SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/28/22 Genworth Financial Inc. 10-K 12/31/21 191:54M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-K Annual Report HTML 7.90M 2: EX-10.51 Material Contract HTML 105K 3: EX-10.52 Material Contract HTML 83K 4: EX-10.53 Material Contract HTML 71K 5: EX-10.57 Material Contract HTML 109K 6: EX-10.58 Material Contract HTML 99K 7: EX-10.59 Material Contract HTML 105K 8: EX-10.60 Material Contract HTML 83K 9: EX-21 Subsidiaries List HTML 58K 10: EX-23 Consent of Expert or Counsel HTML 51K 11: EX-24 Power of Attorney HTML 57K 12: EX-31.1 Certification -- §302 - SOA'02 HTML 55K 13: EX-31.2 Certification -- §302 - SOA'02 HTML 55K 14: EX-32.1 Certification -- §906 - SOA'02 HTML 52K 15: EX-32.2 Certification -- §906 - SOA'02 HTML 52K 21: R1 Cover Page HTML 120K 22: R2 Consolidated Balance Sheets HTML 191K 23: R3 Consolidated Balance Sheets (Parenthetical) HTML 70K 24: R4 Consolidated Statements of Income HTML 190K 25: R5 Consolidated Statements of Comprehensive Income HTML 96K 26: R6 Consolidated Statements of Changes in Equity HTML 115K 27: R7 Consolidated Statements of Cash Flows HTML 180K 28: R8 Consolidated Statements of Cash Flows HTML 55K (Parenthetical) 29: R9 Nature of Business and Formation of Genworth HTML 69K 30: R10 Summary of Significant Accounting Policies HTML 175K 31: R11 Earnings (Loss) Per Share HTML 108K 32: R12 Investments HTML 964K 33: R13 Derivative Instruments HTML 274K 34: R14 Deferred Acquisition Costs HTML 70K 35: R15 Intangible Assets HTML 88K 36: R16 Reinsurance HTML 179K 37: R17 Insurance Reserves HTML 117K 38: R18 Liability for Policy and Contract Claims HTML 273K 39: R19 Employee Benefit Plans HTML 64K 40: R20 Borrowings and Other Financings HTML 130K 41: R21 Income Taxes HTML 157K 42: R22 Supplemental Cash Flow Information HTML 53K 43: R23 Stock-Based Compensation HTML 156K 44: R24 Fair Value of Financial Instruments HTML 1.34M 45: R25 Insurance Subsidiary Financial Information and HTML 115K Regulatory Matters 46: R26 Segment Information HTML 411K 47: R27 Quarterly Results of Operations (Unaudited) HTML 189K 48: R28 Commitments and Contingencies HTML 78K 49: R29 Changes in Accumulated Other Comprehensive Income HTML 151K (Loss) 50: R30 Noncontrolling Interests HTML 64K 51: R31 Discontinued Operations HTML 224K 52: R32 Schedule I Genworth Financial, Inc. Summary of HTML 80K Investments-Other Than Investments in Related Parties 53: R33 Schedule II Genworth Financial, Inc. (Parent HTML 192K Company Only) 54: R34 Schedule III Supplemental Insurance Information HTML 146K 55: R35 Summary of Significant Accounting Policies HTML 230K (Policies) 56: R36 Earnings (Loss) Per Share (Tables) HTML 107K 57: R37 Investments (Tables) HTML 983K 58: R38 Derivative Instruments (Tables) HTML 281K 59: R39 Deferred Acquisition Costs (Tables) HTML 67K 60: R40 Intangible Assets (Tables) HTML 90K 61: R41 Reinsurance (Tables) HTML 172K 62: R42 Insurance Reserves (Tables) HTML 114K 63: R43 Liability for Policy and Contract Claims (Tables) HTML 274K 64: R44 Borrowings and Other Financings (Tables) HTML 117K 65: R45 Income Taxes (Tables) HTML 155K 66: R46 Stock-Based Compensation (Tables) HTML 154K 67: R47 Fair Value of Financial Instruments (Tables) HTML 1.32M 68: R48 Insurance Subsidiary Financial Information and HTML 77K Regulatory Matters (Tables) 69: R49 Segment Information (Tables) HTML 404K 70: R50 Quarterly Results of Operations (Unaudited) HTML 188K (Tables) 71: R51 Changes in Accumulated Other Comprehensive Income HTML 152K (Loss) (Tables) 72: R52 Noncontrolling Interests (Tables) HTML 61K 73: R53 Discontinued Operations (Tables) HTML 223K 74: R54 Nature of Business and Formation of Genworth - HTML 92K Additional Information (Detail) 75: R55 Summary of Significant Accounting Policies - HTML 159K Additional Information (Detail) 76: R56 Earning (Loss) Per Share (Detail) HTML 182K 77: R57 Net Investment Income (Detail) HTML 77K 78: R58 Net Investment Gains (Losses) (Detail) HTML 93K 79: R59 Net Investment Allowance for Credit Losses HTML 81K (Detail) 80: R60 Investments - Additional Information (Detail) HTML 103K 81: R61 Credit Losses Recognized in Net Income (Loss) on HTML 59K Debt Securities (Detail) 82: R62 Net Unrealized Gains and Losses on HTML 70K Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) 83: R63 Change in Net Unrealized Gains (Losses) on HTML 82K Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) 84: R64 Change in Net Unrealized Gains (Losses) on HTML 55K Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) 85: R65 Amortized Cost or Cost, Gross Unrealized Gains HTML 168K (Losses), Allowance for Credit Losses and Fair Value of Fixed Maturity Securities Classified as Available-for-Sale (Detail) 86: R66 Gross Unrealized Losses and Fair Value of HTML 142K Investment Securities (Detail) 87: R67 Gross Unrealized Losses and Fair Value of HTML 196K Corporate Securities Based on Industries (Detail) 88: R68 Scheduled Maturity Distribution of Fixed Maturity HTML 96K Securities (Detail) 89: R69 Distribution Across Property Type and Geographic HTML 104K Region for Commercial Mortgage Loans (Detail) 90: R70 Allowance for Credit Losses and Recorded HTML 66K Investment in Commercial Mortgage Loans (Detail) 91: R71 Commercial Mortgage Loans By Year of Origination HTML 188K and Credit Quality Indicator (Detail) 92: R72 Debt-to-Value of Commercial Mortgage Loans by HTML 127K Property Type (Detail) 93: R73 Debt Service Coverage Ratio for Fixed Rate HTML 134K Commercial Mortgage Loans by Property Type (Detail) 94: R74 Schedule of Positions in Derivative Instruments HTML 118K (Detail) 95: R75 Activity Associated with Derivative Instruments HTML 96K (Detail) 96: R76 Schedule of Pre-Tax Income (Loss) Effects of Cash HTML 83K Flow Hedges (Detail) 97: R77 Reconciliation of Current Period Changes, Net of HTML 60K Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) 98: R78 Reconciliation of Current Period Changes, Net of HTML 57K Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) 99: R79 Derivative Instruments - Additional Information HTML 61K (Detail) 100: R80 Schedule of Pre-Tax Gain (Loss) Recognized in Net HTML 73K Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) 101: R81 Additional Information about Derivative Assets and HTML 113K Liabilities Subject to Enforceable Master Netting Arrangement (Detail) 102: R82 Activity Impacting Deferred Acquisition Costs HTML 66K (Detail) 103: R83 Deferred Acquisition Costs - Additional HTML 69K Information (Detail) 104: R84 Intangible Assets (Detail) HTML 67K 105: R85 Intangible Assets - Additional Information HTML 58K (Detail) 106: R86 Activity in Present Value of Future Profits HTML 64K (Detail) 107: R87 Activity in Present Value of Future Profits HTML 54K (Parenthetical) (Detail) 108: R88 Percentage of PVFP Balance Net of Interest HTML 64K Accretion, before Effect of Unrealized Investment Gains or Losses, Estimated to be Amortized Over Next Five years (Detail) 109: R89 Reinsurance - Additional Information (Detail) HTML 90K 110: R90 Net Domestic Life Insurance In-Force (Detail) HTML 64K 111: R91 Effects of Reinsurance on Premiums Written and HTML 89K Earned (Detail) 112: R92 Effects of Reinsurance on Premiums Written and HTML 54K Earned (Parenthetical) (Detail) 113: R93 Reinsurance - Schedule of Reinsurance Recoverable HTML 62K in Allowance for Credit Losses (Detail) 114: R94 Reinsurance - Schedule Of Credit Ratings on HTML 72K Reinsurance Recoverable (Detail) 115: R95 Recorded Liabilities and Major Assumptions HTML 86K Underlying Future Policy Benefits (Detail) 116: R96 Insurance Reserves - Additional Information HTML 105K (Detail) 117: R97 Recorded Liabilities for Policyholder Account HTML 70K Balances (Detail) 118: R98 Information about Variable Annuity Products with HTML 69K Death and Living Benefit Guarantees (Detail) 119: R99 Account Balances of Variable Annuity Contract with HTML 64K Death or Living Benefit Guarantees Invested in Separate Account Investment Options (Detail) 120: R100 Liability for Policy and Contract Claims (Detail) HTML 82K 121: R101 Changes in Liability for Policy and Contract HTML 81K Claims (Detail) 122: R102 Liability for Policy and Contract Claims - HTML 79K Additional Information (Detail) 123: R103 Incurred Claims, Net of Reinsurance, Cumulative HTML 110K Number of Reported Delinquencies and Total of Incurred-But-Not-Reported Liabilities (Detail) 124: R104 Paid Claims Development, Net of Reinsurance HTML 110K (Detail) 125: R105 Average Payout of Incurred Claims by Age (Detail) HTML 76K 126: R106 Employee Benefit Plans - Additional Information HTML 96K (Detail) 127: R107 Borrowings and Other Financings - Long Term HTML 82K Borrowings (Detail) 128: R108 Borrowings and Other Financings - Long Term HTML 80K Borrowings (Parenthetical) (Detail) 129: R109 Borrowings and Other Financings - Additional HTML 175K Information (Detail) 130: R110 Principal Amounts of Long Term Debt Including HTML 68K Senior Notes and Non-recourse Funding by Maturity (Detail) 131: R111 Remaining Contractual Maturity of Agreements HTML 93K (Detail) 132: R112 Components of Income before Income Taxes (Detail) HTML 60K 133: R113 Components of Income Tax Provision (Detail) HTML 79K 134: R114 Income Taxes - Additional Information (Detail) HTML 95K 135: R115 Reconciliation of Federal Statutory Tax Rate to HTML 67K Effective Income Tax Rate (Detail) 136: R116 Components Net Deferred Income Tax Liability HTML 99K (Detail) 137: R117 Reconciliation of Unrecognized Tax Benefits HTML 63K (Detail) 138: R118 Supplemental Cash Flow Information - Additional HTML 57K Information (Detail) 139: R119 Stock-Based Compensation - Additional Information HTML 109K (Detail) 140: R120 Stock-Based Compensation - Summary of Other Equity HTML 63K Awards Valuation Assumptions (Detail) 141: R121 Stock-Based Compensation - Summary of Cash Award HTML 70K Activity (Detail) 142: R122 Rollforward of Share-Based Compensation HTML 77K Arrangement by Share-Based Payment Award, Options, Outstanding (Detail) 143: R123 Stock Option Activity and Other Equity-Based HTML 106K Awards (Detail) 144: R124 Stock-Based Compensation - Summary of Enact HTML 93K Holdings' equity-based awards (Details) 145: R125 Fair Value of Financial Instruments - Additional HTML 98K Information (Detail) 146: R126 Fair Value of Financial Instruments - Summary of HTML 109K Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 (Detail) 147: R127 Assets by Class of Instrument that are Measured at HTML 382K Fair Value on Recurring Basis (Detail) 148: R128 Assets Measured at Fair Value on Recurring Basis HTML 329K and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) 149: R129 Gains and Losses Included in Net Income (Loss) HTML 62K from Assets Measured at Fair Value (Detail) 150: R130 Summary of Significant Unobservable Inputs Used HTML 212K for Fair Value Measurements Classified As Level 3 (Detail) 151: R131 Liabilities by Class of Instrument that are HTML 117K Measured at Fair Value on Recurring Basis (Detail) 152: R132 Liabilities Measured at Fair Value on Recurring HTML 112K Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) 153: R133 Gains and Losses Included in Net (Income) from HTML 63K Liabilities Measured at Fair Value (Detail) 154: R134 Fair Value Financial Instruments Not Required to HTML 113K Be Carried at Fair Value (Detail) 155: R135 Summary of carrying value of limited partnerships HTML 76K and commitments to fund (Detail) 156: R136 Insurance Subsidiary Financial Information and HTML 247K Regulatory Matters - Additional Information (Detail) 157: R137 Schedule of Statutory Accounting Practices HTML 69K (Detail) 158: R138 Segment Information - Additional Information HTML 94K (Detail) 159: R139 Summary of Segments and Corporate and Other HTML 333K Activities (Detail) 160: R140 Summary of Revenues for Segments and Corporate and HTML 90K Other Activities (Detail) 161: R141 Summary of Net Operating Income (Loss) for HTML 200K Segments and Corporate and Other Activities (Detail) 162: R142 Summary of Net Operating Income (Loss) for HTML 56K Segments and Corporate and Other Activities (Parenthetical) (Detail) 163: R143 Schedule of Revenue, Net Income and Assets by HTML 142K Geographic Location (Detail) 164: R144 Quarterly Results of Operations (Detail) HTML 179K 165: R145 Quarterly Results of Operations (Parenthetical) HTML 202K (Detail) 166: R146 Commitments and Contingencies - Additional HTML 79K Information (Detail) 167: R147 Component of Changes in Accumulated Other HTML 93K Comprehensive Income (Loss) (Detail) 168: R148 Changes In Accumulated Other Comprehensive Income HTML 61K (Loss) - Additional Information (Detail) 169: R149 Reclassifications In (Out) of Accumulated Other HTML 102K Comprehensive Income (Loss), Net of Taxes (Detail) 170: R150 Noncontrolling Interests - Summary of Changes in HTML 78K Ownership Interests (Details) 171: R151 Noncontrolling Interests - Additional Information HTML 84K (Detail) 172: R152 Schedule Of Income Loss On Sale Recorded In Our HTML 79K Disposition Group (Detail) 173: R153 Schedule Of Income Loss On Sale Recorded In Our HTML 68K Disposition Group (Parenthetical) (Detail) 174: R154 Assets and Liabilities Held for Sale Related to HTML 106K Australia Mortgage Insurance Business (Detail) 175: R155 Discontinued Operations - Additional Information HTML 104K (Detail) 176: R156 Summary of Operating Results Related to HTML 166K Discontinued Operations (Detail) 177: R157 Summary of Operating Results Related to HTML 61K Discontinued Operations (Parenthetical) (Detail) 178: R158 Discontinued Operations - Summary of Liabilities HTML 89K Related to Discontinued Operations (Detail) 179: R159 Discontinued Operations - Summary of Liabilities HTML 64K Related to Discontinued Operations (Parenthetical) (Detail) 180: R160 Schedule I Genworth Financial, Inc. Summary of HTML 92K Investments-Other than Investments in Related Parties (Detail) 181: R161 Schedule II Genworth Financial, Inc. (Parent HTML 123K Company Only) (Balance Sheets) (Detail) 182: R162 Schedule II Genworth Financial, Inc. (Parent HTML 129K Company Only) (Statements of Income) (Detail) 183: R163 Schedule II Genworth Financial, Inc. (Parent HTML 107K Company Only) (Statements of Comprehensive Income) (Detail) 184: R164 Schedule II Genworth Financial, Inc. (Parent HTML 157K Company Only) (Statements of Cash Flows) (Detail) 185: R165 Schedule II Genworth Financial, Inc. (Parent HTML 84K Company Only) - Additional Information (Detail) 186: R166 Schedule III Genworth Financial, Inc. Supplemental HTML 102K Insurance Information (Schedule of Supplemental Insurance Information) (Detail) 189: XML IDEA XML File -- Filing Summary XML 364K 187: XML XBRL Instance -- d299054d10k_htm XML 18.89M 188: EXCEL IDEA Workbook of Financial Reports XLSX 394K 17: EX-101.CAL XBRL Calculations -- gnw-20211231_cal XML 373K 18: EX-101.DEF XBRL Definitions -- gnw-20211231_def XML 3.93M 19: EX-101.LAB XBRL Labels -- gnw-20211231_lab XML 3.76M 20: EX-101.PRE XBRL Presentations -- gnw-20211231_pre XML 4.02M 16: EX-101.SCH XBRL Schema -- gnw-20211231 XSD 594K 190: JSON XBRL Instance as JSON Data -- MetaLinks 1,057± 1.69M 191: ZIP XBRL Zipped Folder -- 0001193125-22-055674-xbrl Zip 1.14M
Form 10-K |
i ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware |
i 80-0873306 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
i 6620 West Broad Street i Richmond, i Virginia |
i 23230 | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol |
Name of each exchange on which registered | ||
i Class A Common Stock, par value $.001 per share |
i GNW |
i New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Smaller reporting company | i ☐ | |||
Emerging growth company | i ☐ |
Page |
||||||
Item 1. |
5 |
|||||
Item 1A. |
42 |
|||||
Item 1B. |
82 |
|||||
Item 2. |
82 |
|||||
Item 3. |
82 |
|||||
Item 4. |
82 |
|||||
Item 5. |
83 |
|||||
Item 6. |
84 |
|||||
Item 7. |
85 |
|||||
Item 7A. |
165 |
|||||
Item 8. |
171 |
|||||
Item 9. |
311 |
|||||
Item 9A. |
311 |
|||||
Item 9B. |
313 |
|||||
Item 9C. |
313 |
|||||
Item 10. |
314 |
|||||
Item 11. |
318 |
|||||
Item 12. |
318 |
|||||
Item 13. |
318 |
|||||
Item 14. |
318 |
|||||
Item 15. |
319 |
Item 1. |
Business |
• | reducing the debt of Genworth Holdings, the issuer of our outstanding public debt, to approximately $1.0 billion over time; |
• | maximizing the value of Enact; |
• | achieving economic breakeven on and stabilizing the legacy long-term care insurance in-force block; |
• | advancing Genworth’s long-term care growth initiatives; and |
• | returning capital to Genworth Financial shareholders. |
(Amounts in millions) |
Reinsurance recoverable |
|||
UFLIC (1) |
$ | 13,095 | ||
RGA Reinsurance Company |
1,837 | |||
General Reinsurance Corporation |
543 | |||
Riversource Life Insurance Company |
395 | |||
SCOR Global Life USA Reinsurance Company |
281 |
(1) |
We have several significant reinsurance transactions with Union Fidelity Life Insurance Company (“UFLIC”), an affiliate of our former parent, General Electric Company (“GE”), which results in a significant concentration of reinsurance risk. UFLIC’s obligations to us are secured by trust accounts. See note 8 in our consolidated financial statements under “Part II—Item 8—Financial Statements and Supplementary Data” for additional details. |
Company |
A.M. Best rating | |
Genworth Life Insurance Company |
C++ (Marginal) | |
Genworth Life and Annuity Insurance Company |
B (Fair) | |
Genworth Life Insurance Company of New York |
C++ (Marginal) |
• | managing interest rate risk, as appropriate, through monitoring asset durations relative to policyholder and contractholder obligations; |
• | selecting assets based on fundamental, research-driven strategies; |
• | emphasizing fixed-income, low-volatility assets while pursuing active strategies to enhance yield; |
