adjusted operating income from Enact was $167 million, representing a 24% increase from the first quarter [24] - The estimated risk-based capital (RBC) ratio for Genworth Life Insurance Company was 290% at the end of the quarter, slightly down from 296% in the previous quarter [32] Business Line Data and Key Metrics Changes - The US Life Insurance segment reported adjusted operating income of $21 million, driven by $34 million from long-term care (LTC) and $21 million from fixed annuities, offset by a $34 million loss in life insurance [26] - LTC adjusted operating income decreased to $34 million from $59 million in the prior quarter, reflecting lower terminations in claims and a decline in mortality [26][30] - Enact's insurance in-force increased by 9% year-over-year to $238 billion, driven by strong new insurance written and higher persistency [24] Market Data and Key Metrics Changes - The market value of Enact has increased, and it has continued to deliver strong performance despite a slowing housing market [9][10] - Enact's estimated PMIER sufficiency ratio was 166%, approximately $2 billion above published requirements, slightly down from the prior quarter [25] Company Strategy and Development Direction - The company aims to strengthen its financial foundation while creating long-term growth and protecting shareholder value amid economic uncertainty [6][7] - A focus on developing a comprehensive long-term care services strategy, with a consumer-led approach, is underway [16][17] - The company plans to continue deleveraging its balance sheet and returning value to shareholders through share buybacks and potential dividends [11][14][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather economic volatility due to strong capital levels and a conservatively positioned investment portfolio [7][11] - The macroeconomic environment is challenging, characterized by high inflation, rising interest rates, and market volatility, which may impact the economy in the near to medium term [6][7] - The company is optimistic about its long-term care growth strategy and expects to launch pilot programs in select markets [51] Other Important Information - The company repurchased approximately $48 million of its 2024 debt, leaving a balance of $152 million, with plans to retire the remaining debt by the end of Q3 2022 [12][21] - Moody's upgraded the company's rating, reflecting improved financial strength and liquidity [22][13] - The company expects to receive significant returns from its investment in Enact, including a quarterly dividend and potential special dividends [25][35] Q&A Session Summary Question: Intercompany tax attributes exhaustion - Management indicated that the majority of remaining tax attributes will be used in 2022, with exhaustion expected in 2023 [41] Question: AXA-Santander lawsuit recovery sharing - Management stated that significant recoveries are expected if AXA prevails, but specifics on the sharing of recovery remain undetermined [43] Question: Financial impact of Global Care Solutions - Management described the new business as capital-light, focusing on care service navigation and expected to generate income through fees for care plans [45][46] Question: Assessment of intrinsic value for share repurchase - Management clarified that intrinsic value assessment currently focuses on Enact, with no value assigned to the life companies at this time [48]

PART I—FINANCIAL INFORMATION This part details Genworth Financial's unaudited condensed consolidated financial statements, management's analysis, market risk, and controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Genworth Financial's unaudited condensed consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202022%20(Unaudited)%20and%20December%2031%2C%202021) This section presents Genworth Financial's condensed consolidated balance sheets for March 31, 2022, and December 31, 2021 | Metric | March 31, 2022 (Millions) | December 31, 2021 (Millions) | | :---------------------- | :------------------------ | :--------------------------- | | Total Assets | $93,487 | $99,171 | | Total Liabilities | $78,335 | $82,905 | | Total Equity | $15,152 | $16,266 | - Total assets decreased by **$5,684 million**, primarily due to decreases in fixed maturity securities, cash, cash equivalents, restricted cash, and other invested assets, partially offset by increases in deferred acquisition costs and deferred tax assets[9](index=9&type=chunk)[465](index=465&type=chunk)[466](index=466&type=chunk) - Total liabilities decreased by **$4,570 million**, mainly driven by decreases in future policy benefits, policyholder account balances, and other liabilities, partially offset by an increase in derivative liabilities and legal settlement accruals[9](index=9&type=chunk)[467](index=467&type=chunk)[468](index=468&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20for%20the%20three%20months%20ended%20March%2031%2C%202022%20and%202021%20(Unaudited)) This section presents Genworth Financial's condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 | Metric | Three months ended March 31, 2022 (Millions) | Three months ended March 31, 2021 (Millions) | Change (Millions) | Change (%) | | :------------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :---------------- | :--------- | | Total Revenues | $1,892 | $1,985 | $(93) | (5)% | | Total