Genworth Financial Inc · NYSE:GNW
Genworth Financial — Q1 2017 Earnings Presentation
23 slides from Genworth Financial's earnings presentation, May 2, 2017
Slide 1: Earnings Summary First Quarter 2017
Earnings Summary May 2, 2017 First Quarter 2017 Exhibit 99.3
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Genworth 1Q17 Earnings Presentation - May 2, 2017 This presentation contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “anticipates,” “intends
Slide 3: Key Financial Themes For The 1st Quarter
Key Financial Themes For The 1st Quarter Financial Performance U.S. Mortgage Insurance (MI) Strong Performance Continued As First Quarter 2017 Adjusted Operating Income Increased 20% Compared To First Quarter 2016 U.S. MI PMIERS1 Capital Level At 118%, In Excess Of ~$400MM Above Requirements Strong
Slide 4: 1Q17 Results Summary – Genworth Consolidated
1Q17 Results Summary – Genworth Consolidated U.S. MI: 73 Strong Seasonal Improvement In Net Cures & Aging Strong Loss Ratio Performance Canada MI: 36 Higher Earned Premiums From Increased NIW In Recent Years Strong Loss Ratio Performance Australia MI: 13 Seasonally Lower Net Cures & Aging Benefits L
Slide 5: U.S. Mortgage Insurance
U.S. Mortgage Insurance ($MM) ($MM) Benefits/Changes In Policy Reserves Premiums Flow NIW7,40011,1007,600 Loss Ratio24%28%17% Primary Delqs (#)27,60225,70923,019 Primary New Delqs (#)8,7619,5048,456 Primary Paid Claims (#)2,2201,3971,563 Primary Cures (#)10,6028,2019,583 % Of RIF1 2009+270%77%79% Pr
Slide 6: Canada Mortgage Insurance
Flow NIW2,5003,9002,300 Bulk NIW3,2003,7008,000 Canada Mortgage Insurance ($MM) ($MM) Loss Ratio24%18%16% Total Delqs (#)2,0342,0702,082 New Delqs (#)1,2961,2281,248 Paid Claims (#)363393479 Cures (#)728792757 Benefits/Changes In Policy Reserves Premiums Favorable $6MM Premium Impact From Foreign Ex
Slide 7: Australia Mortgage Insurance
Australia Mortgage Insurance ($MM) ($MM) Benefits/Changes In Policy Reserves Premiums Flow NIW4,4005,0004,100 Bulk NIW--1,000 Loss Ratio26%30%35% Total Delqs (#)5,8896,7316,926 New Delqs (#)2,6972,7862,852 Paid Claims (#)280312356 Cures (#)2,0802,5872,301 Favorable $4MM Premium Impact From Foreign E
Slide 8: MI Businesses – Capital Adequacy
MI Businesses – Capital Adequacy1 1Company Estimate For 1Q17, Due To Timing Of The Filing Of Statutory Statements; 2Risk-To-Capital; 3Calculated As Available Assets Divided By Required Assets As Defined Within PMIERs. As of March 31, 2017, December 31, 2016, & March 31, 2016, The PMIERs Sufficiency
Slide 9: 1Q17 Summary – U.S. Life Insurance
1Q17 Summary – U.S. Life Insurance ($MM) Highlights Adjusted Operating Income (Loss) 91 (154) 53 Life Fixed Annuities LTC LTC Existing Claim Experience Favorable Sequentially & Versus Prior Year Higher Reserve Release Sequentially From Additional Reduced Benefit Elections By In Force Policyholders U
Slide 10: Long Term Care Insurance
Benefits & Other Changes In Policy Reserves & Loss Ratio (%) Long Term Care Insurance Results Reflect Low Interest Rate Environment & Variability In Prepayment Speeds, Limited Partnership Performance & Bond Call Income Favorable Existing Claim Experience $57MM In 1Q17 Estimated Pre-Tax Impact From I
Slide 11: LTC In Force Premium Rate Increase
LTC In Force Premium Rate Increase Estimated Adjusted Operating Income From Rate Actions2 ($MM)186255 38599 1Includes All Implemented Rate Actions Since 2012. Earned Premium & Reserve Change Estimates Reflect Certain Simplifying Assumptions That May Vary Materially From Actual Historical Results, In
Slide 12: Life Insurance