• | maintaining sufficient liquidity to meet unexpected financial obligations; |
• | regularly evaluating our asset class mix and pursuing additional investment classes when prudent; and |
• | continuously monitoring asset quality and market conditions that could affect our assets. |
• | credit risk relating to the uncertainty associated with the continued ability of a given issuer to make timely payments of principal and interest and |
• | interest rate risk relating to the market price and cash flow variability associated with changes in market interest rates. |
As of December 31, |
||||||||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
||||||||||||||||||||||
NRSRO designation |
Amortized cost |
Fair value |
% of total |
Amortized cost |
Fair value |
% of total |
||||||||||||||||||
Public fixed maturity securities |
||||||||||||||||||||||||
AAA |
$ | 6,714 | $ | 8,316 | 20 | % | $ | 7,223 | $ | 9,252 | 21 | % | ||||||||||||
AA |
3,343 | 3,872 | 9 | 3,101 | 3,699 | 8 | ||||||||||||||||||
A |
9,154 | 11,039 | 26 | 9,293 | 11,784 | 26 | ||||||||||||||||||
BBB |
15,422 | 17,789 | 42 | 15,241 | 18,327 | 41 | ||||||||||||||||||
BB |
1,279 | 1,443 | 3 | 1,461 | 1,634 | 4 | ||||||||||||||||||
B |
46 | 42 | — | 76 | 74 | — | ||||||||||||||||||
CCC and lower |
— | — | — | 5 | 6 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total public fixed maturity securities |
$ | 35,958 | $ | 42,501 | 100 | % | $ | 36,400 | $ | 44,776 | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Private fixed maturity securities |
||||||||||||||||||||||||
AAA |
$ | 781 | $ | 821 | 5 | % | $ | 1,043 | $ | 1,103 | 6 | % | ||||||||||||
AA |
1,568 | 1,718 | 9 | 1,826 | 2,020 | 11 | ||||||||||||||||||
A |
4,795 | 5,224 | 29 | 4,937 | 5,482 | 29 | ||||||||||||||||||
BBB |
8,194 | 8,861 | 49 | 7,996 | 8,841 | 47 | ||||||||||||||||||
BB |
1,142 | 1,186 | 7 | 976 | 1,042 | 6 | ||||||||||||||||||
B |
164 | 161 | 1 | 223 | 219 | 1 | ||||||||||||||||||
CCC and lower |
9 | 8 | — | 16 | 12 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total private fixed maturity securities |
$ | 16,653 | $ | 17,979 | 100 | % | $ | 17,017 | $ | 18,719 | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed maturity securities |
||||||||||||||||||||||||
AAA |
$ | 7,495 | $ | 9,137 | 15 | % | $ | 8,266 | $ | 10,355 | 16 | % | ||||||||||||
AA |
4,911 | 5,590 | 9 | 4,927 | 5,719 | 9 | ||||||||||||||||||
A |
13,949 | 16,263 | 27 | 14,230 | 17,266 | 27 | ||||||||||||||||||
BBB |
23,616 | 26,650 | 45 | 23,237 | 27,168 | 44 | ||||||||||||||||||
BB |
2,421 | 2,629 | 4 | 2,437 | 2,676 | 4 | ||||||||||||||||||
B |
210 | 203 | — | 299 | 293 | — | ||||||||||||||||||
CCC and lower |
9 | 8 | — | 21 | 18 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed maturity securities |
$ | 52,611 | $ | 60,480 | 100 | % | $ | 53,417 | $ | 63,495 | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
• | 10% of the insurer’s policyholder surplus as of the immediately prior year end or |
• | the statutory net gain from the insurer’s operations during the prior calendar year. |
• | annually and/or any time when there are significant changes to the risk profile of the insurer or the insurance group, conduct an ORSA to assess the adequacy of our risk management framework, including enhancements and updates to such framework, and current and estimated projected future solvency position; |
• | internally document the process and results of the assessment; and |
• | provide a confidential high-level ORSA Summary Report to our lead domiciliary state, Virginia, and make such report available, upon request, to other domiciliary state regulators within the holding company group. |
• | GMICO to maintain 115% of PMIERs minimum required assets through 2021, 120% during 2022 and 125% thereafter; |
• | Enact Holdings to retain $300 million of its holding company cash that can be drawn down exclusively for its debt service or to contribute to GMICO to meet their regulatory capital needs including PMIERs; and |
• | written approval must be received from the GSEs prior to any additional debt issuance by either GMICO or Enact Holdings. |
• | Our compensation package, including salary, incentive bonus and long-term incentives, aligns employee and stockholder interests, as well as rewards our employees for serving all of our current and future policyholders. |
• | In addition to a competitive compensation program, we also offer our employees benefits such as life and health insurance, paid time off, paid parental leave, financial planning and a retirement savings plan. |
• | We offer a multitude of professional development and career enrichment courses, including in the areas of leadership, professional skills training and industry-specific matters, as well as tuition reimbursement benefits to aid career progression. |
• | Our cultural and demographic-based employee resource groups help to build an inclusive culture through company-wide events, participation in our recruitment efforts and providing valuable input into our hiring strategies. We continue to focus on building a pipeline of talent to create more opportunities for workplace diversity and to support greater representation within our Company. |
• | We champion civic engagement through paid volunteer time for our employees, event sponsorship programs, employee-directed charitable gifts through the Genworth Foundation and through our commitment to environmental sustainability. |
Item 1A. |
Risk Factors |
• | We may be unable to successfully execute our strategic plans to strengthen our financial position and create long-term shareholder value. |
• | COVID-19 could materially adversely affect our financial condition and results of operations. |
• | If our reserves for future policy claims are inadequate, we may be required to increase our reserves, which could have a material adverse effect on our business, results of operations and financial condition. |
• | If the models used in our businesses are inaccurate, it could have a material adverse impact on our business, results of operations and financial condition. |
• | We may be required to increase our reserves as a result of deviations from our estimates and actuarial assumptions or other reasons, which could have a material adverse effect on our business, results of operations and financial condition. |
• | We may be required to accelerate the amortization of deferred acquisition costs and the present value of future profits, which would increase our expenses and reduce profitability. |
• | When we have projected profits in earlier years followed by projected losses in later years (as is currently the case with our long-term care insurance business), we are required to increase our reserve liabilities over time to offset the projected future losses, which could adversely affect our business, results of operations and financial condition. |
• | Our valuation of fixed maturity and equity securities uses methodologies, estimations and assumptions that are subject to change and differing interpretations which could result in changes to investment valuations that may materially adversely affect our business, results of operations and financial condition. |
• | The extent of the benefits Enact Holdings realizes from its future loss mitigation actions or programs may be limited. |
• | Genworth Financial and Genworth Holdings depend on the ability of their respective subsidiaries to pay dividends and make other payments and distributions to each of them and to meet their obligations. |
• | Our sources of capital have become more limited, and under certain conditions we may need to seek additional capital on unfavorable terms. |
• | Adverse rating agency actions have resulted in a loss of business and adversely affected our results of operations, financial condition and business and future adverse rating actions could have a further and more significant adverse impact on us. |
• | Defaults by counterparties to our reinsurance arrangements or to derivative instruments we use to hedge our business risks, or defaults by us on agreements we have with these counterparties, may expose us to risks we sought to mitigate, which could have a material adverse effect on our business, results of operations and financial condition. |
• | Defaults or other events impacting the value of our fixed maturity securities portfolio may reduce our income. |
• | Interest rates and changes in rates could materially adversely affect our business and profitability. |
• | A deterioration in economic conditions or a decline in home prices may adversely affect Enact Holdings’ loss experience. |
• | Our insurance businesses are extensively regulated and changes in regulation may reduce our profitability and limit our growth. |
• | Litigation and regulatory investigations or other actions are common in the insurance business and may result in financial losses and harm our reputation. |
• | An adverse change in our regulatory requirements, including risk-based capital, could have a material adverse impact on our business, results of operations and financial condition. |
• | Changes to the role of the GSEs or to the charters or business practices of the GSEs, including actions or decisions to decrease or discontinue the use of mortgage insurance, could adversely affect our business, financial condition and results of operations. |
• | If Enact Holdings is unable to continue to meet the requirements mandated by PMIERs because the GSEs amend them or the GSEs’ interpretation of the financial requirements requires Enact Holdings to hold amounts of capital that are higher than planned or otherwise, Enact Holdings may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect on our business, results of operations and financial condition. |
• | Enact Holdings’ U.S. mortgage insurance subsidiaries are subject to minimum statutory capital requirements, which if not met or waived, would result in restrictions or prohibitions on them doing business and could have a material adverse impact on our business, financial condition and results of operations. |
• | Changes in regulations that adversely affect the mortgage insurance markets in which Enact Holdings operates could affect its operations significantly and could reduce the demand for mortgage insurance. |
• | Our U.S. life insurance subsidiaries may not be able to continue to mitigate the impact of Regulations XXX or AXXX and, therefore, they may incur higher operating costs that could have a material adverse effect on our business, financial condition and results of operations. |
• | Changes in accounting and reporting standards issued by the Financial Accounting Standards Board or other standard-setting bodies and insurance regulators could materially adversely affect our business, financial condition and results of operations. |
• | If we are unable to retain, attract and motivate qualified employees or senior management, our results of operations, financial condition and business operations may be adversely impacted. |
• | Enact Holdings’ reliance on key customers or distribution relationships could cause a loss of significant sales if one or more of those relationships terminate or are reduced. |
• | Enact Holdings competes with government-owned and government-sponsored enterprises, and this may put them at a competitive disadvantage on pricing and other terms and conditions. |
• | Our business could be adversely impacted from deficiencies in our disclosure controls and procedures or internal control over financial reporting. |
• | Our computer systems may fail or be compromised, and unanticipated problems could materially adversely impact our disaster recovery systems and business continuity plans, which could damage our reputation, impair our ability to conduct business effectively, result in enforcement action or litigation, and materially adversely affect our business, financial condition and results of operations. |
• | Enact Holdings may be unable to maintain or increase capital in its mortgage insurance subsidiaries in a timely manner, on anticipated terms or at all, including through improved business performance, reinsurance or similar transactions, asset sales, securities offerings or otherwise, in each case as and when required. |
• | Our financial condition, results of operations, long-term care insurance products and/or our reputation in the market may be adversely affected if our U.S. life insurance subsidiaries are unable to implement premium rate increases and associated benefit reductions on in-force long-term care insurance policies by enough or quickly enough. |
• | Reinsurance may not be available, affordable or adequate to protect us against losses. |
• | A decrease in the volume of high loan-to-value |
• | The amount of mortgage insurance written by Enact Holdings could decline significantly if alternatives to private mortgage insurance are used or lower coverage levels of mortgage insurance are selected. |
• | Enact Holdings is exposed to potential liabilities in connection with its U.S. contract underwriting services which could have a material adverse effect on our business, financial condition and results of operations. |
• | Enact Holdings’ delegated underwriting program may subject its mortgage insurance subsidiaries to unanticipated claims. |
• | Medical advances, such as genetic research and diagnostic imaging, and related legislation could materially adversely affect the financial performance of our life insurance, long-term care insurance and annuity businesses. |
• | The occurrence of natural or man-made disasters or a public health emergency, including pandemics, could materially adversely affect our business, financial condition and results of operations. |
• | risks on Enact Holdings’ ability to pay dividends as a result of the GSEs amendments to PMIERs in response to COVID-19 as well as additional PMIERs requirements or other restrictions that the GSEs may place on the ability of Enact Holdings to pay dividends. For additional information, see “Genworth Financial and Genworth Holdings depend on the ability of their respective subsidiaries to pay dividends and make other payments and distributions to each of them and to meet their obligations;” |
• | an inability to increase the capital needed in our businesses in a timely manner and on anticipated terms, including through improved business performance, reinsurance or similar transactions, asset sales, debt issuances, securities offerings or otherwise, in each case as and when required; |
• | our strategic priorities change or become more costly or difficult to successfully achieve than currently anticipated or the benefits achieved being less than anticipated; |
• | an inability to identify and contract with a strategic partner regarding a new long-term care insurance business; |
• | an inability to establish a new long-term care insurance business or product offerings due to commercial and/or regulatory challenges; |
• | an inability to reduce costs proportionate with Genworth’s reduced business activity, including as forecasted and in a timely manner; and |
• | adverse tax or accounting charges, including new accounting guidance (that is effective for us on January 1, 2023) related to long-duration insurance contracts. See “—Changes in accounting and reporting standards issued by the Financial Accounting Standards Board or other standard-setting bodies and insurance regulators could materially adversely affect our business, financial condition and results of operations.” |
• | ceasing and/or reducing new sales of our products or limiting the business opportunities we are presented with; |
• | adversely affecting our relationships with distributors, including the loss of exclusivity under certain agreements with our independent sales intermediaries and distribution partners; |
• | causing us to lose key distributors that have ratings requirements that we may no longer satisfy (or resulting in our renegotiation of new, less favorable arrangements with those distributors); |
• | requiring us to modify some of our existing products or services to remain competitive, including reducing premiums we charge or introduce new products or services; |
• | materially increasing the number or amount of policy surrenders, withdrawals and loans by contractholders and policyholders; |
• | requiring us to post additional collateral for our derivatives or hedging agreements tied to the credit ratings of our holding companies; |
• | requiring us to provide support, or to arrange for third-party support, in the form of collateral, capital contributions or letters of credit under the terms of certain of our reinsurance and other agreements, or otherwise securing our commercial counterparties for the perceived risk of our financial strength; |
• | adversely affecting our ability to maintain reinsurance or obtain new reinsurance or obtain it on reasonable pricing and other terms; |
• | increasing the capital charge associated with affiliated investments within certain of our U.S. life insurance businesses thereby lowering capital and RBC of these subsidiaries and negatively impacting our financial flexibility; |
• | regulators requiring certain of our subsidiaries to maintain additional capital, limiting thereby our financial flexibility and requiring us to raise additional capital; |
• | adversely affecting our ability to raise capital; |
• | increased scrutiny by the GSEs and/or by customers, potentially resulting in a decrease in the amount of new insurance written; |
• | increasing our cost of borrowing and making it more difficult to borrow in the public debt markets or enter into a credit agreement; and |
• | making it more difficult to execute our strategic priorities. |
• | licensing companies and agents to transact business; |