Benefits and Expenses | $1,653 | $1,752 | $(99) | (6)% | | Income from continuing operations before income taxes | $239 | $233 | $6 | 3% | | Net income | $179 | $195 | $(16) | (8)% | | Net income available to Genworth Financial, Inc.'s common stockholders | $149 | $187 | $(38) | (20)% | - Net income available to common stockholders decreased by **20%** year-over-year, primarily due to a loss from discontinued operations in 2022 compared to income in 2021, and an increase in net income attributable to noncontrolling interests[13](index=13&type=chunk)[271](index=271&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20months%20ended%20March%2031%2C%202022%20and%202021%20(Unaudited)) This section presents Genworth Financial's condensed consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2021 | Metric | Three months ended March 31, 2022 (Millions) | Three months ended March 31, 2021 (Millions) | | :------------------------------------------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net income | $179 | $195 | | Total other comprehensive income (loss) | $(1,292) | $(603) | | Total comprehensive loss | $(1,113) | $(408) | | Total comprehensive loss available to Genworth Financial, Inc.'s common stockholders | $(1,102) | $(563) | - Total other comprehensive loss significantly increased to **$(1,292) million** in Q1 2022 from $(603) million in Q1 2021, primarily driven by net unrealized losses on securities without an allowance for credit losses and derivatives qualifying as hedges[15](index=15&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20for%20the%20three%20months%20ended%20March%2031%2C%202022%20and%202021%20(Unaudited)) This section presents Genworth Financial's condensed consolidated statements of changes in equity for the three months ended March 31, 2022 and 2021 | Metric | March 31, 2022 (Millions) | December 31, 2021 (Millions) | | :------------------------------------------------------------------ | :------------------------ | :--------------------------- | | Total Genworth Financial, Inc.'s stockholders' equity | $14,407 | $15,510 | | Noncontrolling interests | $745 | $756 | | Total equity | $15,152 | $16,266 | | Accumulated other comprehensive income (loss) (March 31, 2022) | $2,610 | $3,861 | | Retained earnings (March 31, 2022) | $2,639 | $2,490 | - Total Genworth Financial, Inc.'s stockholders' equity decreased by **$1,103 million** from December 31, 2021, to March 31, 2022, primarily due to a significant other comprehensive loss of $(1,251) million, partially offset by net income of $149 million[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031%2C%202022%20and%202021%20(Unaudited)) This section presents Genworth Financial's condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 | Cash Flow Activity | Three months ended March 31, 2022 (Millions) | Three months ended March 31, 2021 (Millions) | | :------------------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net cash used by operating activities | $(92) | $(247) | | Net cash from investing activities | $138 | $335 | | Net cash used by financing activities | $(326) | $(780) | | Net change in cash, cash equivalents and restricted cash | $(280) | $(692) | - Net cash used by operating activities decreased from **$(247) million** in Q1 2021 to **$(92) million** in Q1 2022, primarily due to lower payments to AXA, partially offset by higher net cash disbursements for derivative contracts[20](index=20&type=chunk)[471](index=471&type=chunk) - Net cash from investing activities decreased from **$335 million** in Q1 2021 to **$138 million** in Q1 2022, mainly due to proceeds from the sale of Genworth Australia in the prior year and net purchases of short-term investments in the current year[20](index=20&type=chunk)[471](index=471&type=chunk) - Net cash used by financing activities decreased from **$(780) million** in Q1 2021 to **$(326) million** in Q1 2022, driven by lower repayment of long-term debt and reduced net withdrawals from investment contracts[20](index=20&type=chunk)[472](index=472&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes explaining Genworth's accounting policies, segment information, investments, derivatives, and other financial disclosures [(1) Formation of Genworth and Basis of Presentation](index=8&type=section&id=(1)%20Formation%20of%20Genworth%20and%20Basis%20of%20Presentation) Genworth Financial operates through Enact, U.S. Life Insurance, and Runoff segments, with unaudited financial statements prepared under U.S. GAAP - Genworth operates through three segments: Enact (mortgage insurance), U.S. Life Insurance (long-term care, traditional life, fixed annuities), and Runoff (variable annuity, variable life, corporate-owned life insurance, funding agreements)[23](index=23&type=chunk) - Corporate and Other activities include debt financing expenses, unallocated corporate income/expenses, inter-segment eliminations, and international mortgage insurance businesses/discontinued operations[24](index=24&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules, requiring estimates and assumptions that may lead to actual results differing from estimates[25](index=25&type=chunk) [(2) Accounting Changes](index=9&type=section&id=(2)%20Accounting%20Changes) Genworth is preparing for new FASB accounting guidance for long-duration insurance contracts, effective January