02/05/19

Fourth Quarter Net Loss Of $329 Million And Adjusted Operating Loss Of $291 Million
Full Year Net Income Of $119 Million And Adjusted Operating Income Of $179 Million
RICHMOND, Va., Feb. 5, 2019 /PRNewswire/ —

• All Required U.S. Insurance Regulatory Approvals Have Been Received For The Proposed Transaction With China Oceanwide Holdings Group Co., Ltd (Oceanwide)
• Oceanwide Merger Agreement Deadline Extended To March 15, 2019; In Discussions With Canada Regarding National Security Matters Including Customer Data Protection
• U.S. Mortgage Insurance (MI) Full Year Adjusted Operating Income Of $490 Million, Increased 58 Percent Compared To 2017
• U.S. MI’s PMIERs¹ Sufficiency Ratio At 129 Percent, In Excess Of $750 Million Above Current Requirements And More Than $550 Million Above The Revised Standards (PMIERs 2.0) Effective March 31, 2019
• Annual U.S. GAAP Assumption Review Completed For U.S. Life Insurance
  • Long Term Care Insurance (LTC) Active Life U.S. GAAP Margins Approximately $0.5 To $1.0 Billion, Consistent With Prior Year
  • After-Tax Increase In LTC Reserves Of $258 Million Related To Changes To Benefit Utilization Rate, Claim Termination Rate And Other Assumptions
  • Universal Life Insurance² After-Tax Charges Of $91 Million Primarily Related To Mortality And Interest Rate Assumption Updates
• Continued Progress Towards Multi-Year LTC Rate Action Plan (MYRAP) With Nearly $400 Million Incremental Annual Premium Increases Approved In 2018, With A Net Present Value (NPV) Of Over $2 Billion
• Cumulative Economic Benefit Of LTC Rate Increases Through Year-End 2018 Equal To Approximately $10.5 Billion, Approximately 65 Percent Of Total Amount Required Under The MYRAP
• Holding Company Cash And Liquid Assets Of $504 Million

Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended December 31, 2018. The company reported a net loss³ of $329 million, or $0.66⁴ per diluted share, in the fourth quarter of 2018, compared with net income of $353 million, or $0.70 per diluted share, in the fourth quarter of 2017. The company reported an adjusted operating loss⁵ of $291 million, or $0.58⁴ per diluted share, in the fourth quarter of 2018, compared with adjusted operating income of $326 million, or $0.65 per diluted share, in the fourth quarter of 2017. Genworth’s effective tax rate for the quarter was approximately 21 percent.

The company reported full year net income of $119 million, or $0.24 per diluted share, in 2018, compared with net income of $817 million, or $1.63 per diluted share, in 2017. The company reported adjusted operating income of $179 million, or $0.36 per diluted share, in 2018, compared with adjusted operating income of $696 million, or $1.39 per diluted share, in 2017. The full year effective tax rate was 34 percent due to foreign operations being taxed at their jurisdictional rates, which are higher than the domestic rate of 21 percent, and also due to the tax impact of forward starting swap gains settled prior to the change in the corporate tax rate, which will continue to be tax effected at 35 percent as they are amortized into net investment income.
 
Genworth Financial Announces Fourth Quarter 2018 Results
 
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