• | calculating the value of assets and determining the eligibility of assets to determine compliance with statutory requirements; |
• | mandating certain insurance benefits; |
• | regulating certain premium rates; |
• | reviewing and approving policy forms; |
• | regulating discrimination in pricing and coverage terms and unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements; |
• | establishing and revising statutory capital and reserve requirements and solvency standards; |
• | fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts; |
• | approving premium increases and associated benefit reductions; |
• | evaluating enterprise risk to an insurer; |
• | approving changes in control of insurance companies; |
• | restricting the payment of dividends and other transactions between affiliates; |
• | regulating the types, amounts and valuation of investments; |
• | restricting the types of insurance products that may be offered; and |
• | imposing insurance eligibility criteria. |
• | an increase in the level of home mortgage interest rates and a reduction or loss of mortgage interest deductibility for federal income tax purposes; |
• | implementation of more rigorous mortgage lending regulation; |
• | a decline in economic conditions generally, or in conditions in regional and local economies; |
• | the level of consumer confidence, which may be adversely affected by economic instability, war or terrorist events; |
• | an increase in the price of homes relative to income levels; |
• | adverse population trends, including lower homeownership rates; |
• | high rates of home price appreciation, which for refinancings affect whether refinanced loans have loan-to-value |
• | changes in government housing policy encouraging loans to first-time home buyers. |
• | declining interest rates, which may result in the refinancing of the mortgages underlying the insurance policies with new mortgage loans that may not require mortgage insurance or that Enact Holdings does not insure; |
• | significant appreciation in the value of homes, which causes the size of the mortgage to decrease below 80% of the value of the home and enables the borrower to request cancellation of the mortgage insurance; and |
• | changes in mortgage insurance cancellation requirements or procedures under applicable federal law or mortgage insurance cancellation practices by mortgage lenders and investors. |
• | originating mortgages that consist of two simultaneous loans, known as “simultaneous seconds,” comprising a first mortgage with a loan-to-value loan-to-value |
• | using government mortgage insurance programs; |
• | holding mortgages in the lenders’ own loan portfolios and self-insuring; |
• | using programs, such as those offered by Fannie Mae and Freddie Mac in the United States, requiring lower mortgage insurance coverage levels; |
• | originating and securitizing loans in mortgage-backed securities whose underlying mortgages are not insured with private mortgage insurance or which are structured so that the risk of default lies with the investor, rather than a private mortgage insurer; and |
• | using risk-sharing insurance programs, credit default swaps or similar instruments, instead of private mortgage insurance, to transfer credit risk on mortgages. |
Item 1B. |
Unresolved Staff Comments |
Item 2. |
Properties |
Item 3. |
Legal Proceedings |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|||||||||||||||||||
Genworth Financial, Inc. |
$ | 100.00 | $ | 81.63 | $ | 122.31 | $ | 115.49 | $ | 99.21 | $ | 106.30 | ||||||||||||
S&P 500 ® |
$ | 100.00 | $ | 121.83 | $ | 116.49 | $ | 153.17 | $ | 181.35 | $ | 233.41 | ||||||||||||
S&P 500 Insurance Index |
$ | 100.00 | $ | 116.19 | $ | 103.17 | $ | 133.48 | $ | 132.90 | $ | 175.58 | ||||||||||||
S&P SmallCap 600 Index |
$ | 100.00 | $ | 113.23 | $ | 103.63 | $ | 127.24 | $ | 141.60 | $ | 179.58 | ||||||||||||
S&P SmallCap 600 Insurance Index |
$ | 100.00 | $ | 107.22 | $ | 109.19 | $ | 125.45 | $ | 128.73 | $ | 135.19 |
Item 6. |
Reserved |
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Premiums. |
• | Net investment income. |
• | Net investment gains (losses). |
• | Policy fees and other income. |
on investment contractholder account values, broker/dealer commission revenues, fee revenue from contract underwriting services and other fees. |
• | Benefits and other changes in policy reserves. |
• | Interest credited. |
• | Acquisition and operating expenses, net of deferrals. |
• | Amortization of deferred acquisition costs and intangibles. |
• | Interest expense. non-recourse funding obligations, and interest expense related to the Tax Matters Agreement and certain reinsurance arrangements being accounted for as deposits. |
• | Income taxes. |
Increase (decrease) and |
||||||||||||||||||||||||||||
Years ended December 31, |
percentage change |
|||||||||||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
2020 vs. 2019 |
|||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Premiums |
$ | 3,435 | $ | 3,836 | $ | 3,725 | $ | (401 | ) | (10 | )% | $ | 111 | 3 | % | |||||||||||||
Net investment income |
3,370 | 3,227 | 3,164 | 143 | 4 | % |
63 | 2 | % | |||||||||||||||||||
Net investment gains (losses) |
323 | 492 | 27 | (169 | ) | (34 | )% | 465 | NM | (1) | ||||||||||||||||||
Policy fees and other income |
704 | 729 | 789 | (25 | ) | (3 | )% | (60 | ) | (8 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total revenues |
7,832 | 8,284 | 7,705 | (452 | ) | (5 | )% | 579 | 8 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||
Benefits and other changes in policy reserves |
4,383 | 5,214 | 5,059 | (831 | ) | (16 | )% | 155 | 3 | % | ||||||||||||||||||
Interest credited |
508 | 549 | 577 | (41 | ) | (7 | )% | (28 | ) | (5 | )% | |||||||||||||||||
Acquisition and operating expenses, net of deferrals |
1,223 | 935 | 909 | 288 | 31 | % | 26 | 3 | % | |||||||||||||||||||
Amortization of deferred acquisition costs and intangibles |
377 | 463 | 408 | (86 | ) | (19 | )% | 55 | 13 |
% | ||||||||||||||||||
Interest expense |
160 | 195 | 231 | (35 | ) | (18 | )% | (36 | ) | (16 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total benefits and expenses |
6,651 | 7,356 | 7,184 | (705 | ) | (10 | )% | 172 | 2 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Income from continuing operations before income taxes |
1,181 | 928 | 521 | 253 | 27 | % | 407 | 78 | % | |||||||||||||||||||
Provision for income taxes |
263 | 230 | 139 | 33 | 14 | % | 91 | 65 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Income from continuing operations |
918 | 698 | 382 | 220 | 32 | % | 316 | 83 | % | |||||||||||||||||||
Income (loss) from discontinued operations, net of taxes |
27 | (486 | ) | 148 | 513 | 106 | % | (634 | ) | NM | (1) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income |
945 | 212 | 530 | 733 | NM | (1) |
(318 | ) | (60 | )% | ||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
33 | — | — | 33 | NM | (1) |
— | — | % | |||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
8 | 34 | 187 | (26 | ) | (76 | )% | (153 | ) | (82 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | 904 | $ | 178 | $ | 343 | $ | 726 | NM | (1) |
$ | (165 | ) | (48 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | 885 | $ | 698 | $ | 382 | $ | 187 | 27 | % | $ | 316 | 83 | % | ||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
19 | (520 | ) | (39 | ) | 539 | 104 | % | (481 | ) | NM | (1) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | 904 | $ | 178 | $ | 343 | $ | 726 | NM | (1) |
$ | (165 | ) | (48 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | 904 | $ | 178 | $ | 343 | ||||||
Add: net income from continuing operations attributable to noncontrolling interests |
33 | — | — | |||||||||
Add: net income from discontinued operations attributable to noncontrolling interests |
8 | 34 | 187 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
945 | 212 | 530 | |||||||||
Less: income (loss) from discontinued operations, net of taxes |
27 | (486 | ) | 148 | ||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations |
918 | 698 | 382 | |||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
33 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
885 | 698 | 382 | |||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||
Net investment (gains) losses, net (1) |
(324 | ) | (503 | ) | (38 | ) | ||||||
(Gains) losses on early extinguishment of debt |
45 | 9 | — | |||||||||
Initial loss from life block transaction |
92 | — | — | |||||||||
Expenses related to restructuring |
34 | 3 | 4 | |||||||||
Taxes on adjustments |
33 | 103 | 7 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | 765 | $ | 310 | $ | 355 | ||||||
|
|
|
|
|
|
(1) |
For the years ended December 31, 2021, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million, $(11) million and $(11) million, respectively. |
Increase (decrease) and percentage change |
||||||||||||||||||||||||||||
(Amounts in millions, except per share amounts) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
2020 vs. 2019 |
|||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||||||||||||||
Basic |
$ | 1.75 | $ | 1.38 | $ | 0.76 | $ | 0.37 | 27 | % | $ | 0.62 | 82 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ | 1.72 | $ | 1.36 | $ | 0.75 | $ | 0.36 | 26 | % | $ | 0.61 | 81 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||||||||||||||
Basic |
$ | 1.78 | $ | 0.35 | $ | 0.68 | $ | 1.43 | NM | (1) |
$ | (0.33 | ) | (49 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ | 1.76 | $ | 0.35 | $ | 0.67 | $ | 1.41 | NM | (1) |
$ | (0.32 | ) | (48 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted operating income available to Genworth |
||||||||||||||||||||||||||||
Financial, Inc.’s common stockholders per share: |
||||||||||||||||||||||||||||
Basic |
$ | 1.51 | $ | 0.61 | $ | 0.71 | $ | 0.90 | 147 | % | $ | (0.10 | ) | (14 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ | 1.48 | $ | 0.61 | $ | 0.70 | $ | 0.87 | 143 | % | $ | (0.09 | ) | (13 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Weighted-average common shares outstanding: |
||||||||||||||||||||||||||||
Basic |
506.9 | 505.2 | 502.9 | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Diluted |
514.7 | 511.6 | 509.7 | |||||||||||||||||||||||||
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
Increase (decrease) and percentage change |
||||||||||||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
2020 vs. 2019 |
|||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth |
||||||||||||||||||||||||||||
Financial, Inc.’s common stockholders: |
||||||||||||||||||||||||||||
Enact segment |
$ | 520 | $ | 381 | $ | 568 | $ | 139 | 36 | % | $ | (187 | ) | (33 | )% | |||||||||||||
U.S. Life Insurance segment: |
||||||||||||||||||||||||||||
Long-term care insurance |
445 | 237 | 57 | 208 | 88 | % | 180 | NM | (1) | |||||||||||||||||||
Life insurance |
(269 | ) | (247 | ) | (181 | ) | (22 | ) | (9 | )% | (66 | ) | (36 | )% | ||||||||||||||
Fixed annuities |
91 | 78 | 69 | 13 | 17 | % | 9 | 13 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
U.S. Life Insurance segment |
267 | 68 | (55 | ) | 199 | NM | (1) |
123 | NM | (1) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Runoff segment |
54 | 43 | 56 | 11 | 26 | % | (13 | ) | (23 | )% | ||||||||||||||||||
Corporate and Other activities |
(76 | ) | (182 | ) | (214 | ) | 106 | 58 | % | 32 | 15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | 765 | $ | 310 | $ | 355 | $ | 455 | 147 | % | $ | (45 | ) | (13 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
• | Net income for the years ended December 31, 2021 and 2020 was $904 million and $178 million, respectively, and adjusted operating income was $765 million and $310 million, respectively. Our Enact segment drove our December 31, 2021 consolidated financial results, reporting $520 million of adjusted operating income, an increase of 36% compared to the year ended December 31, 2020. Our U.S. Life Insurance segment reported adjusted operating income of $267 million in 2021 driven mostly by favorable long-term care insurance operating results, which reported adjusted operating income of $445 million for the year ended December 31, 2021, an increase of 88% compared to the year ended
December 31, 2020. These improvements were partially offset by an adjusted operating loss of $269 million in our life insurance business. The following is a summary comparison of adjusted operating income (loss) for our segments and Corporate and Other activities: |
• | Our Enact segment had adjusted operating income of $520 million and $381 million in 2021 and 2020, respectively. |
• | The increase was primarily attributable to lower losses mainly from lower new delinquencies and net favorable reserve adjustments of $17 million in 2021 compared to unfavorable reserve adjustments of $51 million in 2020. |
• | These improvements were partially offset by higher interest expense associated with Enact Holdings’ senior notes issued in August 2020, an increase in operating costs and the minority |
IPO of Enact Holdings that closed in September 2021, which reduced Genworth Financial’s ownership percentage to 81.6% and resulted in lower net income of $33 million in 2021. |
• | Our U.S. Life Insurance segment had adjusted operating income of $267 million and $68 million in 2021 and 2020, respectively. |
• | Long-term care insurance: |
• | Adjusted operating income increased $208 million primarily from higher net investment income, as well as higher premiums and reduced benefits of $212 million in 2021 from in-force rate actions approved and implemented, which included a net favorable impact from policyholder benefit reduction elections made as part of a legal settlement. |
• | The increase was also attributable to favorable development on incurred but not reported (“IBNR”) claims. |
• | The year ended December 31, 2020 included higher claim reserves of $157 million associated with changes to incidence and mortality experience driven by COVID-19, which we believe are temporary. |
• | Life insurance: |
• | The adjusted operating loss increased $22 million mainly attributable to an unfavorable unlocking of $70 million in our universal and term universal life insurance products as part of our annual review of assumptions in the fourth quarter of 2021 compared to a favorable unlocking of $60 million in 2020 (see “—Critical Accounting Estimates” for additional information). |
• | The higher loss was also attributable to higher mortality in 2021 compared to 2020 and higher DAC impairments of $42 million in 2021 in our universal and term universal life insurance products principally due to lower future estimated gross profits. |
• | The higher loss was partially offset by lower lapses primarily associated with our large 20-year term life insurance block written at the end of 2000 as it entered its post-level premium period. |
• | Fixed annuities: |
• | Adjusted operating income increased $13 million mainly attributable to lower reserves and DAC amortization in our fixed indexed annuities driven by favorable changes in interest rates and equity markets. |
• | These improvements were partially offset by lower net spreads in 2021. |
• | Our Runoff segment had adjusted operating income of $54 million and $43 million in 2021 and 2020, respectively. |
• | The increase was primarily due to favorable equity market and interest rate performance in 2021. |
• | These improvements were partially offset by lower investment income in 2021. |
• | The year ended December 31, 2020 included an unfavorable assumption update of $5 million. |
• | Corporate and Other activities had an adjusted operating loss of $76 million and $182 million in 2021 and 2020, respectively. |
• | The decrease in the loss was primarily related to lower interest expense, higher tax benefits of $21 million from a reduction in uncertain tax positions due to the expiration of certain statute of limitations and lower operating costs in 2021. |
• | Net income for the years ended December 31, 2020 and 2019 was $178 million and $343 million, respectively, and adjusted operating income was $310 million and $355 million, respectively. Our U.S. Life Insurance segment reported adjusted operating income of $68 million in 2020 driven mostly by favorable long-term care insurance operating results, which reported adjusted operating income of $237 million for the year ended December 31, 2020, an increase of $180 million compared to the year ended December 31, 2019. This improvement was more than offset by an adjusted operating loss of $247 million in our life insurance business and lower adjusted operating income of $187 million in our Enact segment in 2020 compared to 2019. The following
is a summary comparison of adjusted operating income (loss) for our segments and Corporate and Other activities: |
• | Our Enact segment had adjusted operating income of $381 million and $568 million in 2020 and 2019, respectively. |
• | The decrease was primarily attributable to higher losses largely from new delinquencies driven in large part by a significant increase in borrower forbearance as a result of COVID-19, reserve strengthening of $51 million on existing delinquencies and from lower net benefits from cures and aging of existing delinquencies in 2020. |
• | These decreases were partially offset by higher premiums largely driven by higher insurance in-force and an increase in single premium policy cancellations primarily due to higher mortgage refinancing in 2020. |
• | The year ended December 31, 2019 included favorable reserve adjustments of $18 million mostly associated with lower expected claim rates and a favorable adjustment of $11 million related to our single premium earnings pattern review. |
• | Our U.S. Life Insurance segment had adjusted operating income of $68 million in 2020 compared to an adjusted operating loss of $55 million in 2019. |