Benefits & Other Changes In Policy Reserves Life Insurance Variability In Prepayment Speed Adjustments Impacting Reported Net Investment Income & Yield 4Q16 Reflects Increase Of $208MM Pre-Tax From Annual Assumption Review 1Q16 Reflects $331MM Decrease To Reserves From Initial Impact Of Life Block T
Slide 13: Fixed Annuities
SPDA2 Spread1.63%1.65%1.55% SPIA3 Spread1.03%1.12%0.88% Fixed Annuities 1Net Investment Income Less Interest Credited; 2Single Premium Deferred Annuities; Excludes Fixed Indexed Annuities; 3Single Premium Immediate Annuities; Includes Both Paid & Unpaid Interest Credited; 4Excludes Incurred But Not
Slide 14: Net Investment Income
1Non-GAAP Measure, See Appendix Genworth 1Q17 Earnings Presentation - May 2, 2017 Net Investment Income ($MM) Highlights Net Investment Income GNW Reported Yield4.51%4.50%4.53% GNW Core Yield14.36%4.47%4.48% U.S. Life Ins. Segment Reported Yield5.10%4.79%4.80% Impairments(11)(5)(1) Continued Variabi
Slide 15: Holding Company Cash & Liquid Assets
Variance (99) 1 Holding Company Cash & Liquid Assets Comprise Assets Held In Genworth Holdings, Inc. (The Issuer Of Outstanding Public Debt) Which Is A Wholly-Owned Subsidiary Of Genworth Financial, Inc.; 2 Comprises Cash & Cash Equivalents Of $998MM & U.S. Government Bonds Of $100MM As Of December
Slide 16: Appendix
Appendix Genworth 1Q17 Earnings Presentation - May 2, 2017
Slide 17: Total Genworth Financial, Inc.'s Stockholders' Equity (GAAP)
Total Genworth Financial, Inc.’s Stockholders’ Equity (GAAP) ($MM) 1Q17 4Q16 3Q16 2Q16 1Q16 U.S. MI 2,183 2,070 2,089 2,015 1,814 Canada MI 1,617 1,565 1,601 1,592 1,551 Australia MI 701 651 687 706 773 U.S. Life Insurance 10,943 10,980 12,897 11,868 11,280 LTC1 7,420 7,621 8,957 8,155 7,666 Life In
Slide 18: Use Of Non-GAAP Measures
Use Of Non-GAAP Measures This presentation includes the non-GAAP financial measures entitled “adjusted operating income (loss).” The chief operating decision maker evaluates segment performance and allocates resources on the basis of adjusted operating income (loss). The company defines adjusted ope
Slide 19: Reconciliation Of Net Income (Loss) To Adjusted Operating Income (Loss)
Reconciliation Of Net Income (Loss) To Adjusted Operating Income (Loss) Genworth 1Q17 Earnings Presentation - May 2, 2017 2017 1Q 4Q 1Q NET INCOME (LOSS) AVAILABLE TO GENWORTH FINANCIAL, INC.'S COMMON STOCKHOLDERS 155 $ (122) $ 53 $ Add: net income attributable to noncontrolling interests 61 59 55 N
Slide 20: Reconciliation Of Core Yield To Reported Yield
Reconciliation Of Core Yield To Reported Yield Genworth 1Q17 Earnings Presentation - May 2, 2017 2017 (Assets - amounts in billions) 1Q 4Q 1Q Reported - Total Invested Assets and Cash 74.7 $ 74.4 $ 76.0 $ Subtract: Securities lending 0.3 0.5 0.4 Unrealized gains (losses) 4.6 4.3 6.3 Adjusted end of
Slide 21: Definition Of Selected Operating Performance Measures
Definition Of Selected Operating Performance Measures Management uses selected operating performance measures including ''sales" and "insurance in force" or "risk in force" which are commonly used in the insurance industry as measures of operating performance. Management regularly monitors and repor
Slide 22: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,”
Slide 23: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Genworth 1Q17 Earnings Presentation - May 2, 2017 regulatory and legal risks including: extensive regulation of our businesses and changes in applicable laws and regulations; litigation and regulatory investigations or other actions; dependence on