Genworth Financial Inc · NYSE:GNW
Genworth Financial — Q3 2017 Earnings Presentation
23 slides from Genworth Financial's earnings presentation, Nov 2, 2017
Slide 1: Earnings Summary Third Quarter 2017
Earnings Summary November 2, 2017 Third Quarter 2017 Exhibit 99.3
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Genworth 3Q17 Earnings Presentation - November 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,” “in
Slide 3: Key Financial Themes For The 3rd Quarter
Key Financial Themes For The 3rd Quarter Financial Performance Strong Insurance In Force Growth, Loss Ratio, And Capital Levels For U.S. Mortgage Insurance (MI) U.S. MI PMIERs1 Capital Level At 122%, In Excess Of $500MM Above Requirements Strong Loss Ratio Performance & Capital Levels For Canada MI
Slide 4: 3Q17 Results Summary – Genworth Consolidated
3Q17 Results Summary – Genworth Consolidated U.S. MI: $73MM Insurance In Force Growth And Loss Performance Continue To Drive Strong Results Canada MI: $37MM Higher Earned Premiums From Larger Premium Written In Recent Years Strong Loss Ratio Performance Australia MI: $12MM Stable Performance; Contin
Slide 5: U.S. Mortgage Insurance
U.S. Mortgage Insurance ($MM) ($MM) Benefits/Changes In Policy Reserves Premiums Flow NIW11,3009,80012,800 Loss Ratio20%2%21% Primary Delqs (#)20,50820,67725,803 Primary New Delqs (#)8,7537,7769,609 Primary Paid Claims1 (#)1,2682,0331,561 Primary Cures (#)7,6548,0858,043 % Of RIF2 2009+82%80%75% Pre
Slide 6: Canada Mortgage Insurance
Flow NIW4,4003,7005,300 Bulk NIW6008005,100 Canada Mortgage Insurance ($MM) ($MM) Loss Ratio14%4%24% Total Delqs (#)1,7591,8092,027 New Delqs (#)9739651,252 Paid Claims (#)387428427 Cures (#)636810759 Benefits/Changes In Policy Reserves Premiums Earned Premium Growth Versus The Prior Year From Large
Slide 7: Australia Mortgage Insurance
Australia Mortgage Insurance ($MM) ($MM) Benefits/Changes In Policy Reserves Premiums Flow NIW3,7004,1004,600 Bulk NIW600600- Loss Ratio37%34%42% Total Delqs (#)7,1467,2856,844 New Delqs (#)2,8873,1453,214 Paid Claims (#)376355321 Cures (#)2,6502,4312,462 Earned Premiums Down Versus The Prior Year D
Slide 8: MI Businesses – Capital Adequacy
MI Businesses – Capital Adequacy1 1Company Estimate For 3Q17, Due To Timing Of The Filing Of Statutory Statements; 2Risk-To-Capital; 3Calculated As Available Assets Divided By Required Assets As Defined Within PMIERs. As of June 30, 2017 & September 30, 2016, The PMIERs Sufficiency Ratios Were In Ex
Slide 9: 3Q17 Summary – U.S. Life Insurance Highlights
($MM) Adjusted Operating Income (Loss) (1) 39 (207) Life Fixed Annuities LTC 3Q17 Summary – U.S. Life Insurance Highlights LTC: $(5)MM Less Favorable Claim Terminations, Higher Benefit Payments, And Less Favorable New Claim Experience Sequentially 2Q17 Favorable Reserve Correction Of $13MM After-Tax
Slide 10: Long Term Care Insurance
Benefits & Other Changes In Policy Reserves & Loss Ratio (%) Long Term Care Insurance Net Investment Income Higher Versus Prior Year From Growth In Invested Assets Investment Yield Decline Primarily From Reinvestment In A Low Interest Rate Environment & Inflation Impact On U.S. Government Treasury I
Slide 11: LTC In Force Premium Rate Increase
LTC In Force Premium Rate Increase Estimated Adjusted Operating Income From Rate Actions2 ($MM) 1Includes All Implemented Rate Actions Since 2012. Earned Premium & Reserve Change Estimates Reflect Certain Simplifying Assumptions That May Vary Materially From Actual Historical Results, Including But
Slide 12: Life Insurance
Benefits & Other Changes In Policy Reserves Life Insurance Results Reflect Reinvestment In A Low Interest Rate Environment & Lower Prepayment Speed Adjustments Unfavorable Mortality Versus Prior Quarter And Year 3Q17 Includes A Negative $30MM Impact Related To Model Refinements Reflects Run-Off Bloc
Slide 13: Fixed Annuities
SPDA2 Spread1.56%1.55%1.61% SPIA3 Spread0.89%1.19%1.16% Fixed Annuities 1Net Investment Income Less Interest Credited; 2Single Premium Deferred Annuities; Excludes Fixed Indexed Annuities; 3Single Premium Immediate Annuities; Includes Both Paid & Unpaid Interest Credited; 4Excludes Incurred But Not
Slide 14: Net Investment Income
1Non-GAAP Measure, See Appendix Genworth 3Q17 Earnings Presentation - November 2, 2017 Net Investment Income ($MM) Highlights Net Investment Income GNW Reported Yield4.52%4.57%4.62% GNW Core Yield14.45%4.47%4.51% U.S. Life Ins. Segment Reported Yield4.79%4.88%4.99% Impairments(1)(2)(2) Yield Decline
Slide 15: Holding Company Cash & Liquid Assets
Genworth 3Q17 Earnings Presentation - November 2, 2017 Variance (29) 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 $
Slide 16: Appendix
Appendix Genworth 3Q17 Earnings Presentation - November 2, 2017
Slide 17: Total Genworth Financial, Inc.'s Stockholders' Equity (GAAP)
Total Genworth Financial, Inc.’s Stockholders’ Equity (GAAP) ($MM) 3Q17 2Q17 1Q17 4Q16 3Q16 U.S. MI 2,365 2,270 2,183 2,070 2,089 Canada MI 1,724 1,676 1,617 1,565 1,601 Australia MI 681 719 701 651 687 U.S. Life Insurance 10,852 10,842 10,943 10,980 12,897 LTC1 7,170 7,328 7,420 7,621 8,957 Life In
Slide 18: Use Of Non-GAAP Measures
Use Of Non-GAAP Measures This presentation includes the non-GAAP financial measure 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 oper
Slide 19: Reconciliation Of Net Income (Loss) To Adjusted Operating Income (Loss)
Reconciliation Of Net Income (Loss) To Adjusted Operating Income (Loss) Genworth 3Q17 Earnings Presentation - November 2, 2017
Slide 20: Reconciliation Of Core Yield To Reported Yield
Reconciliation Of Core Yield To Reported Yield Genworth 3Q17 Earnings Presentation - November 2, 2017
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 3Q17 Earnings Presentation - November 2, 2017 regulatory and legal risks including: extensive regulation of the company's businesses and changes in applicable laws and regulations (including changes to tax laws and regulations); litigatio