• | Long-term care insurance: |
• | Adjusted operating income increased $180 million primarily from an increase in claim terminations driven mostly by higher mortality, as well as favorable development on IBNR claims and higher investment income in 2020. |
• | We also increased reserves by $157 million in 2020 to account for changes to incidence and mortality experience driven by COVID-19. |
• | Life insurance: |
• | The adjusted operating loss increased $66 million predominantly attributable to higher reserves in our 10-year term universal life insurance block as it entered its post-level premium period during the premium grace period, higher mortality in 2020 compared to 2019, higher lapses primarily associated with our large 20-year term life insurance block as it entered its post-level premium period and a DAC impairment of $50 million in 2020. |
• | The higher loss was partially offset by a favorable unlocking of $60 million in our term universal and universal life insurance products as part of our annual review of assumptions in the fourth quarter of 2020 compared to unfavorable unlocking of $107 million in 2019 (see “—Critical Accounting Estimates” for additional information). |
• | Fixed annuities: |
• | Adjusted operating income increased $9 million predominantly from $39 million of unfavorable charges related to loss recognition testing in 2019 that did not recur (see |
“—Critical Accounting Estimates—Future policy benefits” for additional information) and lower interest credited due to block runoff. |
• | These improvements were partially offset by lower net spreads in 2020. |
• | Our Runoff segment had adjusted operating income of $43 million and $56 million in 2020 and 2019, respectively. |
• | The decrease was predominantly due to less favorable equity market performance, an unfavorable assumption update of $5 million and a decline in interest rates in 2020. |
• | These decreases were partially offset by higher net spreads in 2020. |
• | Corporate and Other activities had an adjusted operating loss of $182 million and $214 million in 2020 and 2019, respectively. |
• | The decrease in the loss was primarily related to lower interest expense in 2020. |
• | This improvement was partially offset by lower income tax benefits in 2020. |
• | PMIERs compliance: |
• | Enact’s PMIERs sufficiency ratio was 165% or $2,003 million above the published PMIERs requirements as of December 31, 2021. |
• | As of December 31, 2021, Enact had estimated available assets of $5,077 million against $3,074 million net required assets under PMIERs compared to available assets of $4,588 million against $3,359 million net required assets as of December 31, 2020 (PMIERs sufficiency is based on the published requirements applicable to private mortgage insurers and does not give effect to the GSE restrictions imposed on Enact Holdings). |
• | The increase in the PMIERs sufficiency was driven by a higher volume of credit risk transfer transactions, elevated lapse driven by prevailing low interest rates, business cash flows and lower delinquencies, partially offset by elevated new insurance written. |
• | As of December 31, 2021 and 2020, Enact’s PMIERs required assets benefited by $390 million and $1,046 million, respectively, from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans. |
• | Dividends: |
• | Enact Holdings paid a dividend of $163 million to Genworth Holdings in the fourth quarter of 2021. |
• | Enact Holdings intends to develop a formal dividend policy and initiate a regular common dividend during 2022. |
• | Enact Holdings’ dividend policy is a critical piece in determining Genworth’s future cash flows, and once set, it could help pave the way for returning capital to Genworth Financial shareholders. |
• | Cumulative economic benefit from in-force rate actions: |
• | During 2021, we continued to make strong progress on our long-term care insurance in-force rate action plan. |
• | We estimate that the cumulative economic benefit of our long-term care insurance multi-year in-force rate action plan through 2021 was approximately $19.6 billion, on a net present value basis, of the total expected amount required of $28.7 billion. |
• | Completion of annual long-term care insurance assumption review: |
• | In the fourth quarter of 2021, we completed a review of our assumptions and methodologies of our claim reserves and future policy benefits for our long-term care insurance business and completed loss recognition testing. |
• | We made no changes to our existing claim reserves, as experience in the aggregate was in line with expectations. |
• | The 2021 U.S. GAAP margins for our long-term care insurance business remained within the range of approximately $0.5 billion to $1.0 billion. |
• | Completion of annual life insurance assumption review: |
• | We also completed a review of our assumptions and methodologies of our life insurances business and completed loss recognition testing in the fourth quarter of 2021. |
• | The loss recognition testing margin for our term life insurance products remained positive in 2021. |
• | As part of our review in the fourth quarter of 2021, we recorded a $70 million after-tax expense to net income in our universal and term universal life insurance products primarily related to higher pre-COVID-19 |
• | Completion of a life block transaction: |
• | In the fourth quarter of 2021, we recorded an after-tax loss of $73 million as a result of ceding certain term life insurance policies as part of a life block transaction. |
• | This transaction generated statutory capital in excess of approximately $170 million for our U.S. life insurance subsidiaries. |
• | Execution of strategic plan to reduce debt maturities: |
• | We continue to focus on deleveraging with a goal of reducing debt at Genworth Holdings, the issuer of our outstanding public debt, to approximately $1.0 billion over time. |
• | During 2021, Genworth Holdings repaid approximately $2.1 billion of debt and other obligations, including the repayment of the AXA promissory note. |
• | As of December 31, 2021, Genworth Holdings had outstanding $1.2 billion of long-term debt, with no debt maturities until February 2024. |
• | During the year ended December 31, 2021 and the first quarter of 2022, Genworth Holdings redeemed and repurchased the following: |
• | Redemption and repurchase of Genworth Holdings’ August 2023 senior notes. |
originally scheduled to mature in August 2023. The senior notes were fully redeemed with a cash payment of $334 million, including accrued interest and a make-whole premium. During the fourth quarter of 2021 and prior to the early redemption, Genworth Holdings repurchased $91 million of its August 2023 senior notes for a pre-tax loss of $9 million. |
• | Repurchase of Genworth Holdings’ February 2024 senior notes. pre-tax loss of $6 million. During the first quarter of 2022 and as of February 18, 2022, Genworth Holdings repurchased $33 million principal amount of its 4.80% senior notes due in February 2024. |
• | Redemption and repurchase of Genworth Holdings’ September 2021 senior notes. pre-tax loss of $4 million. |
• | Redemption of Genworth Holdings’ February 2021 senior notes. |
• | Repayment of the AXA promissory note. |
• | Completion of minority IPO of Enact Holdings: |
• | On September 20, 2021, we completed a minority IPO of Enact Holdings and received net proceeds of approximately $529 million. |
• | Following the completion of the minority IPO, Genworth Financial beneficially owns through its subsidiaries approximately 81.6% of the common shares of Enact Holdings. |
• | Sale of our Australian mortgage insurance business: |
• | On March 3, 2021, we completed the sale of our entire ownership interest of approximately 52% in Genworth Australia through an underwriting agreement. |
• | We sold our approximately 214.3 million shares of Genworth Australia for AUD2.28 per share and received approximately AUD483 million ($370 million) in net cash proceeds. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Revenues: |
||||||||||||||||||||
Premiums |
$ | 975 | $ | 971 | $ | 856 | $ | 4 | — | % | ||||||||||
Net investment income |
141 | 133 | 117 | 8 | 6 | % | ||||||||||||||
Net investment gains (losses) |
(2 | ) | (4 | ) | 1 | 2 | 50 | % | ||||||||||||
Policy fees and other income |
4 | 6 | 4 | (2 | ) | (33 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
1,118 | 1,106 | 978 | 12 | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
125 | 381 | 50 | (256 | ) | (67 | )% | |||||||||||||
Acquisition and operating expenses, net of deferrals |
230 | 206 | 191 | 24 | 12 | % | ||||||||||||||
Amortization of deferred acquisition costs and intangibles |
15 | 21 | 15 | (6 | ) | (29 | )% | |||||||||||||
Interest expense |
51 | 18 | — | 33 | 183 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total benefits and expenses |
421 | 626 | 256 | (205 | ) | (33 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations before income taxes |
697 | 480 | 722 | 217 | 45 | % | ||||||||||||||
Provision for income taxes |
148 | 102 | 153 | 46 | 45 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations |
549 | 378 | 569 | 171 | 45 | % | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
33 | — | — | 33 | NM | (1) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
516 | 378 | 569 | 138 | 37 | % | ||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||
Net investment (gains) losses |
2 | 4 | (1 | ) | (2 | ) | (50 | )% | ||||||||||||
Expenses related to restructuring |
3 | — | — | 3 | NM | (1) | ||||||||||||||
Taxes on adjustments |
(1 | ) | (1 | ) | — | — | — | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | 520 | $ | 381 | $ | 568 | $ | 139 | 36 | % | ||||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
As of or for the years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Primary insurance in-force (1) |
$ | 226,514 | $ | 207,947 | $ | 181,785 | $ | 18,567 | 9 | % | ||||||||||
Risk in-force: |
||||||||||||||||||||
Primary |
$ | 56,881 | $ | 52,475 | $ | 46,246 | $ | 4,406 | 8 | % | ||||||||||
Pool |
105 | 146 | 188 | (41 | ) | (28 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total risk in-force |
$ | 56,986 | $ | 52,621 | $ | 46,434 | $ | 4,365 | 8 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
New insurance written |
$ | 97,004 | $ | 99,871 | $ | 62,431 | $ | (2,867 | ) | (3 | )% |
(1) |
Primary insurance in-force represents the aggregate unpaid principal balance for loans Enact insures. Original loan balances are primarily used to determine premiums. |
Years ended December 31, |
Increase (decrease) |
|||||||||||||||
2021 |
2020 |
2019 |
2021 vs. 2020 |
|||||||||||||
Loss ratio |
13 | % | 39 | % | 6 | % | (26 | )% | ||||||||
Expense ratio |
25 | % | 23 | % | 24 | % | 2 | % |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Primary insurance in-force by loan-to-value |
||||||||||||
95.01% and above |
$ | 35,455 | $ | 34,520 | $ | 32,502 | ||||||
90.01% to 95.00% |
95,149 | 92,689 | 83,189 | |||||||||
85.01% to 90.00% |
64,549 | 56,341 | 49,305 | |||||||||
85.00% and below |
31,361 | 24,397 | 16,789 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 226,514 | $ | 207,947 | $ | 181,785 | ||||||
|
|
|
|
|
|
|||||||
Primary risk in-force by loan-to-value |
||||||||||||
95.01% and above |
$ | 9,907 | $ | 9,279 | $ | 8,365 | ||||||
90.01% to 95.00% |
27,608 | 26,774 | 23,953 | |||||||||
85.01% to 90.00% |
15,644 | 13,562 | 11,933 | |||||||||
85.00% and below |
3,722 | 2,860 | 1,995 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 56,881 | $ | 52,475 | $ | 46,246 | ||||||
|
|
|
|
|
|
|||||||
Primary insurance in-force by credit quality at origination: |
||||||||||||
Over 760 |
$ | 89,982 | $ | 78,488 | $ | 69,129 | ||||||
740—759 |
35,874 | 33,635 | 29,961 | |||||||||
720—739 |
31,730 | 30,058 | 26,184 | |||||||||
700—719 |
27,359 | 25,870 | 21,567 | |||||||||
680—699 |
21,270 | 20,140 | 16,935 | |||||||||
660—679 (1) |
10,549 | 9,819 | 8,504 | |||||||||
640—659 |
6,124 | 5,935 | 5,379 | |||||||||
620—639 |
2,783 | 2,902 | 2,794 | |||||||||
<620 |
843 | 1,100 | 1,332 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 226,514 | $ | 207,947 | $ | 181,785 | ||||||
|
|
|
|
|
|
|||||||
Primary risk in-force by credit quality at origination: |
||||||||||||
Over 760 |
$ | 22,489 | $ | 19,691 | $ | 17,606 | ||||||
740—759 |
9,009 | 8,497 | 7,685 | |||||||||
720—739 |
8,055 | 7,673 | 6,717 | |||||||||
700—719 |
6,907 | 6,579 | 5,464 | |||||||||
680—699 |
5,334 | 5,100 | 4,286 | |||||||||
660—679 (1) |
2,638 | 2,442 | 2,113 | |||||||||
640—659 |
1,530 | 1,472 | 1,322 | |||||||||
620—639 |
702 | 737 | 709 | |||||||||
<620 |
217 | 284 | 344 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 56,881 | $ | 52,475 | $ | 46,246 | ||||||
|
|
|
|
|
|
(1) |
Loans with unknown FICO scores are included in the 660-679 category. |
2021 |
2020 |
2019 |
||||||||||
Primary insurance: |
||||||||||||
Insured loans in-force |
937,350 | 924,624 | 851,070 | |||||||||
Delinquent loans |
24,820 | 44,904 | 16,392 | |||||||||
Percentage of delinquent loans (delinquency rate) |
2.65 | % | 4.86 | % | 1.93 | % |
2021 |
||||||||||||||||
(Dollar amounts in millions) |
Delinquencies |
Direct case reserves (1) |
Risk in-force |
Reserves as % of risk in-force |
||||||||||||
Payments in default: |
||||||||||||||||
3 payments or less |
6,586 | $ | 35 | $ | 340 | 10 | % | |||||||||
4 - 11 payments |
7,360 | 111 | 426 | 26 | % | |||||||||||
12 payments or more |
10,874 | 460 | 643 | 72 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
24,820 | $ | 606 | $ | 1,409 | 43 | % | |||||||||
|
|
|
|
|
|
2020 |
||||||||||||||||
(Dollar amounts in millions) |
Delinquencies |
Direct case reserves (1) |
Risk in-force |
Reserves as % of risk in-force |
||||||||||||
Payments in default: |
||||||||||||||||
3 payments or less |
10,484 | $ | 43 | $ | 549 | 8 | % | |||||||||
4 - 11 payments |
30,324 | 331 | 1,853 | 18 | % | |||||||||||
12 payments or more |
4,096 | 143 | 204 | 70 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
44,904 | $ | 517 | $ | 2,606 | 20 | % | |||||||||
|
|
|
|
|
|
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
Percent of primary risk in-force as of |
Percent of direct case reserves as of |
Delinquency rate as of December 31, |
||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||
By State: |
||||||||||||||||||||
California |
11 | % | 12 | % | 3.17 | % | 6.20 | % | 1.42 | % | ||||||||||
Texas |
8 | % | 8 | % | 2.89 | % | 5.82 | % | 2.02 | % | ||||||||||
Florida (2) |
7 | % | 9 | % | 2.97 | % | 6.92 | % | 2.13 | % | ||||||||||
New York (2) |
5 | % | 12 | % | 3.80 | % | 6.92 | % | 2.98 | % | ||||||||||
Illinois (2) |
5 | % | 6 | % | 3.09 | % | 5.21 | % | 2.25 | % | ||||||||||
Michigan |
4 | % | 2 | % | 1.87 | % | 2.93 | % | 1.43 | % | ||||||||||
Arizona |
3 | % | 2 | % | 2.31 | % | 4.54 | % | 1.46 | % | ||||||||||
North Carolina |
3 | % | 2 | % | 2.18 | % | 3.84 | % | 1.79 | % | ||||||||||
Pennsylvania (2) |
3 | % | 3 | % | 2.38 | % | 4.11 | % | 2.12 | % | ||||||||||
Washington |
3 | % | 3 | % | 2.98 | % | 5.37 | % | 1.10 | % |
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(2) |
Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be completed. |
Percent of primary risk in-force as of |
Percent of direct case reserves as of |
Delinquency rate as of December 31, |
||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||
By MSA or MD: |
||||||||||||||||||||
Chicago-Naperville, IL MD |
3 | % | 4 | % | 3.68 | % | 6.36 | % | 2.50 | % | ||||||||||
Phoenix, AZ MSA |
3 | % | 2 | % | 2.36 | % | 4.63 | % | 1.38 | % | ||||||||||
New York, NY MD |
3 | % | 8 | % | 5.32 | % | 10.25 | % | 3.68 | % | ||||||||||
Atlanta, GA MSA |
2 | % | 3 | % | 3.28 | % | 6.68 | % | 2.14 | % | ||||||||||
Washington DC-Arlington MD |
2 | % | 2 | % | 2.96 | % | 6.09 | % | 1.47 | % | ||||||||||
Houston, TX MSA |
2 | % | 3 | % | 3.61 | % | 7.59 | % | 2.62 | % | ||||||||||
Riverside-San Bernardino, CA MSA |
2 | % | 2 | % | 3.42 | % | 7.08 | % | 2.08 | % | ||||||||||
Los Angeles-Long Beach, CA MD |
2 | % | 3 | % | 3.95 | % | 7.57 | % | 1.35 | % | ||||||||||
Dallas, TX MD |
2 | % | 2 | % | 2.31 | % | 5.10 | % | 1.85 | % | ||||||||||
Nassau County, NY MD |
2 | % | 4 | % | 5.55 | % | 10.64 | % | 3.47 | % |
(1) |
Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(Amounts in millions) |
Weighted average rate (1) |
Percent of direct case reserves (2) |
Primary insurance in-force |
Percent of total |
Primary risk in-force |
Percent of total |
Delinquency rate |
|||||||||||||||||||||
Policy Year |
||||||||||||||||||||||||||||
2004 and prior |
6.20 | % | 2 | % | $ | 541 | — | % | $ | 154 | — | % | 13.24 | % | ||||||||||||||
2005 to 2008 |
5.58 | % | 22 | 7,655 | 3 | 1,958 | 3 | 10.23 | % | |||||||||||||||||||
2009 to 2013 |
4.32 | % | 2 | 1,404 | 1 | 370 | 1 | 5.54 | % | |||||||||||||||||||
2014 |
4.49 | % | 3 | 1,965 | 1 | 534 | 1 | 5.51 | % | |||||||||||||||||||
2015 |
4.17 | % | 5 | 4,488 | 2 | 1,197 | 2 | 4.24 | % | |||||||||||||||||||
2016 |
3.89 | % | 8 | 8,997 | 4 | 2,388 | 4 | 3.69 | % | |||||||||||||||||||
2017 |
4.26 | % | 10 | 8,962 | 4 | 2,324 | 4 | 4.78 | % | |||||||||||||||||||
2018 |
4.78 | % | 13 | 9,263 | 4 | 2,330 | 4 | 5.93 | % | |||||||||||||||||||
2019 |
4.20 | % | 19 | 21,730 | 10 | 5,454 | 10 | 3.89 | % | |||||||||||||||||||
2020 |
3.23 | % | 14 | 69,963 | 31 | 17,574 | 31 | 1.50 | % | |||||||||||||||||||
2021 |
3.08 | % | 2 | 91,546 | 40 | 22,598 | 40 | 0.37 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total portfolio |
3.52 | % | 100 | % | $ | 226,514 | 100 | % | $ | 56,881 | 100 | % | 2.65 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Average annual mortgage interest rate weighted by insurance in-force. |
(2) |
Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Revenues: |
||||||||||||||||||||
