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  • Investor Materials February 2010 0

    Bank of America Merrill Lynch

    Insurance Conference

    February 23, 2010

    2010 Genworth Financial, Inc. All rights reserved.

  • Investor Materials February 2010 1

    Forward-Looking StatementsThis 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,

    plans,

    believes,

    seeks,

    estimates,

    will

    or words of similar meaning and include, but are not limited to, statements regarding the outlook for Genworth Financial, Inc.s (Genworth) future business and financial performance. Forward-looking statements are based on managements current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, including those discussed in the Appendix, as well as in the risk factors section of Genworths Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission (SEC) on March 2, 2009 and Genworths Quarterly Report on Form 10-Q, filed with the SEC on November 2, 2009. Genworth undertakes no obligation to publicly

    update any forward-looking statement, whether as a result of new information, future developments or otherwise.

    Selected Operating Performance MeasuresAll financial data as of December 31, 2009 unless otherwise noted. For additional information, please see Genworths Fourth Quarter of 2009 earnings release and financial supplement posted at genworth.com.

    For important information regarding selected operating performance measures, see the Appendix.

    Unless otherwise stated, all references in this presentation to operating income should be read as operating income available to Genworths common stockholders.

    This presentation should be used in conjunction with the accompanying audio or call transcript from the Bank Of America/Merrill Lynch Insurance Conference.

    http://www.genworth.com/

  • Investor Materials February 2010 2

    Genworth --

    Specialist Positioning

    HomeownershipInvest Protect RetireProtection And Retirement Mortgage Insurance

    Life InsuranceLong Term Care InsuranceWealth ManagementAnnuities & Supplemental ProductsInternational Lifestyle Protection

    United StatesAustraliaCanadaEuropeSelect New Markets

  • Investor Materials February 2010 3

    Levers For Improved Earnings & Returns

    New Business With Improved Profitability

    Risk Management & Loss Mitigation

    Investment Portfolio Performance Optimization

    Effective Capital Management & Capital Deployment

  • Investor Materials February 2010 4

    Attractive New Business Profitability

    20%+

    New Business Pricing ROE

    High Teens

    Mid/Low Teens

    Actions Resulting In Improved

    Earnings

    Sound Earnings With Improving

    Dynamics

    Canada MIAustralia MI

    U.S. MI

    Good

    Underlying

    Performance

    Life Insurance

    Wealth Management

    Fixed Annuities

    New Business Pricing ROEs Increased As A Result Of Pricing Actions, Changes In Product Structure Or New Product Introductions

    Lifestyle Protection

    Variable Annuities

    Long Term Care

  • Investor Materials February 2010 5

    De-risk

    Diversify

    Reinvest Excess Cash

    Decreased Exposure To Higher Risk SectorsDisciplined Asset-Liability Management Exited Selected Limited Partnerships

    Reducing Larger ExposuresPurchasing In Select SectorsAdding High-Quality Names Where Exposure Low

    Rates Accretive To Portfolio YieldReinvest An Additional $1.0B To $2.0B By Mid-2010Primarily In R&P With Some International

    Optimize Investment Portfolio

  • Investor Materials February 2010 6

    Risk Management & Loss MitigationPrice Increases/Contract Restructuring

    AustraliaLifestyle ProtectionU.S. Mortgage Insurance

    Loan Modifications & RescissionsU.S. Mortgage InsuranceInternational Mortgage Insurance

    Capital OptimizationCapital Efficient New Products

    XXX/AXXX In Force Reserve Funding

    Investment StrategiesDerivatives & Hedging ProgramsSales & Repositioning

  • Investor Materials February 2010 7

    Sound Capital & Liquidity PositionHolding Company

    U.S. Retirement & Protection

    International

    No Long-Term Debt Maturing Until Mid-2011

    Current Cash: $1.1B1

    --

    Increased Significantly In 2009

    Statutory Earnings Build & Debt Market Opportunities

    Flexibility With 57.5% Stake In GNW MI Canada --

    No Current Plans To Monetize

    U.S. Mortgage Insurance

    RBC Ratio ~390%2

    Dividend Source In 11

    Self-Contained Capital Plan

    RTC Ratio 14.6:12

    Stacking Options Available

    Sound Capital Ratios

    Excess Capital Build

    Dividend Source In 10

    1As Of February 1, 20102As of December 31, 2009; Estimate Based On Timing Of Statutory Filings

