Genworth Financial Inc. Files 10-Q for Q1 2024

TL;DR

<b>Genworth Financial Inc. has submitted its Q1 2024 10-Q filing, providing a detailed overview of its financial position and operational activities.</b>

AI Summary

GENWORTH FINANCIAL INC (GNW) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Genworth Financial Inc. filed its 10-Q report for the period ending March 31, 2024. The filing details financial performance and operational aspects of the company. Key disclosures include information on variable annuity MRBs and derivative instruments. The report references specific notes for additional details on financial instruments and policy reserves. Investment strategies include debt/equity in cash flow generating assets and real estate investments.

Why It Matters

For investors and stakeholders tracking GENWORTH FINANCIAL INC, this filing contains several important signals. Investors can assess Genworth's financial health and performance trends through the detailed financial statements and disclosures. The filing offers insights into the company's risk management strategies and its exposure to market fluctuations, particularly concerning its insurance and investment products.

Risk Assessment

Risk Level: medium — GENWORTH FINANCIAL INC shows moderate risk based on this filing. The company's financial performance is subject to market risks and regulatory changes inherent in the insurance and financial services industry, as evidenced by the detailed notes on derivative instruments and policy reserves.

Analyst Insight

Review the detailed notes on derivative instruments and policy reserves to understand potential impacts on future earnings and financial stability.

Key Numbers

• 20240331 — CONFORMED PERIOD OF REPORT (Q1 2024)
• 20240503 — FILED AS OF DATE (Filing Date)

Key Players & Entities

• GENWORTH FINANCIAL INC (company) — FILER
• 0001276520 (company) — CENTRAL INDEX KEY
• LIFE INSURANCE (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 11011 WEST BROAD STREET (company) — BUSINESS ADDRESS STREET 1
• GLEN ALLEN (company) — BUSINESS ADDRESS CITY
• VA (company) — BUSINESS ADDRESS STATE
• 23060 (company) — BUSINESS ADDRESS ZIP

FAQ

Risk Factors

• Impact of Derivative Instruments [medium — financial]: The company's financial results are impacted by derivative instruments, with additional information provided in Note 5.
• Fair Value Measurements [medium — financial]: Transfers into and out of Level 3 for fixed maturity securities were related to changes in pricing sources and observability of external information.
• Policy Reserves [medium — financial]: The company manages policy reserves, including those related to variable annuity MRBs and indexed universal life liabilities, with specific details in Note 11.

Glossary

MRBs

Net reinsured asset related to variable annuity MRBs. (Indicates a specific financial instrument managed by the company.)

Level 3

Fair value hierarchy level for securities based on unobservable inputs. (Relevant for understanding the valuation methodology and associated risks of certain assets.)

Embedded Derivatives

Derivatives associated with indexed universal life liabilities and fixed indexed annuity liabilities. (These can impact the company's financial performance and risk exposure.)

Flooring Adjustment

Ensures liability for future policy benefits is not less than zero, particularly for term life insurance. (Affects the valuation of policyholder liabilities.)

Key Financial Figures

• $0.001 — ares of Class A Common Stock, par value $0.001 per share, were outstanding. Table of

Filing Documents

• d792453d10q.htm (10-Q) — 6489KB
• d792453dex101.htm (EX-10.1) — 44KB
• d792453dex102.htm (EX-10.2) — 44KB
• d792453dex311.htm (EX-31.1) — 6KB
• d792453dex312.htm (EX-31.2) — 6KB
• d792453dex321.htm (EX-32.1) — 4KB
• d792453dex322.htm (EX-32.2) — 4KB
• g792453g00a01.jpg (GRAPHIC) — 55KB
• 0001193125-24-129906.txt (&nbsp;) — 30928KB
• gnw-20240331.xsd (EX-101.SCH) — 114KB
• gnw-20240331_cal.xml (EX-101.CAL) — 85KB
• gnw-20240331_def.xml (EX-101.DEF) — 959KB
• gnw-20240331_lab.xml (EX-101.LAB) — 921KB
• gnw-20240331_pre.xml (EX-101.PRE) — 1020KB
• d792453d10q_htm.xml (XML) — 9124KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements : Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2024 and 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 Note 1 — Business and Basis of Presentation 8 Note 2 — Accounting Changes 9 Note 3 — Earnings Per Share 10 Note 4 — Investments 11 Note 5 — Derivative Instruments 24 Note 6 — Fair Value of Financial Instruments 29 Note 7 — Deferred Acquisition Costs 49 Note 8 — Future Policy Benefits 49 Note 9 — Policyholder Account Balances 54 Note 10 — Additional Insurance Liabilities 57 Note 11 — Market Risk Benefits 58 Note 12 — Separate Accounts 60 Note 13 — Liability for Policy and Contract Claims 60 Note 14 — Income Taxes 62 Note 15 — Segment Information 62 Note 16 — Commitments and Contingencies 65 Note 17 — Changes in Accumulated Other Comprehensive Income (Loss) 70 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 72 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 111 Item 4.

Controls and Procedures

Controls and Procedures 111

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 112 Item 1A.

Risk Factors

Risk Factors 112 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 112 Item 5. Other Information 112 Item 6. Exhibits 113

Signatures

Signatures 114 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item1.

Financial Statements

Financial Statements GENWORTH FINANCIAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in millions, except par value and share amounts) March 31, 2024 December 31, 2023 (Unaudited) Assets Investments: Fixed maturity securities available-for-sale, at fair value (amortized cost of $ 49,281 and $ 49,365 , respectively, and allowance for credit losses of $ 7 as of March 31, 2024 and December 31, 2023) $ 46,065 $ 46,781 Equity securities, at fair value 427 396 Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $ 4 as of March 31, 2024 and December 31, 2023) 6,748 6,829 Less: Allowance for credit losses ( 29 ) ( 27 ) Commercial mortgage loans, net 6,719 6,802 Policy loans 2,219 2,220 Limited partnerships 2,949 2,821 Other invested assets 683 731 Total investments 59,062 59,751 Cash, cash equivalents and restricted cash 1,952 2,215 Accrued investment income 707 647 Deferred acquisition costs 1,934 1,988 Intangible assets 197 198 Reinsurance recoverable 18,315 19,054 Less: Allowance for credit losses ( 27 ) ( 29 ) Reinsurance recoverable, net 18,288 19,025 Other assets 516 489 Deferred tax asset 1,839 1,952 Market risk benefit assets 52 43 Separate account assets 4,645 4,509 Total assets $ 89,192 $ 90,817 Liabilities and equity Liabilities: Future policy benefits $ 55,545 $ 57,655 Policyholder account balances 15,315 15,540 Market risk benefit liabilities 528 625 Liability for policy and contract claims 673 652 Unearned premiums 139 149 Other liabilities 1,889 1,768 Long-term borrowings 1,579 1,584 Separate account liabilities 4,645 4,509 Total liabilities 80,313 82,482 Commitments and contingencies (Note 16) Equity: Class A common stock, $ 0.001 par value; 1,500,000,000 shares authorized; 606,168,754 and 603,151,611 shares issued as of March 31, 2024 an