Premiums |
$ | 2,454 | $ | 2,858 | $ | 2,861 | $ | (404 | ) | (14 | )% | |||||||||
Net investment income |
3,029 | 2,878 | 2,852 | 151 | 5 | % | ||||||||||||||
Net investment gains (losses) |
329 | 517 | 82 | (188 | ) | (36 | )% | |||||||||||||
Policy fees and other income |
565 | 595 | 643 | (30 | ) | (5 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
6,377 | 6,848 | 6,438 | (471 | ) | (7 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
4,230 | 4,781 | 4,979 | (551 | ) | (12 | )% | |||||||||||||
Interest credited |
346 | 383 | 419 | (37 | ) | (10 | )% | |||||||||||||
Acquisition and operating expenses, net of deferrals |
865 | 620 | 604 | 245 | 40 | % | ||||||||||||||
Amortization of deferred acquisition costs and intangibles |
340 | 418 | 372 | (78 | ) | (19 | )% | |||||||||||||
Interest expense |
— | 5 | 17 | (5 | ) | (100 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total benefits and expenses |
5,781 | 6,207 | 6,391 | (426 | ) | (7 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations before income taxes |
596 | 641 | 47 | (45 | ) | (7 | )% | |||||||||||||
Provision for income taxes |
155 | 163 | 34 | (8 | ) | (5 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations |
441 | 478 | 13 | (37 | ) | (8 | )% | |||||||||||||
Adjustments to income from continuing operations: |
||||||||||||||||||||
Net investment (gains) losses, net (2) |
(330 | ) | (525 | ) | (89 | ) | 195 | 37 | % | |||||||||||
Gains (losses) on early extinguishment of debt |
— | 4 | — | (4 | ) | (100 | )% | |||||||||||||
Initial loss from life block transaction |
92 | — | — | 92 | NM | (1) | ||||||||||||||
Expenses related to restructuring |
17 | 1 | 3 | 16 | NM | (1) | ||||||||||||||
Taxes on adjustments |
47 | 110 | 18 | (63 | ) | (57 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | 267 | $ | 68 | $ | (55 | ) | $ | 199 | NM | (1) | |||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) |
For the years ended December 31, 2021, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(1) million, $(8) million and $(7) million, respectively. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||
Long-term care insurance |
$ | 445 | $ | 237 | $ | 57 | $ | 208 | 88 | % | ||||||||||
Life insurance |
(269 | ) | (247 | ) | (181 | ) | (22 | ) | (9 | )% | ||||||||||
Fixed annuities |
91 | 78 | 69 | 13 | 17 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | 267 | $ | 68 | $ | (55 | ) | $ | 199 | NM | (1) | |||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
• | Adjusted operating income in our long-term care insurance business increased $208 million primarily from higher net investment income, as well as higher premiums and reduced benefits of $212 million in 2021 from in-force rate actions approved and implemented, which included a net favorable impact from policyholder benefit reduction elections made as part of a legal settlement. The increase was also attributable to favorable development on IBNR claims. The year ended December 31, 2020 included higher claim reserves of $157 million associated with changes to incidence and mortality experience driven by COVID-19, which we believe are temporary. |
• | The adjusted operating loss in our life insurance business increased $22 million mainly attributable to an unfavorable unlocking of $70 million in our universal and term universal life insurance products as part of our annual review of assumptions in the fourth quarter of 2021 compared to a favorable unlocking of $60 million in 2020 (see “—Critical Accounting Estimates” for additional information). The higher loss was also attributable to higher mortality in 2021 compared to 2020 and higher DAC impairments of $42 million in 2021 in our universal and term universal life insurance products principally due to lower future estimated gross profits. The higher loss was partially offset by lower lapses primarily associated with our large 20-year term life insurance block written at the end of 2000 as it entered its post-level premium period. |
• | Adjusted operating income in our fixed annuities business increased $13 million mainly attributable to lower reserves and DAC amortization in our fixed indexed annuities driven by favorable changes in interest rates and equity markets, partially offset by lower net spreads in 2021. |
• | Our long-term care insurance business decreased $30 million primarily driven by policy terminations and policies entering paid-up status in 2021, partially offset by $84 million of increased premiums in 2021 from in-force rate actions approved and implemented. |
• | Our life insurance business decreased $374 million mainly attributable to higher ceded reinsurance in 2021. We initially ceded $360 million of certain term life insurance premiums under a new reinsurance treaty as part of a life block transaction in the fourth quarter of 2021. The decrease was also attributable to the continued runoff of our term and whole life insurance products in 2021. |
• | Our long-term care insurance business increased $231 million largely from higher income of $218 million in 2021 mostly from limited partnerships, U.S. Government Treasury Inflation Protected Securities (“TIPS”) and bond calls. The increase was also attributable to higher average invested assets in 2021. |
• | Our life insurance business decreased $16 million principally related to lower yields in 2021. |
• | Our fixed annuities business decreased $64 million largely attributable to lower average invested assets in 2021 due to block runoff. |
• | Net investment gains in our long-term care insurance business decreased $282 million principally due to net gains from the sale of U.S. government securities in 2020 due to portfolio rebalancing and asset exposure management that did not recur, partially offset by higher unrealized gains from changes in the fair value of equity securities in 2021. |
• | Net investment gains in our life insurance business increased $54 million predominantly from higher net gains from the sale of investment securities and higher unrealized gains from changes in the fair value of equity securities in 2021. |
• | Net investment losses in our fixed annuities business decreased $40 million primarily related to lower net derivative losses in 2021. |
• | Our long-term care insurance business decreased $298 million primarily due to a more favorable impact of $405 million from reduced benefits in 2021 related to in-force rate actions approved and implemented, which included policyholder benefit reduction elections made as part of a legal settlement, and from favorable development on IBNR claims. Given our assumption that COVID-19 accelerated mortality on our most vulnerable claimants and temporarily decreased the number of new claims submitted, we increased claim reserves by $199 million in 2020. In 2021, as the impacts of COVID-19 lessened, we modestly strengthened our claim reserves by $10 million to account for changes to incidence and mortality experience driven by COVID-19. These decreases were partially offset by aging of the in-force block and higher incremental reserves of $347 million
recorded in connection with an accrual for profits followed by losses in 2021. The year ended December 31, 2020 included a $17 million net favorable impact from the completion of our annual review of assumptions and methodologies. |
• | Our life insurance business decreased $226 million principally related to higher ceded reinsurance in 2021. We initially ceded $268 million of certain term life insurance reserves under a new reinsurance treaty as part of a life block transaction in the fourth quarter of 2021. This decrease was partially offset by an unfavorable unlocking of $86 million in our universal and term universal life insurance products as part of our annual review of assumptions in the fourth quarter of 2021 compared to a favorable unlocking of $124 million in 2020 (see “—Critical Accounting Estimates—Policyholder account balances” for additional information). Mortality was also higher in 2021 compared to 2020 attributable in part to COVID-19. |
• | Our fixed annuities business decreased $27 million principally from lower reserves in our fixed indexed annuities driven by favorable interest rate and equity market changes in 2021 compared to an unfavorable market in 2020. |
• | Our long-term care insurance business increased $219 million principally related to higher premium taxes, commissions and other expenses of $220 million in 2021 associated with our in-force rate action plan, which included expenses related to policyholder benefit reduction elections made as part of a legal settlement. |
• | Our life insurance business increased $26 million predominately from reinsurance costs recorded in connection with a life block transaction completed in the fourth quarter of 2021. |
• | Our long-term care insurance business increased $21 million principally from policy terminations and policies entering paid-up status in 2021. |
• | Our life insurance business decreased $77 million primarily attributable to higher prior year lapses in our 20-year term life insurance block written in 2000 and a less unfavorable unlocking of $40 million in our universal and term universal life insurance products as part of our annual review of assumptions in the fourth quarter of 2021 compared to 2020. These decreases were partially offset by higher DAC impairments of $54 million in 2021 in our universal and term universal life insurance products principally due to lower future estimated gross profits. |
• | Our fixed annuities business decreased $22 million primarily related to lower DAC amortization reflecting the impact of favorable market changes in 2021. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Premiums |
$ | 830 | $ | 746 | $ | 632 | $ | 84 | 11 | % | ||||||||||
Plus: Benefits and other changes in policy reserves (2) |
912 | 507 | 614 | 405 | 80 | % | ||||||||||||||
Less: Acquisition and operating expenses, net of deferrals (3) |
282 | 62 | 52 | 220 | NM | (1) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income before taxes |
1,460 | 1,191 | 1,194 | 269 | 23 | % | ||||||||||||||
Income taxes |
307 | 250 | 251 | 57 | 23 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income (4) |
$ | 1,153 | $ | 941 | $ | 943 | $ | 212 | 23 | % | ||||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) |
Amounts represent benefit reductions elected by policyholders as an alternative to increased premiums. These amounts reduced benefits and other changes in policy reserves in our long-term care insurance business for the periods indicated. |
(3) |
Amounts include premium taxes, commissions and other expenses associated with our long-term care insurance in-force rate action plan, which included expenses of $209 million related to policyholder benefit reduction elections made as part of a legal settlement for the year ended December 31, 2021. Included in the $209 million of expenses was $185 million related to cash damages. |
(4) |
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders attributable to in-force rate actions excludes reserve updates resulting from profits followed by losses. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Net earned premiums: |
||||||||||||||||||||
Individual long-term care insurance (1) |
$ | 2,466 | $ | 2,497 | $ | 2,464 | $ | (31 | ) | (1 | )% | |||||||||
Group long-term care insurance |
124 | 123 | 119 | 1 | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 2,590 | $ | 2,620 | $ | 2,583 | $ | (30 | ) | (1 | )% | |||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio |
61 | % | 71 | % | 77 | % | (10 | )% |
(1) |
For the years ended December 31, 2021, 2020 and 2019, amounts include increased premiums of $830 million, $746 million and $632 million, respectively, from in-force rate actions approved and implemented. |
As of or for years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Term and whole life insurance |
||||||||||||||||||||
Net earned premiums (1) |
$ | (136 | ) | $ | 238 | $ | 278 | $ | (374 | ) | (157 | )% | ||||||||
Life insurance in-force, net of reinsurance |
47,297 | 59,919 | 81,644 | (12,622 | ) | (21 | )% | |||||||||||||
Life insurance in-force before reinsurance |
332,793 | 362,082 | 399,887 | (29,289 | ) | (8 | )% | |||||||||||||
Term universal life insurance |
||||||||||||||||||||
Net deposits |
$ | 203 | $ | 217 | $ | 228 | $ | (14 | ) | (6 | )% | |||||||||
Life insurance in-force, net of reinsurance |
99,471 | 107,048 | 112,720 | (7,577 | ) | (7 | )% | |||||||||||||
Life insurance in-force before reinsurance |
100,119 | 107,774 | 113,487 | (7,655 | ) | (7 | )% | |||||||||||||
Universal life insurance |
||||||||||||||||||||
Net deposits |
$ | 259 | $ | 269 | $ | 360 | $ | (10 | ) | (4 | )% | |||||||||
Life insurance in-force, net of reinsurance |
31,117 | 32,501 | 33,917 | (1,384 | ) | (4 | )% | |||||||||||||
Life insurance in-force before reinsurance |
35,228 | 36,839 | 38,566 | (1,611 | ) | (4 | )% | |||||||||||||
Total life insurance |
||||||||||||||||||||
Net earned premiums and deposits (1) |
$ | 326 | $ | 724 | $ | 866 | $ | (398 | ) | (55 | )% | |||||||||
Life insurance in-force, net of reinsurance |
177,885 | 199,468 | 228,281 | (21,583 | ) | (11 | )% | |||||||||||||
Life insurance in-force before reinsurance |
468,140 | 506,695 | 551,940 | (38,555 | ) | (8 | )% |
(1) |
In the fourth quarter of 2021, we ceded premiums of $360 million associated with certain term life insurance policies under a new reinsurance treaty as part of a life block transaction. |
As of or for years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Account value, beginning of period |
$ | 11,815 | $ | 13,023 | $ | 14,348 | $ | (1,208 | ) | (9 | )% | |||||||||
Deposits |
83 | 80 | 85 | 3 | 4 | % | ||||||||||||||
Surrenders, benefits and product charges |
(1,976 | ) | (1,886 | ) | (2,137 | ) | (90 | ) | (5 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net flows |
(1,893 | ) | (1,806 | ) | (2,052 | ) | (87 | ) | (5 | )% | ||||||||||
Interest credited and investment performance |
349 | 405 | 486 | (56 | ) | (14 | )% | |||||||||||||
Effect of accumulated net unrealized investment gains (losses) |
(108 | ) | 193 | 241 | (301 | ) | (156 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Account value, end of period |
$ | 10,163 | $ | 11,815 | $ | 13,023 | $ | (1,652 | ) | (14 | )% | |||||||||
|
|
|
|
|
|
|
|
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Revenues: |
||||||||||||||||||||
Net investment income |
$ | 194 | $ | 210 | $ | 187 | $ | (16 | ) | (8 | )% | |||||||||
Net investment gains (losses) |
3 | (26 | ) | (25 | ) | 29 | 112 | % | ||||||||||||
Policy fees and other income |
134 | 130 | 140 | 4 | 3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
331 | 314 | 302 | 17 | 5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
27 | 48 | 27 | (21 | ) | (44 | )% | |||||||||||||
Interest credited |
162 | 166 | 158 | (4 | ) | (2 | )% | |||||||||||||
Acquisition and operating expenses, net of deferrals |
53 | 48 | 52 | 5 | 10 | % | ||||||||||||||
Amortization of deferred acquisition costs and intangibles |
20 | 23 | 18 | (3 | ) | (13 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total benefits and expenses |
262 | 285 | 255 | (23 | ) | (8 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations before income taxes |
69 | 29 | 47 | 40 | 138 | % | ||||||||||||||
Provision for income taxes |
13 | 4 | 8 | 9 | NM | (1) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from continuing operations |
56 | 25 | 39 | 31 | 124 | % | ||||||||||||||
Adjustments to income from continuing operations: |
||||||||||||||||||||
Net investment (gains) losses, net (2) |
(3 | ) | 23 | 21 | (26 | ) | (113 | )% | ||||||||||||
Taxes on adjustments |
1 | (5 | ) | (4 | ) | 6 | 120 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | 54 | $ | 43 | $ | 56 | $ | 11 | 26 | % | ||||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) |
For the years ended December 31, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million and $(4) million, respectively. |
As of or for the years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Account value, beginning of period |
$ | 5,001 | $ | 5,042 | $ | 4,918 | $ | (41 | ) | (1 | )% | |||||||||
Deposits |
19 | 20 | 25 | (1 | ) | (5 | )% | |||||||||||||
Surrenders, benefits and product charges |
(607 | ) | (559 | ) | (640 | ) | (48 | ) | (9 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net flows |
(588 | ) | (539 | ) | (615 | ) | (49 | ) | (9 | )% | ||||||||||
Interest credited and investment performance |
426 | 498 | 739 | (72 | ) | (14 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Account value, end of period |
$ | 4,839 | $ | 5,001 | $ | 5,042 | $ | (162 | ) | (3 | )% | |||||||||
|
|
|
|
|
|
|
|
As of or for the years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Account value, beginning of period |
$ | 300 | $ | 253 | $ | 381 | $ | 47 | 19 | % | ||||||||||
Deposits |
— | 150 | — | (150 | ) | (100 | )% | |||||||||||||
Surrenders and benefits |
(52 | ) | (106 | ) | (136 | ) | 54 | 51 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net flows |
(52 | ) | 44 | (136 | ) | (96 | ) | NM | (1) | |||||||||||
Interest credited |
2 | 3 | 8 | (1 | ) | (33 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Account value, end of period |
$ | 250 | $ | 300 | $ | 253 | $ | (50 | ) | (17 | )% | |||||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
Years ended December 31, |
Increase (decrease) and percentage change |
|||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 vs. 2020 |
||||||||||||||||
Revenues: |
||||||||||||||||||||
Premiums |
$ | 6 | $ | 7 | $ | 8 | $ | (1 | ) | (14 | )% | |||||||||
Net investment income |
6 | 6 | 8 | — | — | % | ||||||||||||||
Net investment gains (losses) |
(7 | ) | 5 | (31 | ) | (12 | ) | NM | (1) | |||||||||||
Policy fees and other income |
