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Segment Information | 6 Months Ended
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Jun. 30, 2024
Segment Information | (16) Segment Information We have the following three reportable segments: Enact, comprised primarily of private mortgage insurance products; Long-Term Care Insurance; and Life and Annuities. The products in the Life and Annuities segment include life insurance and fixed and variable annuities, none of which are actively marketed or sold. In addition to our three reportable segments, we also have Corporate and Other, which includes debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, and eliminations of inter-segment transactions. Corporate and Other also includes the results of other businesses that are not individually reportable, such as certain international businesses and start-up results of our CareScout business. We tax our businesses at the U.S. corporate federal income tax rate of 21%. Each segment is then adjusted to reflect the unique tax attributes of that segment, such as permanent differences between U.S. GAAP and tax law. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. See note 15 for a discussion of the effective tax rates used for our segments and Corporate and Other. We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Management evaluates performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of our net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. We exclude net investment gains (losses), changes in fair value of market risk benefits and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating performance. While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, among other key performance indicators, as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments. The following is a summary of revenues for our segments and Corporate and Other for the periods indicated:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
(Amounts in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Enact segment |  | $ | 298 |  |  | $ | 277 |  |  | $ | 590 |  |  | $ | 558 |
Long-Term Care Insurance segment |  |  | 1,011 |  |  |  | 1,143 |  |  |  | 2,116 |  |  |  | 2,241 |
Life and Annuities segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Life insurance |  |  | 352 |  |  |  | 350 |  |  |  | 706 |  |  |  | 708 |
Fixed annuities |  |  | 70 |  |  |  | 84 |  |  |  | 143 |  |  |  | 169 |
Variable annuities |  |  | 32 |  |  |  | 35 |  |  |  | 66 |  |  |  | 71 |
Life and Annuities segment |  |  | 454 |  |  |  | 469 |  |  |  | 915 |  |  |  | 948 |
Corporate and Other |  |  | 6 |  |  |  | 3 |  |  |  | 12 |  |  |  | (1 | )
Total revenues |  | $ | 1,769 |  |  | $ | 1,892 |  |  | $ | 3,633 |  |  | $ | 3,746 |
The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other for the periods indicated:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
(Amounts in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Net income available to Genworth Financial, Inc.’s common stockholders |  | $ | 76 |  |  | $ | 137 |  |  | $ | 215 |  |  | $ | 259 |
Add: net income attributable to noncontrolling interests |  |  | 34 |  |  |  | 31 |  |  |  | 64 |  |  |  | 63 |
Net income |  |  | 110 |  |  |  | 168 |  |  |  | 279 |  |  |  | 322 |
Less: income (loss) from discontinued operations, net of taxes |  |  | (1 | ) |  |  | 2 |  |  |  | (2 | ) |  |  | 2 |
Income from continuing operations |  |  | 111 |  |  |  | 166 |  |  |  | 281 |  |  |  | 320 |
Less: net income from continuing operations attributable to noncontrolling interests |  |  | 34 |  |  |  | 31 |  |  |  | 64 |  |  |  | 63 |
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |  |  | 77 |  |  |  | 135 |  |  |  | 217 |  |  |  | 257 |
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment (gains) losses, net (1) |  |  | 60 |  |  |  | (41 | ) |  |  | 10 |  |  |  | (30 | )
Changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges (2) |  |  | (10 | ) |  |  | (23 | ) |  |  | (36 | ) |  |  | (9 | )
(Gains) losses on early extinguishment of debt, net (3) |  |  | 7 |  |  |  | — |  |  |  | 6 |  |  |  | (1 | )
Expenses related to restructuring |  |  | 4 |  |  |  | 1 |  |  |  | 11 |  |  |  | 4 |
Taxes on adjustments |  |  | (13 | ) |  |  | 13 |  |  |  | 2 |  |  |  | 8 |
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |  | $ | 125 |  |  | $ | 85 |  |  | $ | 210 |  |  | $ | 229 |
(1) | Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $ 1 million and $ 2 million for the three months ended June 30, 2024 and 2023, respectively, and $ 2 million for both the six months ended June 30, 2024 and 2023.
(2) | Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $ (2 ) million and $ (4 ) million for the three months ended June 30, 2024 and 2023, respectively, and $ (5 ) million and $ (7 ) million for the six months ended June 30, 2024 and 2023, respectively.
(3) | (Gains) losses on early extinguishment of debt are net of the portion attributable to noncontrolling interests of $ 2 million for the three and six months ended June 30, 2024.
|  | Three months ended June 30, |  |  | Six months ended June 30, |
(Amounts in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Enact segment |  | $ | 165 |  |  | $ | 146 |  |  | $ | 300 |  |  | $ | 289 |
Long-Term Care Insurance segment |  |  | (29 | ) |  |  | (43 | ) |  |  | (26 | ) |  |  | (20 | )
Life and Annuities segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Life insurance |  |  | (23 | ) |  |  | (17 | ) |  |  | (56 | ) |  |  | (44 | )
Fixed annuities |  |  | 12 |  |  |  | 10 |  |  |  | 23 |  |  |  | 24 |
Variable annuities |  |  | 10 |  |  |  | 9 |  |  |  | 17 |  |  |  | 18 |
Life and Annuities segment |  |  | (1 | ) |  |  | 2 |  |  |  | (16 | ) |  |  | (2 | )
Corporate and Other |  |  | (10 | ) |  |  | (20 | ) |  |  | (48 | ) |  |  | (38 | )
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |  | $ | 125 |  |  | $ | 85 |  |  | $ | 210 |  |  | $ | 229 |
There were no infrequent or unusual items excluded from adjusted operating income during the periods presented. The following is a summary of total assets for our segments and Corporate and Other as of the dates indicated:
(Amounts in millions) |  | June 30, 2024 |  |  | December 31, 2023 |
Assets: |  |  |  |  |  |  |  |
Enact segment |  | $ | 6,351 |  |  | $ | 6,193 |
Long-Term Care Insurance segment |  |  | 44,559 |  |  |  | 46,195 |
Life and Annuities segment |  |  | 34,829 |  |  |  | 36,517 |
Corporate and Other |  |  | 1,804 |  |  |  | 1,912 |
Total assets |  | $ | 87,543 |  |  | $ | 90,817 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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