XML 37 R25.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Information
 6 Months Ended
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