1 | (2 | ) | 2 | 3 | 150 | % | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
6 | 16 | (13 | ) | (10 | ) | (63 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
1 | 4 | 3 | (3 | ) | (75 | )% | |||||||||||||
Acquisition and operating expenses, net of deferrals |
75 | 61 | 62 | 14 | 23 | % | ||||||||||||||
Amortization of deferred acquisition costs and intangibles |
2 | 1 | 3 | 1 | 100 | % | ||||||||||||||
Interest expense |
109 | 172 | 214 | (63 | ) | (37 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total benefits and expenses |
187 | 238 | 282 | (51 | ) | (21 | )% | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss from continuing operations before income taxes |
(181 | ) | (222 | ) | (295 | ) | 41 | 18 | % | |||||||||||
Benefit for income taxes |
(53 | ) | (39 | ) | (56 | ) | (14 | ) | (36 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss from continuing operations |
(128 | ) | (183 | ) | (239 | ) | 55 | 30 | % | |||||||||||
Adjustments to loss from continuing operations: |
||||||||||||||||||||
Net investment (gains) losses |
7 | (5 | ) | 31 | 12 | NM | (1) | |||||||||||||
(Gains) losses on early extinguishment of debt |
45 | 5 | — | 40 | NM | (1) | ||||||||||||||
Expenses related to restructuring |
14 | 2 | 1 | 12 | NM | (1) | ||||||||||||||
Taxes on adjustments |
(14 | ) | (1 | ) | (7 | ) | (13 | ) | NM | (1) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted operating loss available to Genworth Financial Inc.’s common stockholders |
$ | (76 | ) | $ | (182 | ) | $ | (214 | ) | $ | 106 | 58 | % | |||||||
|
|
|
|
|
|
|
|
(1) |
We define “NM” as not meaningful for increases or decreases greater than 200%. |
Increase (decrease) |
||||||||||||||||||||||||||||||||
2021 |
2020 |
2019 |
2021 vs. 2020 |
|||||||||||||||||||||||||||||
(Amounts in millions) |
Yield |
Amount |
Yield |
Amount |
Yield |
Amount |
Yield |
Amount |
||||||||||||||||||||||||
Fixed maturity securities—taxable |
4.5 | % | $ | 2,411 | 4.7 | % | $ | 2,448 | 4.7 | % | $ | 2,444 | (0.2 | )% | $ | (37 | ) | |||||||||||||||
Fixed maturity securities—non-taxable |
5.6 | % | 7 | 4.3 | % | 6 | 6.1 | % | 8 | 1.3 | % | 1 | ||||||||||||||||||||
Equity securities |
4.0 | % | 9 | 4.2 | % | 12 | 6.2 | % | 12 | (0.2 | )% | (3 | ) | |||||||||||||||||||
Commercial mortgage loans |
5.5 | % | 376 | 5.0 | % | 345 | 5.0 | % | 348 | 0.5 | % | 31 | ||||||||||||||||||||
Policy loans |
9.3 | % | 189 | 9.5 | % | 199 | 8.9 | % | 180 | (0.2 | )% | (10 | ) | |||||||||||||||||||
Limited partnerships (1) |
15.7 | % | 223 | 9.1 | % | 72 | 8.5 | % | 44 | 6.6 | % | 151 | ||||||||||||||||||||
Other invested assets (2) |
69.7 | % | 241 | 56.0 | % | 223 | 56.2 | % | 190 | 13.7 | % | 18 | ||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments |
— | % | 1 | 0.5 | % | 15 | 1.6 | % | 33 | (0.5 | )% | (14 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Gross investment income before expenses and fees |
5.2 | % | 3,457 | 5.0 | % | 3,320 | 5.1 | % | 3,259 | 0.2 | % | 137 | ||||||||||||||||||||
Expenses and fees |
(0.1 | )% | (87 | ) | (0.1 | )% | (93 | ) | (0.2 | )% | (95 | ) | — | % | 6 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net investment income |
5.1 | % | $ | 3,370 | 4.9 | % | $ | 3,227 | 4.9 | % | $ | 3,164 | 0.2 | % | $ | 143 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Average invested assets and cash |
$ | 66,099 | $ | 65,982 | $ | 64,091 | $ | 117 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(1) |
Limited partnership investments are primarily equity-based and do not have fixed returns by period. |
(2) |
Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Realized investment gains (losses): |
||||||||||||
Available-for-sale |
||||||||||||
Realized gains |
$ | 67 | $ | 471 | $ | 90 | ||||||
Realized losses |
(10 | ) | (29 | ) | (38 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized gains (losses) on available-for-sale |
57 | 442 | 52 | |||||||||
Net realized gains (losses) on equity securities sold |
(7 | ) | (1 | ) | — | |||||||
Net realized gains (losses) on limited partnerships |
3 | — | 1 | |||||||||
|
|
|
|
|
|
|||||||
Total net realized investment gains (losses) |
53 | 441 | 53 | |||||||||
|
|
|
|
|
|
|||||||
Impairments: |
||||||||||||
Total other-than-temporary impairments |
— | — | (1 | ) | ||||||||
Portion of other-than-temporary impairments included in other comprehensive income (loss) |
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net other-than-temporary impairments |
— | — | (1 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net change in allowance for credit losses on available-for-sale |
(6 | ) | (5 | ) | — | |||||||
Write-down of available-for-sale |
(1 | ) | (4 | ) | — | |||||||
Net unrealized gains (losses) on equity securities still held |
1 | 4 | 14 | |||||||||
Net unrealized gains (losses) on limited partnerships |
264 | 112 | 28 | |||||||||
Commercial mortgage loans |
(3 | ) | (2 | ) | (2 | ) | ||||||
Derivative instruments |
14 | (49 | ) | (70 | ) | |||||||
Other |
1 | (5 | ) | 5 | ||||||||
|
|
|
|
|
|
|||||||
Net investment gains (losses) |
$ | 323 | $ | 492 | $ | 27 | ||||||
|
|
|
|
|
|
• | We recorded net gains related to the sale of available-for-sale available-for-sale |
• | We recorded higher net unrealized gains of $152 million on limited partnership investments in 2021 compared to 2020 primarily driven by higher average limited partnership investments, as well as favorable performance of private equity investments in 2021. |
• | Net investment gains related to derivatives of $14 million in 2021 were primarily associated with embedded derivatives related to our indexed universal life insurance products, partially offset by losses from decreases in the values of investments used to protect statutory surplus from equity market fluctuations and losses associated with embedded derivatives related to our fixed indexed annuity products. |
2021 |
2020 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Available-for-sale |
||||||||||||||||
Public |
$ | 42,501 | 58 | % | $ | 44,776 | 58 | % | ||||||||
Private |
17,979 | 24 | 18,719 | 24 | ||||||||||||
Equity securities |
198 | — | 386 | — | ||||||||||||
Commercial mortgage loans, net |
6,830 | 9 | 6,743 | 9 | ||||||||||||
Policy loans |
2,050 | 3 | 1,978 | 3 | ||||||||||||
Limited partnerships |
1,900 | 3 | 1,049 | 1 | ||||||||||||
Other invested assets |
820 | 1 | 1,050 | 2 | ||||||||||||
Cash, cash equivalents and restricted cash |
1,571 | 2 | 2,561 | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, restricted cash and invested assets |
$ | 73,849 | 100 | % | $ | 77,262 | 100 | % | ||||||||
|
|
|
|
|
|
|
|
(Amounts in millions) |
Amortized cost or cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | 3,368 | $ | 1,184 | $ | — | $ | — | $ | 4,552 | ||||||||||
State and political subdivisions |
2,982 | 474 | (6 | ) | — | 3,450 | ||||||||||||||
Non-U.S. government |
762 | 86 | (13 | ) | — | 835 | ||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
4,330 | 783 | (9 | ) | — | 5,104 | ||||||||||||||
Energy |
2,581 | 363 | (10 | ) | — | 2,934 | ||||||||||||||
Finance and insurance |
8,003 | 1,012 | (24 | ) | — | 8,991 | ||||||||||||||
Consumer—non-cyclical |
5,138 | 1,029 | (8 | ) | — | 6,159 | ||||||||||||||
Technology and communications |
3,345 | 476 | (13 | ) | — | 3,808 | ||||||||||||||
Industrial |
1,322 | 175 | (3 | ) | — | 1,494 | ||||||||||||||
Capital goods |
2,334 | 415 | (4 | ) | — | 2,745 | ||||||||||||||
Consumer—cyclical |
1,703 | 203 | (7 | ) | — | 1,899 | ||||||||||||||
Transportation |
1,122 | 249 | — | — | 1,371 | |||||||||||||||
Other |
379 | 41 | (1 | ) | — | 419 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
30,257 | 4,746 | (79 | ) | — | 34,924 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
867 | 63 | (2 | ) | — | 928 | ||||||||||||||
Energy |
1,194 | 190 | (1 | ) | — | 1,383 | ||||||||||||||
Finance and insurance |
2,171 | 270 | (9 | ) | — | 2,432 | ||||||||||||||
Consumer—non-cyclical |
664 | 81 | (2 | ) | — | 743 | ||||||||||||||
Technology and communications |
1,085 | 166 | (1 | ) | — | 1,250 | ||||||||||||||
Industrial |
933 | 117 | (3 | ) | — | 1,047 | ||||||||||||||
Capital goods |
640 | 66 | (1 | ) | — | 705 | ||||||||||||||
Consumer—cyclical |
316 | 27 | (2 | ) | — | 341 | ||||||||||||||
Transportation |
422 | 68 | (1 | ) | — | 489 | ||||||||||||||
Other |
1,052 | 169 | (4 | ) | — | 1,217 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
9,344 | 1,217 | (26 | ) | — | 10,535 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
1,325 | 116 | (1 | ) | — | 1,440 | ||||||||||||||
Commercial mortgage-backed |
2,435 | 152 | (3 | ) | — | 2,584 | ||||||||||||||
Other asset-backed |
2,138 | 29 | (7 | ) | — | 2,160 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale |
$ | 52,611 | $ | 8,004 | $ | (135 | ) | $ | — | $ | 60,480 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Amortized cost or cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | 3,401 | $ | 1,404 | $ | — | $ | — | $ | 4,805 | ||||||||||
State and political subdivisions |
2,622 | 544 | (1 | ) | — | 3,165 | ||||||||||||||
Non-U.S. government |
728 | 130 | (4 | ) | — | 854 | ||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
4,226 | 970 | (2 | ) | — | 5,194 | ||||||||||||||
Energy |
2,532 | 367 | (16 | ) | — | 2,883 | ||||||||||||||
Finance and insurance |
7,798 | 1,306 | (2 | ) | — | 9,102 | ||||||||||||||
Consumer—non-cyclical |
5,115 | 1,323 | (1 | ) | — | 6,437 | ||||||||||||||
Technology and communications |
3,142 | 619 | — | — | 3,761 | |||||||||||||||
Industrial |
1,370 | 232 | — | — | 1,602 | |||||||||||||||
Capital goods |
2,456 | 535 | — | — | 2,991 | |||||||||||||||
Consumer—cyclical |
1,663 | 284 | — | — | 1,947 | |||||||||||||||
Transportation |
1,198 | 304 | (2 | ) | — | 1,500 | ||||||||||||||
Other |
395 | 45 | — | — | 440 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
29,895 | 5,985 | (23 | ) | — | 35,857 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
838 | 84 | — | — | 922 | |||||||||||||||
Energy |
1,172 | 209 | (1 | ) | — | 1,380 | ||||||||||||||
Finance and insurance |
2,130 | 353 | (6 | ) | (1 | ) | 2,476 | |||||||||||||
Consumer—non-cyclical |
662 | 112 | (1 | ) | — | 773 | ||||||||||||||
Technology and communications |
1,062 | 229 | — | — | 1,291 | |||||||||||||||
Industrial |
969 | 159 | — | — | 1,128 | |||||||||||||||
Capital goods |
510 | 67 | (1 | ) | — | 576 | ||||||||||||||
Consumer—cyclical |
331 | 41 | (1 | ) | — | 371 | ||||||||||||||
Transportation |
483 | 88 | (1 | ) | — | 570 | ||||||||||||||
Other |
1,088 | 236 | — | — | 1,324 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
9,245 | 1,578 | (11 | ) | (1 | ) | 10,811 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed (1) |
1,698 | 211 | — | — | 1,909 | |||||||||||||||
Commercial mortgage-backed |
2,759 | 231 | (13 | ) | (3 | ) | 2,974 | |||||||||||||
Other asset-backed |
3,069 | 55 | (4 | ) | — | 3,120 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale |
$ | 53,417 | $ | 10,138 | $ | (56 | ) | $ | (4 | ) | $ | 63,495 | ||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Fair value included $8 million collateralized by Alt-A residential mortgage loans. |
2021 |
2020 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Derivatives |
$ | 414 | 50 | % | $ | 574 | 55 | % | ||||||||
Bank loan investments |
363 | 45 | 344 | 33 | ||||||||||||
Short-term investments |
26 | 3 | 45 | 4 | ||||||||||||
Securities lending collateral |
— | — | 67 | 6 | ||||||||||||
Other investments |
17 | 2 | 20 | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other invested assets |
$ | 820 | 100 | % | $ | 1,050 | 100 | % | ||||||||
|
|
|
|
|
|
|
|
(Notional in millions) |
Measurement |
Additions |
Maturities/ terminations |
|||||||||||||||||
Derivatives designated as hedges |
||||||||||||||||||||
Cash flow hedges: |
||||||||||||||||||||
Interest rate swaps |
Notional | $ | 8,178 | $ | — | $ | (525 | ) | $ | 7,653 | ||||||||||
Foreign currency swaps |
Notional | 127 | — | — | 127 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total cash flow hedges |
8,305 | — | (525 | ) | 7,780 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives designated as hedges |
8,305 | — | (525 | ) | 7,780 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
Interest rate swaps |
Notional | 4,674 | — | (4,674 | ) | — | ||||||||||||||
Equity index options |
Notional | 2,000 | 1,438 | (1,992 | ) | 1,446 | ||||||||||||||
Financial futures |
Notional | 1,104 | 3,887 | (4,045 | ) | 946 | ||||||||||||||
Other foreign currency contracts |
Notional | 1,186 | 25 | (1,128 | ) | 83 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives not designated as hedges |
8,964 | 5,350 | (11,839 | ) | 2,475 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives |
$ | 17,269 | $ | 5,350 | $ | (12,364 | ) | $ | 10,255 | |||||||||||
|
|
|
|
|
|
|
|
(Number of policies) |
Measurement |
Additions |
Maturities/ terminations |
|||||||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
GMWB embedded derivatives |
Policies | 23,713 | — | (1,909 | ) | 21,804 | ||||||||||||||
Fixed index annuity embedded derivatives |
Policies | 12,778 | — | (3,434 | ) | 9,344 | ||||||||||||||
Indexed universal life embedded derivatives |
Policies | 842 | — | (36 | ) | 806 |
Other Block (Excluding the Acquired Block) |
Increase (decrease) and percentage change |
|||||||||||||||
December 31, |
||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2021 vs. 2020 |
|||||||||||||
Select estimates and assumptions used in loss recognition testing: |
||||||||||||||||
Present value of expected future benefits |
$ | 49,495 | $ | 50,840 | $ | (1,345 | ) | (3 | )% | |||||||
Future in-force rate action assumption |
$ | 9,000 | $ | 8,000 | $ | 1,000 | 13 | % | ||||||||
Discount rate assumption |
5.25 | % | 5.34 | % | (9 | ) 0 ⁄000 |
(2 | )% |
(Amounts in millions) |
Other Block (Excluding the Acquired Block) |
|||
Sensitivities on loss recognition testing (1): |
||||
5% relative increase in future claim costs |
$ | (2,475 | ) | |
10% reduction in benefit of future in-force rate actions |
$ | (900 | ) | |
Discount rate decrease of 25 basis points (2) |
$ | (1,150 | ) |
(1) |
The margin impacts are each discrete and do not reflect the impact one factor may have on another. For example, the increase in claim costs does not include any offsetting impacts from potential future in-force rate actions. Any such offset from in-force rate actions would primarily impact our long-term care insurance block, excluding the acquired block. |
(2) |
The 25 basis point decrease in the discount rate refers to a reduction in our portfolio yields. |
Acquired Block |
Increase (decrease) and percentage change |
|||||||||||||||
December 31, |
||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2021 vs. 2020 |
|||||||||||||
Select estimates and assumptions used in loss recognition testing: |
||||||||||||||||
Present value of expected future benefits |
$ | 2,118 | $ | 2,403 | $ | (285 | ) | (12 | )% | |||||||
Discount rate assumption |
6.06 | % | 6.44 | % | (38 | ) 0 ⁄000 |
(6 | )% |
(Amounts in millions) |
Acquired Block |
|||
Sensitivities on loss recognition testing margin (1): |
||||
5% relative increase in future claim costs |
$ | (106 | ) | |
Discount rate decrease of 25 basis points (2) |
$ | (28 | ) |
(1) |
The margin impacts are each discrete and do not reflect the impact one factor may have on another. For example, the increase in claim costs does not include any incremental adverse impacts from a potential decrease in the discount rate. |
(2) |
The 25 basis point decrease in the discount rate refers to a reduction in our portfolio yields. |
Other Block (Excluding the Acquired Block and Certain Reinsured Blocks) |
Increase (decrease) and percentage change |
|||||||||||||||
December 31, |
||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2021 vs. 2020 |
|||||||||||||
Select estimates used in loss recognition testing: |
|
|||||||||||||||
Total present value of expected future premiums |
$ | 2,612 | $ | 2,657 | $ | (45 | ) | (2 | )% | |||||||
Total present value of expected death benefits and expenses |
$ | 2,109 | $ | 2,115 | $ | (6 | ) | — | % |
Acquired Block |
Increase (decrease) and percentage change |
|||||||||||||||
December 31, |
||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2021 vs. 2020 |
|||||||||||||
Select estimates used in loss recognition testing: |
||||||||||||||||
Total present value of expected future premiums |
$ | 506 | $ | 521 | $ | (15 | ) | (3 | )% | |||||||
Total present value of expected death benefits and expenses |
$ | 317 | $ | 332 | $ | (15 | ) | (5 | )% |
(Amounts in millions) |
Other Block (Excluding the Acquired Block and Certain Reinsured Blocks) |
Acquired Block |
Total |
|||||||||
Sensitivities on loss recognition testing (1): |
||||||||||||
2% higher mortality |
$ | (59 | ) | $ | (8 | ) | $ | (67 | ) | |||
10% increase in lapses |
$ | (265 | ) | $ | (41 | ) | $ | (306 | ) |
(1) |
The margin impacts are each discrete and do not reflect the impact one factor may have on another. |
Increase (decrease) and |
||||||||||||||||
December 31, |
percentage change |
|||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2021 vs. 2020 |
|||||||||||||
Select estimates and assumptions used in loss recognition testing: |
||||||||||||||||
Total present value of expected benefits and expenses |
$ | 3,430 | $ | 3,610 | $ | (180 | ) | (5 | )% | |||||||
Reported investment yield |
5.79 | % | 5.86 | % | (7 | ) 0 ⁄000 |
(1 | )% |
(Amounts in millions) |
Fixed Immediate Annuity Products |
|||
Sensitivities on loss recognition testing (1): |
||||
2% lower mortality |
$ | (20 | ) | |
10 basis point reduction in investment yields |
$ | (26 | ) |
(1) |
The margin impacts are each discrete and do not reflect the impact one factor may have on another. |
(Amounts in millions) |
2021 |
2020 |
