Genworth Financial, Inc. (NYSE:GNW) Q4 2020 Earnings Conference Call February 17, 2021 9:00 AM ET Company Participants Tim Owens - Vice President, Investor Relations Tom McInerney - President and Chief Executive Officer Dan Sheehan - Chief Financial Officer and Chief Investment Officer Rohit Gupta - Chief Executive Officer, Genworth Mortgage Insurance Conference Call Participants Ryan Krueger - KBW Joshua Esterov - CreditSights Ryan Gilbert - BTIG Geoffrey Dunn - Dowling & Partners Howard Amster - Horizon G ...

Financial Data and Key Metrics Changes - The company reported strong net income of $418 million and adjusted operating income of $132 million for Q3 2020, driven by the performance of the US mortgage insurance business [12][17]. - Adjusted operating income for US Mortgage Insurance (USMI) was $141 million, a significant improvement from an adjusted operating loss of $3 million in the prior quarter [13][17]. - The company achieved $26.6 billion in new insurance written during the quarter, up 41% year-over-year, primarily due to higher refinance originations [13][21]. Business Line Data and Key Metrics Changes - The USMI business saw a loss ratio of 18% for the quarter, with new primary delinquencies down 66% sequentially [18][20]. - The Australia MI business reported adjusted operating income of $7 million, up from $1 million in the prior quarter but down from $12 million in the prior year [14][24]. - In the US life insurance segment, adjusted operating income was $14 million, up from a loss of $5 million in the prior quarter [15][25]. Market Data and Key Metrics Changes - The Australian economy showed signs of recovery, with a decrease in households utilizing loan deferral programs from 11% to 7% [23]. - The US housing market remained resilient, with improving home prices and a large origination market benefiting the USMI business [18]. Company Strategy and Development Direction - The company is focused on enhancing liquidity and preparing for a potential IPO of its USMI business, contingent on market conditions and the status of the Oceanwide transaction [10][40]. - The multiyear LTC Rate Action Plan (MYRAP) is being executed to stabilize the legacy long-term care insurance business, with $595 million of annualized in-force premiums approved [11][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the closing of the Oceanwide transaction by the end of November, pending regulatory approvals [8][9]. - The company is maintaining a conservative approach to capital management in light of ongoing economic uncertainty due to COVID-19 [14][16]. Other Important Information - The company raised $750 million of debt at the USMI holding company level to address upcoming debt maturities [10]. - The PMIERs sufficiency ratio for USMI was reported at 132%, exceeding $1 billion above published requirements [13][36]. Q&A Session Summary Question: Clarification on Oceanwide closing and potential IPO of USMI - Management indicated that Hony Capital is expected to finalize the $1.8 billion financing in November, with hopes to close the transaction by the end of the month [42]. - If the Oceanwide deal does not close, the company is prepared to launch an IPO for USMI in the first half of next year, subject to market conditions [43]. Question: Status of Hony Capital's funding - Management confirmed that Hony Capital has arranged the necessary funding and is awaiting regulatory approval from NDRC and SAFE [52][55]. Question: Market share and pricing strategy - Management acknowledged a slight decline in market share due to a more conservative approach in price-sensitive areas, but emphasized strong performance in new insurance written [58][62].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |--------------------------------------------------------------------------------------|------------------------------------------ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 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 FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 80-0873306 (State or other ...

Genworth Financial, Inc. (NYSE:GNW) Q2 2020 Earnings Conference Call July 30, 2020 9:00 AM ET Company Participants Tim Owens - Vice President, Investor Relations Tom McInerney - President and Chief Executive Officer Kelly Groh - Chief Financial Officer Kevin Schneider - Chief Operating Officer Dan Sheehan - Chief Investment Officer Conference Call Participants Geoffrey Dunn - Dowling Partners Josh Esterov - CreditSights Mark Palmer - BTIG Operator Good morning, ladies and gentlemen, and welcome to Genworth ...

Financial Performance - Genworth reported a net loss of $441 million, or $0.86 per diluted share, and an adjusted operating loss of $21 million, or $0.04 per diluted share[5] - The U S Life Insurance segment experienced an adjusted operating loss of $5 million, impacted by Life Insurance performance, while LTC benefited from higher mortality indicative of COVID-19[5] - The holding company's cash and liquid assets amounted to $554 million, including $59 million restricted, with $52 million principal amount of 2021 Senior Notes repurchased during the quarter[5] U S Mortgage Insurance (MI) - U S MI saw a robust mortgage origination market with $28 4 billion in New Insurance Written (NIW)[5] - U S MI reported an adjusted operating loss of $3 million, primarily due to higher new delinquencies attributable to the COVID-19 pandemic[5] - U S MI's PMIERS sufficiency ratio was estimated at 143%, which is $1 275 million above requirements[5] - U S MI can withstand over a 5x increase in the delinquency rate prior to exhausting PMIERs excess[30] Australia Mortgage Insurance - Australia MI reported an adjusted operating income of $1 million, but increased losses primarily due to loss reserve strengthening in the current quarter attributable to the COVID-19 pandemic[8] - Flow NIW increased due to ongoing strong customer origination performance with continued low-interest rates, with $4 4 billion in 2Q20, $4 1 billion in 1Q20, and $3 7 billion in 2Q19[19] U S Life Insurance - LTC benefited from higher mortality in the current quarter, impacting active claims, pending claims, and active policies[9] - Fixed Annuities reported $28 million in adjusted operating income, with improvement in equity markets favorably impacting results during the quarter[9] - Estimated pre-tax benefit in 2Q20 from implemented in-force premium rate actions from 2012 through 2Q20 was $183 million[36] Investments - Fixed maturities comprise $63 5 billion or 82% of the total portfolio[60] - The investment portfolio had an unrealized gain position of $8 7 billion as of 2Q20, up from $4 9 billion in the prior quarter[60]