  • Investor Materials February 2010 8

    Targeting GNW 10%+ Operating ROE By 12

    Levels Perspectives On ROE Targets4Q091

    International 12%Return To Mid Teens Steadily Through 2012High Teens Longer Term

    Retirement & Protection 7%

    Return To 10% ROE By 2012Low/Mid-Teens Longer Term

    U.S. MI (22)%Qtrly. Op Income Positive By Mid 1120%+ ROE Business Model Over Time

    14Q09 Annualized

  • Investor Materials February 2010 9

    The Case For GenworthWell Positioned For Sound Growth & Market Recovery

    Strong Capital & Liquidity

    Active Risk Management & Loss Mitigation

    International Strength & Improving U.S. Retirement & Protection

    U.S. MI Progression With Self-Contained Capital Plan

    Optimizing Investment Portfolio & Cash Reinvestment

    Clear Path For Earnings Expansion & ROE Growth

  • Investor Materials February 2010 10

    2009Operating Income

    Retirement & Protection Overview($MM)

    Long Term Care

    Solid New Block PerformanceOld Block Rate Increase Lifting ResultsNew Business Market RecoveryCombination Products

    Differentiated Service Driving Strong Flows Annuities1 Targeted New Business Offerings

    Life Insurance

    424

    Main Street FocusSuccessful New Product LaunchesDistribution PenetrationService Ease

    Wealth Management

    1Comprised Of Fee Based & Spread Based Retirement Income

  • Investor Materials February 2010 11

    Source: SRI MacroMonitor 2007. Net Worth Excludes Primary Residence.

    Affluent

    Mass Affluent & Middle Mkt

    Lower Incomes

    Super Affluent Near Retirees

    0.3%

    3%

    45%

    51%

    $50K-$250K Avg. Income

    $285K Avg. Net Worth

    All R&P Products

    Wealth MgmtWorking Families

    U.S. Households Target Consumer Segments

    Main Street Market Focus

    Consumers Desire BalanceProtection & CostAdvice & Control

    Security & Growth

  • Investor Materials February 2010 12

    Main Street Growth Opportunity Opportunity To Double LTC Mkt.

    Adult Population

    Low

    Hig

    hW

    ealth

    Current Addressable

    Market

    43MM

    Goal: Expand Addressable

    Market By 50MM

    Buyers

    7MM

    Younger Older

    Sources: U.S. Census, Insurance Advisory Board

    % Ownership By Family Income

    Median Coverage1.4X 2.1X 2.1X 2.0X

    56%

    84% 87% 90%

  • Investor Materials February 2010 13

    2 4 6 8 10 12 14 16 18 20

    New Life Product Adoption

    Weeks In Market

    Competitive PlatformStrong Submitted Trends

    Older ProductsNew Products

    Total Policies Per Week

    ColonySM

    Term UL & GenGuardTM

    UL

    Submits Exceed Prior Launches

    Good Agency Adoption

    Key Driver Of 2010 Sales

    Strong Brokerage General Agency Relationships --

    500+

    Consistent Mortality Experience

    Cost Efficient Operating Platform~30% Less Than Industry Average

    Service Support & Ease

  • Investor Materials February 2010 14

    300,000

    500,000

    700,000

    900,000

    1,100,000

    1,300,000

    1995 1997 1999 2001 2003 2005 2007 2009

    Long Term Care --

    Leveraging ExpertiseStrong ExpertiseSizable In Force1

    Distribution Leadership

    35 Years Of Morbidity Experience

    Pricing, Product Design & Underwriting Advantages

    Forward Investing Disciplines

    Care Coordination Benefits

    Specialist Career Sales Force

    Independent Channel Wholesaling

    Affinity --

    e.g., AARP

    Growing Group Presence

    Scale AdvantagesProcess More Business Than Six

    Of Top 10 Carriers Combined

    300+ Dedicated Claims Specialists

    1Includes Majority Of LTC Individual Policies

    In F

    orce

    Pol

    icie

    sLabel on chart thru 2009

  • Investor Materials February 2010 15

    Independent Advisor Wealth Management

    353Independent

    Other Channels

    1,391

    12/31/08

    1,038

    Genworth Ranked #2 TAMP1

    Source: Cerrulli Associates

    Industry Assets Under ManagementManaged Account Market

    Open Architecture Platform

    Asset Allocation & Rebalancing

    Marketing & Technology Services

    Broad Value Proposition

    How We Differentiate

    Sailing & Rowing

    Framework

    Operational Ease & Support

    Prac