||||||
U.S. Life Insurance segment: |
||||||||
Long-term care insurance |
$ | 10,861 | $ | 10,518 | ||||
Life insurance |
308 | 378 | ||||||
Fixed annuities |
14 | 12 | ||||||
Enact segment |
641 | 555 | ||||||
Runoff segment |
8 | 12 | ||||||
Other mortgage insurance (1) |
9 | 11 | ||||||
|
|
|
|
|||||
Total liability for policy and contract claims |
$ | 11,841 | $ | 11,486 | ||||
|
|
|
|
(1) |
Amounts included in Corporate and Other activities. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
U.S. Life Insurance |
$ | 2 | $ | 48 | $ | 58 | ||||||
Enact |
— | 6 | — | |||||||||
Runoff |
(2 | ) | (2 | ) | (2 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | — | $ | 52 | $ | 56 | ||||||
|
|
|
|
|
|
2021 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Fixed maturity securities: |
||||||||||||||||
Pricing services |
$ | 53,852 | $ | — | $ | 53,852 | $ | — | ||||||||
Broker quotes |
312 | — | — | 312 | ||||||||||||
Internal models |
6,316 | — | 2,820 | 3,496 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturity securities |
$ | 60,480 | $ | — | $ | 56,672 | $ | 3,808 | ||||||||
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Fixed maturity securities: |
||||||||||||||||
Pricing services |
$ | 57,229 | $ | — | $ | 57,229 | $ | — | ||||||||
Broker quotes |
730 | — | — | 730 | ||||||||||||
Internal models |
5,536 | — | 2,177 | 3,359 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturity securities |
$ | 63,495 | $ | — | $ | 59,406 | $ | 4,089 | ||||||||
|
|
|
|
|
|
|
|
• | Cash, cash equivalents, restricted cash and invested assets decreased $3,413 million primarily from decreases of $3,015 million, $990 million and $230 million in fixed maturity securities, cash, cash equivalents, restricted cash and other invested assets, respectively. The decrease in fixed maturity securities was predominantly related to a decrease in unrealized gains due to an increase in interest rates and from net sales in 2021. The decrease in cash, cash equivalents and restricted cash was largely related to net withdrawals from our investment contracts, the redemption and repurchase of certain Genworth Holdings’ senior notes, including the full redemption of senior notes originally scheduled to mature in September 2021 and August 2023, and payments of $564 million to AXA primarily associated with a secured promissory note. These
decreases to cash were partially offset by net proceeds of approximately $529 million and $370 million received from the minority IPO of Enact Holdings and the sale of Genworth Australia, respectively, and by net sales of investment securities in |
2021. The decrease in other invested assets was predominantly driven by the termination of certain derivative contracts, lower derivative asset valuations due to an increase in interest rates and from the suspension of our securities lending program in 2021 that resulted in lower cash collateral. |
• | DAC decreased $341 million principally attributable to DAC impairments in our universal and term universal life insurance products. During 2021 and in connection with our periodic reviews of DAC for recoverability, we wrote off $117 million of DAC in our universal and term universal life insurance products due principally to lower future estimated gross profits. The decrease was also attributable to lapses in our life insurance products and higher policy terminations in our long-term care insurance business in 2021. |
• | Deferred tax asset increased $54 million largely due to a decrease in unrealized gains on derivatives and investments and from deferred tax assets of $87 million and $54 million recorded in connection with the sale of Genworth Australia and the minority IPO of Enact Holdings, respectively, partially offset by a net deferred tax liability based on pre-tax earnings. |
• | Assets related to discontinued operations decreased $2,817 million due to the sale and deconsolidation of Genworth Australia in 2021. |
• | Future policy benefits decreased $1,167 million primarily driven by shadow accounting adjustments associated with a decrease in unrealized gains in 2021. The shadow accounting adjustments decreased future policy benefits by approximately $1,270 million, mostly in our long-term care insurance business, with an offsetting amount recorded in other comprehensive income (loss). The decrease was also attributable to reduced benefits of $920 million in 2021 related to in-force actions approved and implemented, which included policyholder benefit reduction elections made as part of a legal settlement in our long-term care insurance business. Net outflows driven by surrenders and benefits in our single premium immediate annuity products and runoff of our term life insurance products, including from higher lapses in 2021, also drove the decrease. These decreases were partially offset by aging of our long-term care insurance in-force
block and higher incremental reserves of $649 million recorded in connection with an accrual for profits followed by losses in 2021. |
• | Policyholder account balances decreased $2,149 million largely attributable to surrenders and benefits in our deferred annuity products and from scheduled maturities of certain funding agreements in our universal life insurance and institutional products in 2021. The decrease was also attributable to shadow accounting adjustments associated with a decrease in unrealized gains in 2021. The shadow accounting adjustments decreased policyholder account balances by approximately $503 million, mostly in our universal life insurance products, with an offsetting amount recorded in other comprehensive income (loss). These decreases were partially offset by higher reserves of $87 million associated with an unfavorable unlocking in our term universal and universal life insurance products related to our annual review of assumptions in 2021. |
• | Liability for policy and contract claims increased $355 million largely related to our long-term care insurance business primarily attributable to new claims and claim severity as a result of the aging of the in-force block and a $10 million increase to claim reserves to account for changes to incidence and mortality experience driven by COVID-19, which we believe are temporary. The increase was also attributable to our Enact segment primarily driven by new delinquencies, partially offset by net favorable reserve adjustments related to positive frequency and severity development on pre-COVID-19 delinquencies in 2021. These increases were also partially offset by fewer pending claims in our life insurance business and higher claim terminations in our long-term care insurance business in
2021. |
• | Long-term borrowings decreased $1,504 million mainly attributable to the redemption of Genworth Holdings’ senior notes due in February 2021, September 2021 and August 2023, and from the |
repurchase of $118 million of Genworth Holdings’ February 2024 senior notes in the fourth quarter of 2021. See note 12 in our consolidated financial statements under “Item 8 —Financial Statements and Supplementary Data” for additional details. |
• | Liabilities related to discontinued operations decreased $2,336 million predominantly from the sale and deconsolidation of Genworth Australia, which also resulted in a mandatory payment of approximately $247 million, including accrued interest, to AXA under the secured promissory note in 2021. In addition, during the third quarter of 2021, Genworth Holdings repaid the remaining outstanding balance of the secured promissory note due to AXA of approximately $296 million. See note 23 in our consolidated financial statements under “Item 8 —Financial Statements and Supplementary Data” for additional details. |
• | We reported net income available to Genworth Financial, Inc.’s common stockholders of $904 million for the year ended December 31, 2021. |
• | Unrealized gains on investments and derivatives qualifying as hedges decreased $354 million and $186 million, respectively, primarily from an increase in interest rates in 2021. |
• | Additional paid-in capital decreased $150 million largely attributable to the IPO of 18.4% of Enact Holdings in September 2021. |
• | Noncontrolling interests increased $254 million related to the IPO of 18.4% of Enact Holdings in September 2021, partially offset by the deconsolidation of the ownership interest attributable to noncontrolling interests of Genworth Australia recorded in connection with the final disposition in March 2021. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Net cash from operating activities |
$ | 437 | $ | 1,960 | $ | 2,079 | ||||||
Net cash from (used by) investing activities |
896 | (1,153 | ) | 1,301 | ||||||||
Net cash used by financing activities |
(2,419 | ) | (1,507 | ) | (2,217 | ) | ||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash before foreign exchange effect |
$ | (1,086 | ) | $ | (700 | ) | $ | 1,163 | ||||
|
|
|
|
|
|
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities available-for-sale, |
$ | — | $ | — | $ | 60,480 | $ | — | $ | 60,480 | ||||||||||
Equity securities, at fair value |
— | — | 198 | — | 198 | |||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) |
— | — | 6,856 | — | 6,856 | |||||||||||||||
Less: Allowance for credit losses |
— | — | (26 | ) | — | (26 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial mortgage loans, net |
— | — | 6,830 | — | 6,830 | |||||||||||||||
Policy loans |
— | — | 2,050 | — | 2,050 | |||||||||||||||
Limited partnerships |
— | — | 1,900 | — | 1,900 | |||||||||||||||
Other invested assets |
— | 27 | 793 | — | 820 | |||||||||||||||
Investments in subsidiaries |
15,517 | 15,626 | — | (31,143 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total investments |
15,517 | 15,653 | 72,251 | (31,143 | ) | 72,278 | ||||||||||||||
Cash, cash equivalents and restricted cash |
— | 331 | 1,240 | — | 1,571 | |||||||||||||||
Accrued investment income |
— | — | 647 | — | 647 | |||||||||||||||
Deferred acquisition costs |
— | — | 1,146 | — | 1,146 | |||||||||||||||
Intangible assets |
— | — | 143 | — | 143 | |||||||||||||||
Reinsurance recoverable |
— | — | 16,868 | — | 16,868 | |||||||||||||||
Less: Allowance for credit losses |
— | — | (55 | ) | — | (55 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reinsurance recoverable, net |
— | — | 16,813 | — | 16,813 | |||||||||||||||
Other assets |
5 | 207 | 176 | — | 388 | |||||||||||||||
Intercompany notes receivable |
— | 15 | 1 | (16 | ) | — | ||||||||||||||
Deferred tax assets |
4 | 555 | (440 | ) | — | 119 | ||||||||||||||
Separate account assets |
— | — | 6,066 | — | 6,066 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 15,526 | $ | 16,761 | $ | 98,043 | $ | (31,159 | ) | $ | 99,171 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities and equity |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Future policy benefits |
$ | — | $ | — | $ | 41,528 | $ | — | $ | 41,528 | ||||||||||
Policyholder account balances |
— | — | 19,354 | — | 19,354 | |||||||||||||||
Liability for policy and contract claims |
— | — | 11,841 | — | 11,841 | |||||||||||||||
Unearned premiums |
— | — | 672 | — | 672 | |||||||||||||||
Other liabilities |
4 | 64 | 1,443 | — | 1,511 | |||||||||||||||
Intercompany notes payable |
12 | 1 | 3 | (16 | ) | — | ||||||||||||||
Long-term borrowings |
— | 1,159 | 740 | — | 1,899 | |||||||||||||||
Separate account liabilities |
— | — | 6,066 | — | 6,066 | |||||||||||||||
Liabilities related to discontinued operations |
— | 30 | 4 | — | 34 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
16 | 1,254 | 81,651 | (16 | ) | 82,905 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity: |
||||||||||||||||||||
Common stock |
1 | — | 4 | (4 | ) | 1 | ||||||||||||||
Additional paid-in capital |
11,858 | 12,724 | 18,135 | (30,859 | ) | 11,858 | ||||||||||||||
Accumulated other comprehensive income (loss) |
3,861 | 3,861 | 3,906 | (7,767 | ) | 3,861 | ||||||||||||||
Retained earnings |
2,490 | (1,078 | ) | (6,709 | ) | 7,787 | 2,490 | |||||||||||||
Treasury stock, at cost |
(2,700 | ) | — | — | — | (2,700 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity |
15,510 | 15,507 | 15,336 | (30,843 | ) | 15,510 | ||||||||||||||
Noncontrolling interests |
— | — | 1,056 | (300 | ) | 756 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total equity |
15,510 | 15,507 | 16,392 | (31,143 | ) | 16,266 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 15,526 | $ | 16,761 | $ | 98,043 | $ | (31,159 | ) | $ | 99,171 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities available-for-sale, |
$ | — | $ | — | $ | 63,495 | $ | — | $ | 63,495 | ||||||||||
Equity securities, at fair value |
— | — | 386 | — | 386 | |||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) |
— | — | 6,774 | — | 6,774 | |||||||||||||||
Less: Allowance for credit losses |
— | — | (31 | ) | — | (31 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial mortgage loans, net |
— | — | 6,743 | — | 6,743 | |||||||||||||||
Policy loans |
— | — | 1,978 | — | 1,978 | |||||||||||||||
Limited partnerships |
— | — | 1,049 | — | 1,049 | |||||||||||||||
Other invested assets |
— | 67 | 983 | — | 1,050 | |||||||||||||||
Investments in subsidiaries |
15,358 | 16,673 | — | (32,031 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total investments |
15,358 | 16,740 | 74,634 | (32,031 | ) | 74,701 | ||||||||||||||
Cash, cash equivalents and restricted cash |
— | 1,078 | 1,483 | — | 2,561 | |||||||||||||||
Accrued investment income |
— | — | 655 | — | 655 | |||||||||||||||
Deferred acquisition costs |
— | — | 1,487 | — | 1,487 | |||||||||||||||
Intangible assets |
— | — | 157 | — | 157 | |||||||||||||||
Reinsurance recoverable |
— | — | 16,864 | — | 16,864 | |||||||||||||||
Less: Allowance for credit losses |
— | — | (45 | ) | — | (45 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reinsurance recoverable, net |
— | — | 16,819 | — | 16,819 | |||||||||||||||
Other assets |
2 | 146 | 256 | — | 404 | |||||||||||||||
Intercompany notes receivable |
— | 19 | — | (19 | ) | — | ||||||||||||||
Deferred tax assets |
13 | 767 | (715 | ) | — | 65 | ||||||||||||||
Separate account assets |
— | — | 6,081 | — | 6,081 | |||||||||||||||
Assets related to discontinued operations |
— | — | 2,817 | — | 2,817 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 15,373 | $ | 18,750 | $ | 103,674 | $ | (32,050 | ) | $ | 105,747 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities and equity |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Future policy benefits |
$ | — | $ | — | $ | 42,695 | $ | — | $ | 42,695 | ||||||||||
Policyholder account balances |
— | — | 21,503 | — | 21,503 | |||||||||||||||
Liability for policy and contract claims |
— | — | 11,486 | — | 11,486 | |||||||||||||||
Unearned premiums |
— | — | 775 | — | 775 | |||||||||||||||
Other liabilities |
55 | 156 | 1,403 | — | 1,614 | |||||||||||||||
Intercompany notes payable |
— | — | 19 | (19 | ) | — | ||||||||||||||
Long-term borrowings |
— | 2,665 | 738 | — | 3,403 | |||||||||||||||
Separate account liabilities |
— | — | 6,081 | — | 6,081 | |||||||||||||||
Liabilities related to discontinued operations |
— | 581 | 1,789 | — | 2,370 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
55 | 3,402 | 86,489 | (19 | ) | 89,927 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity: |
||||||||||||||||||||
Common stock |
1 | — | 3 | (3 | ) | 1 | ||||||||||||||
Additional paid-in capital |
12,008 | 12,890 | 18,562 | (31,452 | ) | 12,008 | ||||||||||||||
Accumulated other comprehensive income (loss) |
4,425 | 4,426 | 4,499 | (8,925 | ) | 4,425 | ||||||||||||||
Retained earnings |
1,584 | (1,968 | ) | (6,681 | ) | 8,649 | 1,584 | |||||||||||||
Treasury stock, at cost |
(2,700 | ) | — | — | — | (2,700 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity |
15,318 | 15,348 | 16,383 | (31,731 | ) | 15,318 | ||||||||||||||
Noncontrolling interests |
— | — | 802 | (300 | ) | 502 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total equity |
15,318 | 15,348 | 17,185 | (32,031 | ) | 15,820 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 15,373 | $ | 18,750 | $ | 103,674 | $ | (32,050 | ) | $ | 105,747 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Revenues: |
||||||||||||||||||||
Premiums |
$ | — | $ | — | $ | 3,435 | $ | — | $ | 3,435 | ||||||||||
Net investment income |
(3 | ) | — | 3,373 | — | 3,370 | ||||||||||||||
Net investment gains (losses) |
— | — | 323 | — | 323 | |||||||||||||||
Policy fees and other income |
— | (1 | ) | 703 | 2 | 704 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
(3 | ) | (1 | ) | 7,834 | 2 | 7,832 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
— | — | 4,383 | — | 4,383 | |||||||||||||||
Interest credited |
— | — | 508 | — | 508 | |||||||||||||||
Acquisition and operating expenses, net of deferrals |
25 | 44 | 1,154 | — | 1,223 | |||||||||||||||
Amortization of deferred acquisition costs and intangibles |
— | — | 377 | — | 377 | |||||||||||||||
Interest expense |
(1 | ) | 109 | 50 | 2 | 160 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total benefits and expenses |
24 | 153 | 6,472 | 2 | 6,651 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries |
(27 | ) | (154 | ) | 1,362 | — | 1,181 | |||||||||||||
Provision (benefit) for income taxes |
(1 | ) | (33 | ) | 297 | — | 263 | |||||||||||||
Equity in income of subsidiaries |
930 | 1,041 | — | (1,971 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income from continuing operations |
904 | 920 | 1,065 | (1,971 | ) | 918 | ||||||||||||||
Income from discontinued operations, net of taxes |
— | 13 | 14 | — | 27 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
904 | 933 | 1,079 | (1,971 | ) | 945 | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
— | — | 33 | — | 33 | |||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