Merger and Acquisition Activities - Genworth Financial's merger agreement with China Oceanwide has a total transaction value of approximately $2.7 billion, equating to $5.43 per share in cash [222]. - The ongoing transaction with China Oceanwide is subject to regulatory approvals, which may delay the closing beyond the anticipated date of June 30, 2020 [215]. - The merger agreement includes provisions for potential termination if closing conditions are not satisfied by June 30, 2020 [224]. - China Oceanwide has secured a financing commitment for debt funding of up to $1.8 billion through Hony Capital to partially finance the acquisition of Genworth [228]. - China Oceanwide and Genworth have agreed on a capital investment plan under which China Oceanwide will contribute an aggregate of $1.5 billion to Genworth following the consummation of the Merger [230]. Financial Performance and Results - Genworth Financial reported a net loss of $66 million for Q1 2020, compared to a net income of $174 million for Q1 2019, reflecting a significant decline in profitability [252]. - Total revenues for Q1 2020 were $1.837 billion, a decrease of 10% compared to $2.044 billion in Q1 2019 [269]. - Adjusted operating income available to Genworth Financial, Inc.'s common stockholders was $33 million for the three months ended March 31, 2020, down from $95 million in the same period of 2019 [286]. - The company experienced a significant decline in net investment gains, reporting a loss of $152 million in Q1 2020 compared to a gain of $75 million in Q1 2019 [269]. - The company recorded net investment gains of $115 million for the three months ended March 31, 2020, compared to net investment losses of $(71) million in the same period of 2019 [286]. Impact of COVID-19 - The company faces risks related to the COVID-19 pandemic, which may impact its business operations and financial performance [215]. - Approximately 30 million Americans filed for unemployment claims through late April 2020, reducing consumer confidence to its lowest level since the 2008 financial crisis [237]. - The company is actively monitoring the impact of COVID-19 on its operations and expects elevated levels of new delinquencies in the coming months due to rising unemployment [255]. - The U.S. mortgage insurance business is experiencing declines in investment valuations and persistency rates due to COVID-19, with expectations of increased delinquencies and capital requirements [239]. - COVID-19 has disrupted the global economy, affecting business operations and consumer behavior, with varying impacts across different geographies [300]. Mortgage Insurance Business - The company is focusing on stabilizing its U.S. life insurance businesses and maximizing opportunities in its mortgage insurance sector [221]. - New insurance written in the U.S. Mortgage Insurance business increased by 86% in Q1 2020 compared to Q1 2019, driven by higher mortgage refinancing originations [255]. - The PMIERs sufficiency ratio for the U.S. mortgage insurance business was over $1.1 billion above the required assets as of March 31, 2020, indicating strong compliance [255]. - The persistency rate of mortgage insurance written on prime-based, individually underwritten residential mortgage loans was 76% in Q1 2020, down from 86% in Q1 2019 [308]. - The loss ratio for mortgage insurance businesses is a measure of underwriting performance, calculated as the ratio of benefits and other changes in policy reserves to net earned premiums [297]. Long-term Care Insurance - The long-term care insurance business improved to an adjusted operating income of $1 million in Q1 2020 from a loss of $20 million in Q1 2019, attributed to higher premiums and reduced benefits [252]. - The company has received 32 filing approvals for premium rate increases in its long-term care insurance business, representing a weighted-average increase of 35% on approximately $130 million in annualized in-force premiums [258]. - Higher mortality rates during COVID-19 could benefit long-term care insurance products, although the overall impact on claims frequency is not expected to increase [376]. - The long-term profitability of long-term care insurance depends on actual experience versus valuation assumptions, with potential adverse effects on financial results if assumptions prove inaccurate [390]. Regulatory and Economic Environment - The company has acknowledged the potential for adverse changes in regulatory requirements affecting its mortgage insurance businesses [218]. - The U.S. Federal Reserve reduced interest rates by 150 basis points during the first quarter of 2020, driving U.S. Treasury yields down approximately 100 to 150 basis points [237]. - The company has suspended sales in several states due to challenges in obtaining satisfactory rate increases on in-force policies, with litigation considered against states refusing actuarially justified rate increases [393]. - The approval process for in-force rate actions varies by state, leading to delays in realizing the benefits of approved rate increases [394]. Investment Portfolio and Liquidity - The carrying value of the investment portfolio as of March 31, 2020, was $70.7 billion, with 84% invested in fixed maturity securities [246]. - Genworth Holdings maintains adequate liquidity options, including cash on hand and potential debt issuance, to address current liquidity needs [249]. - The company continues to monitor cash and liquid investments to ensure obligations can be met under stressed liquidity scenarios [381]. - Genworth Holdings redeemed $397 million of its 7.70% senior notes for a pre-tax loss of $9 million, resulting in a total cash payment of $409 million [259].