02/06/18

Fourth Quarter Net Income $353 Million And Adjusted Operating Income $326 Million
Full Year Net Income $817 Million And Adjusted Operating Income $696 Million
RICHMOND, Va., Feb. 6, 2018 /PRNewswire/ —

• U.S. Mortgage Insurance (MI) Full Year Adjusted Operating Income Of $311 Million, Increased 24 Percent Compared To 2016
• Strong Loss Ratio And Capital Levels In The Fourth Quarter For U.S. And Canada MI
• Net Favorable Deferred Tax Items Of $456 Million, Or $0.91 Per Diluted Share, Primarily Due To Tax Reform And Improved Business Forecasts
• Annual Review Of Australia MI Premium Earnings Pattern Finalized
  • Updated Premium Recognition Pattern To Reflect Slower Loss Emergence
  • U.S. Generally Accepted Accounting Principles (GAAP) After-Tax Charge Of $152 Million, Or $0.30 Per Diluted Share, For Genworth Financial
  • No Change To Expected Lifetime Profitability Of In-Force
• U.S. GAAP Annual Assumption Review Complete For U.S. Life Insurance
  • Long Term Care Insurance (LTC) Active Life U.S. GAAP Margins Approximately $0.5 To $1.0 Billion
  • Aggregate Unfavorable Items In U.S. Life Insurance Related To Assumption Updates Of $84 Million After-Tax, Or $0.17 Per Diluted Share, Which Include Universal Life Insurance¹ After-Tax Charges Of $74 Million Primarily Reflecting Updates To Mortality And Interest Rate Assumptions
  • Statutory Results And Cash Flow Testing Results For U.S. Life Insurance Companies Expected To Be Made Available At The Time Of The Form 10-K Filing
• Holding Company Cash And Liquid Assets Of $870 Million At December 31, 2017

Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended December 31, 2017. The company reported net income² of $353 million, or $0.70 per diluted share, in the fourth quarter of 2017, compared with a net loss of $122 million, or $0.25 per diluted share, in the fourth quarter of 2016. The adjusted operating income³ for the fourth quarter of 2017 was $326 million, or $0.65 per diluted share, compared with an adjusted operating loss of $137 million, or $0.27 per diluted share, in the fourth quarter of 2016.

Strategic Update
Genworth and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) continue to work towards closing their previously announced proposed transaction as soon as possible.

Genworth and Oceanwide have re-filed their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS). In connection with the new joint voluntary notice, the parties have provided CFIUS with detailed information about an additional data security risk mitigation proposal involving a U.S. third-party service provider. The acceptance of the refiling of a joint voluntary notice by CFIUS triggers a new 30-day review period, which may be followed by an additional 45-day investigation period. Additional information about the CFIUS review process can be found in the definitive proxy statement filed by Genworth with the Securities and Exchange Commission on January 25, 2017.

The parties also continue to engage with the Delaware Department of Insurance (Delaware). The delay in the review process is due to the difference in opinion of the fair market value for Genworth Life and Annuity Insurance Company (GLAIC), which must be agreed upon in order to complete the unstacking transaction. The parties continue to work towards an acceptable solution in order to move forward in the transaction approval process.

In addition to clearance by CFIUS and approval from Delaware, the closing of the proposed transaction remains subject to the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions and other closing conditions. Genworth and Oceanwide continue to be actively engaged with the relevant regulators regarding the pending applications.

Due to the delay in obtaining regulatory approvals and the closing of the proposed transaction, Genworth has decided to pursue a secured debt transaction in order to address its upcoming 2018 debt maturity. More details with respect to the terms and structure of the secured debt transaction will be announced upon the planned launch in the near future.

“Our strong full year and fourth quarter results, as well as the continued progress towards achieving our multi-year LTC rate action plan, demonstrate Genworth’s operational discipline and focus on maximizing long-term value for our stakeholders,” said Tom McInerney, president and CEO of Genworth. “We continue to believe the transaction with Oceanwide represents the greatest and most certain value for our stockholders, and we are pursuing a secured debt transaction to address our 2018 debt obligation, and are continuously evaluating the strategic alternatives we may need to exercise to insulate our U.S. mortgage insurance business from continued ratings pressure.”

LU Zhiqiang, chairman of Oceanwide, added: “Despite the delays in receiving regulatory approvals, Oceanwide continues to work diligently with Genworth towards closing the transaction as soon as possible. We remain committed to the transaction, which would provide Oceanwide with the opportunity to enhance our global insurance expertise and bring better insurance market solutions to China.”
 

Genworth Financial Announces Fourth Quarter 2017 Results
 

#goldencareagent
#genworth
#oceanwide