— | — | 8 | — | 8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | 904 | $ | 933 | $ | 1,038 | $ | (1,971 | ) | $ | 904 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Revenues: |
||||||||||||||||||||
Premiums |
$ |
— |
$ |
— |
$ |
3,836 |
$ |
— |
$ |
3,836 |
||||||||||
Net investment income |
(3 |
) |
5 |
3,228 |
(3 |
) |
3,227 |
|||||||||||||
Net investment gains (losses) |
— |
6 |
486 |
— |
492 |
|||||||||||||||
Policy fees and other income |
— |
3 |
730 |
(4 |
) |
729 |
||||||||||||||
Total revenues |
(3 |
) |
14 |
8,280 |
(7 |
) |
8,284 |
|||||||||||||
Benefits and expenses: |
||||||||||||||||||||
Benefits and other changes in policy reserves |
— |
— |
5,214 |
— |
5,214 |
|||||||||||||||
Interest credited |
— |
— |
549 |
— |
549 |
|||||||||||||||
Acquisition and operating expenses, net of deferrals |
31 |
6 |
898 |
— |
935 |
|||||||||||||||
Amortization of deferred acquisition costs and intangibles |
— |
— |
463 |
— |
463 |
|||||||||||||||
Interest expense |
1 |
175 |
26 |
(7 |
) |
195 |
||||||||||||||
Total benefits and expenses |
32 |
181 |
7,150 |
(7 |
) |
7,356 |
||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries |
(35 |
) |
(167 |
) |
1,130 |
— |
928 |
|||||||||||||
Provision (benefit) for income taxes |
(2 |
) |
(41 |
) |
273 |
— |
230 |
|||||||||||||
Equity in income of subsidiaries |
210 |
912 |
— |
(1,122 |
) |
— |
||||||||||||||
Income from continuing operations |
177 |
786 |
857 |
(1,122 |
) |
698 |
||||||||||||||
Income (loss) from discontinued operations, net of taxes |
1 |
(573 |
) |
86 |
— |
(486 |
) | |||||||||||||
Net income |
178 |
213 |
943 |
(1,122 |
) |
212 |
||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
— |
— |
— |
— |
— |
|||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
— |
— |
34 |
— |
34 |
|||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ |
178 |
$ |
213 |
$ |
909 |
$ |
(1,122 |
) |
$ |
178 |
|||||||||
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Net income |
$ |
904 |
$ |
933 |
$ |
1,079 |
$ |
(1,971 |
) |
$ |
945 |
|||||||||
Other comprehensive income (loss), net of taxes: |
||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses |
(334 |
) |
(335 |
) |
(371 |
) |
670 |
(370 |
) | |||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses |
6 |
6 |
6 |
(12 |
) |
6 |
||||||||||||||
Derivatives qualifying as hedges |
(186 |
) |
(186 |
) |
(215 |
) |
401 |
(186 |
) | |||||||||||
Foreign currency translation and other adjustments |
(24 |
) |
(24 |
) |
149 |
47 |
148 |
|||||||||||||
Total other comprehensive income (loss) |
(538 |
) |
(539 |
) |
(431 |
) |
1,106 |
(402 |
) | |||||||||||
Total comprehensive income |
366 |
394 |
648 |
(865 |
) |
543 |
||||||||||||||
Less: comprehensive income attributable to noncontrolling interests |
— |
— |
177 |
— |
177 |
|||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders |
$ |
366 |
$ |
394 |
$ |
471 |
$ |
(865 |
) |
$ |
366 |
|||||||||
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Net income |
$ |
178 |
$ |
213 |
$ |
943 |
$ |
(1,122 |
) |
$ |
212 |
|||||||||
Other comprehensive income (loss), net of taxes: |
||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses |
764 |
765 |
765 |
(1,530 |
) |
764 |
||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses |
(6 |
) |
(6 |
) |
(6 |
) |
12 |
(6 |
) | |||||||||||
Derivatives qualifying as hedges |
209 |
209 |
241 |
(450 |
) |
209 |
||||||||||||||
Foreign currency translation and other adjustments |
25 |
25 |
55 |
(50 |
) |
55 |
||||||||||||||
Total other comprehensive income (loss) |
992 |
993 |
1,055 |
(2,018 |
) |
1,022 |
||||||||||||||
Total comprehensive income |
1,170 |
1,206 |
1,998 |
(3,140 |
) |
1,234 |
||||||||||||||
Less: comprehensive income attributable to noncontrolling interests |
— |
— |
64 |
— |
64 |
|||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders |
$ |
1,170 |
$ |
1,206 |
$ |
1,934 |
$ |
(3,140 |
) |
$ |
1,170 |
|||||||||
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Cash flows from (used by) operating activities: |
||||||||||||||||||||
Net income |
$ |
904 |
$ |
933 |
$ |
1,079 |
$ |
(1,971 |
) |
$ |
945 |
|||||||||
Less income from discontinued operations, net of taxes |
— |
(13 |
) |
(14 |
) |
— |
(27 |
) | ||||||||||||
Adjustments to reconcile net income to net cash from (used by) operating activities: |
||||||||||||||||||||
Equity in income from subsidiaries |
(930 |
) |
(1,041 |
) |
— |
1,971 |
— |
|||||||||||||
Dividends from subsidiaries |
— |
552 |
(552 |
) |
— |
— |
||||||||||||||
Amortization of fixed maturity securities discounts and premiums |
— |
6 |
(182 |
) |
— |
(176 |
) | |||||||||||||
Net investment (gains) losses |
— |
— |
(323 |
) |
— |
(323 |
) | |||||||||||||
Charges assessed to policyholders |
— |
— |
(620 |
) |
— |
(620 |
) | |||||||||||||
Acquisition costs deferred |
— |
— |
(8 |
) |
— |
(8 |
) | |||||||||||||
Amortization of deferred acquisition costs and intangibles |
— |
— |
377 |
— |
377 |
|||||||||||||||
Deferred income taxes |
— |
341 |
(51 |
) |
— |
290 |
||||||||||||||
Derivative instruments, limited partnerships and other |
— |
75 |
(434 |
) |
— |
(359 |
) | |||||||||||||
Stock-based compensation expense |
40 |
— |
— |
— |
40 |
|||||||||||||||
Change in certain assets and liabilities: |
||||||||||||||||||||
Accrued investment income and other assets |
(1 |
) |
9 |
(137 |
) |
— |
(129 |
) | ||||||||||||
Insurance reserves |
— |
— |
642 |
— |
642 |
|||||||||||||||
Current tax liabilities |
(5 |
) |
17 |
(46 |
) |
— |
(34 |
) | ||||||||||||
Other liabilities, policy and contract claims and other policy-related balances |
(13 |
) |
(40 |
) |
363 |
— |
310 |
|||||||||||||
Cash from (used by) operating activities—discontinued operations |
— |
(564 |
) |
73 |
— |
(491 |
) | |||||||||||||
Net cash from (used by) operating activities |
(5 |
) |
275 |
167 |
— |
437 |
||||||||||||||
Cash flows from (used by) investing activities: |
||||||||||||||||||||
Proceeds from maturities and repayments of investments: |
||||||||||||||||||||
Fixed maturity securities |
— |
— |
4,162 |
— |
4,162 |
|||||||||||||||
Commercial mortgage loans |
— |
— |
874 |
— |
874 |
|||||||||||||||
Limited partnerships and other invested assets |
— |
— |
255 |
— |
255 |
|||||||||||||||
Proceeds from sales of investments: |
||||||||||||||||||||
Fixed maturity and equity securities |
— |
— |
2,273 |
— |
2,273 |
|||||||||||||||
Purchases and originations of investments: |
||||||||||||||||||||
Fixed maturity and equity securities |
— |
— |
(5,216 |
) |
— |
(5,216 |
) | |||||||||||||
Commercial mortgage loans |
— |
— |
(963 |
) |
— |
(963 |
) | |||||||||||||
Limited partnerships and other invested assets |
— |
— |
(767 |
) |
— |
(767 |
) | |||||||||||||
Short-term investments, net |
— |
— |
18 |
— |
18 |
|||||||||||||||
Policy loans, net |
— |
— |
57 |
— |
57 |
|||||||||||||||
Intercompany notes receivable, net |
— |
4 |
(1 |
) |
(3 |
) |
— |
|||||||||||||
Capital contributions to subsidiaries |
(2 |
) |
— |
2 |
— |
— |
||||||||||||||
Proceeds from sale of business, net of cash transferred |
— |
— |
270 |
— |
270 |
|||||||||||||||
Cash used by investing activities—discontinued operations |
— |
— |
(67 |
) |
— |
(67 |
) | |||||||||||||
Net cash from (used by) investing activities |
(2 |
) |
4 |
897 |
(3 |
) |
896 |
|||||||||||||
Cash flows from (used by) financing activities: |
||||||||||||||||||||
Deposits to universal life and investment contracts |
— |
— |
669 |
— |
669 |
|||||||||||||||
Withdrawals from universal life and investment contracts |
— |
— |
(2,071 |
) |
— |
(2,071 |
) | |||||||||||||
Repayment and repurchase of long-term debt |
— |
(1,541 |
) |
— |
— |
(1,541 |
) | |||||||||||||
Intercompany notes payable, net |
12 |
1 |
(16 |
) |
3 |
— |
||||||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests |
— |
529 |
— |
— |
529 |
|||||||||||||||
Dividends paid to noncontrolling interests |
— |
— |
(37 |
) |
— |
(37 |
) | |||||||||||||
Other, net |
(5 |
) |
(15 |
) |
52 |
— |
32 |
|||||||||||||
Net cash from (used by) financing activities |
7 |
(1,026 |
) |
(1,403 |
) |
3 |
(2,419 |
) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $(1) related to discontinued operations) |
— |
— |
1 |
— |
1 |
|||||||||||||||
Net change in cash, cash equivalents and restricted cash |
— |
(747 |
) |
(338 |
) |
— |
(1,085 |
) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
— |
1,078 |
1,578 |
— |
2,656 |
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period |
— |
331 |
1,240 |
— |
1,571 |
|||||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period |
— |
— |
— |
— |
— |
|||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period |
$ |
— |
$ |
331 |
$ |
1,240 |
$ |
— |
$ |
1,571 |
||||||||||
(Amounts in millions) |
Parent Guarantor |
Issuer |
All Other Subsidiaries |
Eliminations |
Consolidated |
|||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ |
178 |
$ |
213 |
$ |
943 |
$ |
(1,122 |
) |
$ |
212 |
|||||||||
Less (income) loss from discontinued operations, net of taxes |
(1 |
) |
573 |
(86 |
) |
— |
486 |
|||||||||||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||||||||||||||
Equity in income from subsidiaries |
(210 |
) |
(912 |
) |
— |
1,122 |
— |
|||||||||||||
Dividends from subsidiaries |
— |
437 |
(437 |
) |
— |
— |
||||||||||||||
Amortization of fixed maturity securities discounts and premiums |
— |
6 |
(163 |
) |
— |
(157 |
) | |||||||||||||
Net investment (gains) losses |
— |
(6 |
) |
(486 |
) |
— |
(492 |
) | ||||||||||||
Charges assessed to policyholders |
— |
— |
(646 |
) |
— |
(646 |
) | |||||||||||||
Acquisition costs deferred |
— |
— |
(3 |
) |
— |
(3 |
) | |||||||||||||
Amortization of deferred acquisition costs and intangibles |
— |
— |
463 |
— |
463 |
|||||||||||||||
Deferred income taxes |
(1 |
) |
212 |
17 |
— |
228 |
||||||||||||||
Derivative instruments, limited partnerships and other |
— |
(70 |
) |
(42 |
) |
— |
(112 |
) | ||||||||||||
Stock-based compensation expense |
39 |
— |
— |
— |
39 |
|||||||||||||||
Change in certain assets and liabilities: |
||||||||||||||||||||
Accrued investment income and other assets |
2 |
16 |
(105 |
) |
(5 |
) |
(92 |
) | ||||||||||||
Insurance reserves |
— |
— |
1,217 |
— |
1,217 |
|||||||||||||||
Current tax liabilities |
(1 |
) |
41 |
(34 |
) |
— |
6 |
|||||||||||||
Other liabilities, policy and contract claims and other policy-related balances |
11 |
30 |
784 |
5 |
830 |
|||||||||||||||
Cash from (used by) operating activities-discontinued operations |
— |
(258 |
) |
239 |
— |
(19 |
) | |||||||||||||
Net cash from operating activities |
17 |
282 |
1,661 |
— |
1,960 |
|||||||||||||||
Cash flows from (used by) investing activities: |
||||||||||||||||||||
Proceeds from maturities and repayments of investments: |
||||||||||||||||||||
Fixed maturity securities |
— |
— |
3,637 |
— |
3,637 |
|||||||||||||||
Commercial mortgage loans |
— |
— |
744 |
— |
744 |
|||||||||||||||
Limited partnerships and other invested assets |
— |
— |
182 |
— |
182 |
|||||||||||||||
Proceeds from sales of investments: |
||||||||||||||||||||
Fixed maturity and equity securities |
— |
— |
3,040 |
— |
3,040 |
|||||||||||||||
Purchases and originations of investments: |
||||||||||||||||||||
Fixed maturity and equity securities |
— |
— |
(7,763 |
) |
— |
(7,763 |
) | |||||||||||||
Commercial mortgage loans |
— |
— |
(547 |
) |
— |
(547 |
) | |||||||||||||
Limited partnerships and other invested assets |
— |
— |
(449 |
) |
— |
(449 |
) | |||||||||||||
Short-term investments, net |
— |
45 |
(10 |
) |
— |
35 |
||||||||||||||
Policy loans, net |
— |
— |
190 |
— |
190 |
|||||||||||||||
Intercompany notes receivable, net |
(10 |
) |
(16 |
) |
200 |
(174 |
) |
— |
||||||||||||
Capital contributions to subsidiaries |
(2 |
) |
— |
2 |
— |
— |
||||||||||||||
Cash used by investing activities-discontinued operations |
— |
— |
(222 |
) |
— |
(222 |
) | |||||||||||||
Net cash from (used by) investing activities |
(12 |
) |
29 |
(996 |
) |
(174 |
) |
(1,153 |
) | |||||||||||
Cash flows used by financing activities: |
||||||||||||||||||||
Deposits to universal life and investment contracts |
— |
— |
862 |
— |
862 |
|||||||||||||||
Withdrawals from universal life and investment contracts |
— |
— |
(2,282 |
) |
— |
(2,282 |
) | |||||||||||||
Redemption of non-recourse funding obligations |
— |
— |
(315 |
) |
— |
(315 |
) | |||||||||||||
Proceeds from the issuance of long-term debt |
— |
— |
738 |
— |
738 |
|||||||||||||||
Repayment and repurchase of long-term debt |
— |
(490 |
) |
— |
— |
(490 |
) | |||||||||||||
Intercompany notes payable, net |
— |
(190 |
) |
16 |
174 |
— |
||||||||||||||
Other, net |
(5 |
) |
(14 |
) |
17 |
— |
(2 |
) | ||||||||||||
Cash used by financing activities-discontinued operations |
— |
— |
(18 |
) |
— |
(18 |
) | |||||||||||||
Net cash used by financing activities |
(5 |
) |
(694 |
) |
(982 |
) |
174 |
(1,507 |
) | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $18 related to discontinued operations) |
— |
— |
15 |
— |
15 |
|||||||||||||||
Net change in cash, cash equivalents and restricted cash |
— |
(383 |
) |
(302 |
) |
— |
(685 |
) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
— |
1,461 |
1,880 |
— |
3,341 |
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period |
— |
1,078 |
1,578 |
— |
2,656 |
|||||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period |
— |
— |
95 |
— |
95 |
|||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period |
$ |
— |
$ |
1,078 |
$ |
1,483 |
$ |
— |
$ |
2,561 |
||||||||||
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk |
• |
reducing the risk between the timing of the receipt of cash and its investment in the market; and |
• |
extending or shortening the duration of assets to better align with the duration of the liabilities. |
2021 |
2020 |
|||||||||||||||||||||||
(Amounts in millions) |
Principal amount |
Weighted- average interest rate |
Fair value (1) |
Principal amount |
Weighted- average interest rate |
Fair value (1) |
||||||||||||||||||
Floating rate notes: |
||||||||||||||||||||||||
Junior subordinated notes, 2066 (2) |
$ |
600 |
2.17 |
% |
$ |
364 |
$ |
600 |
2.86 |
% |
$ |
240 |
(1) |
The fair value methodology is based on the then-current coupon, revalued based on the LIBOR set and commercially available data using the current spread assumption. The model is a floating rate coupon model using the risk premium or spread assumption to derive the valuation. |
(2) |
Floating rate junior notes due in November 2066 have an annual interest rate equal to three-month LIBOR plus 2.0025%. See note 12 in our consolidated financial statements under “Item 8—Financial Statements and Supplementary Data” for additional information, including LIBOR transition. |
Item 8. |
Financial Statements and Supplementary Data |
Page |
||||
Annual Financial Statements: |
||||
172 |
||||
176 |
||||
177 |
||||
178 |
||||
179 |
||||
180 |
||||
181 |
||||
182 |
||||
202 |
||||
203 |
||||
218 |
||||
223 |
||||
224 |
||||
225 |
||||
229 |
||||
232 |
||||
236 |
||||
238 |
||||
242 |
||||
245 |
||||
245 |
||||
249 |
||||
269 |
||||
276 |
||||
284 |
||||
287 |
||||
292 |
||||
294 |
||||
295 |
||||
Financial Statement Schedules as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019: |
||||
302 |
||||
303 |
||||
309 |
• | Evaluating the methods and assumptions for consistency with generally accepted actuarial methodologies and industry practice |
• | Evaluating the Company’s key assumptions, including the determination of whether to update the key assumptions in the current year, by assessing the consistency of the assumptions with each other, relevant historical and experience data, and industry data, as applicable |
• | Assessing the reasonableness of the Company’s updated morbidity assumptions in relation to the Company’s historical and expected experience |
• | Analyzing the actual impact of individual key assumption changes to the results of the loss recognition test using the Company’s analysis of the impact of each update to the projected cash flows. |
• | Evaluating the methods and assumptions for consistency with generally accepted actuarial methodologies and industry practice |
• | Assessing the consistency of expected claims experience with actual historical claims experience to evaluate the Company’s updated morbidity assumptions |
• | Developing an estimate of the long-term care claim reserves for a selection of contracts using the Company’s assumptions and comparing the results to the Company’s recorded claim reserves for the selected contracts. |
• | Evaluating the methods and assumptions for consistency with generally accepted actuarial methodologies and industry practice |
• | Evaluating the Company’s mortality and lapse assumptions by assessing the consistency of the assumptions with the underlying historical claims and lapse experience data and industry data |
• | Developing an estimate of the secondary guarantee reserve and DAC and the expected gross profits for amortization of DAC for a selection of contracts using the Company’s assumptions and comparing the results to the Company’s recorded reserves and DAC for the selected contracts. |
• | Assessing the Company’s reserving methodology by comparing to accepted actuarial methodologies |
• | Developing an independent estimate and range for a portion of the mortgage insurance loss reserves, using the Company’s underlying historical claims and delinquency data and independently developed models and assumptions and assessing the position in the range and the year-over-year movements of the Company’s recorded mortgage insurance loss reserves within the developed independent range. |
2020 |
||||||||
Assets |
||||||||
Investments: |
||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $ i 52,611 and $ i 53,417
and allowance for credit losses of $ i — and $ i 4 as of December 31, 2021
and 2020, respectively) |
$ | i 60,480 | $ | i 63,495 | ||||
Equity securities, at fair value |
i 198 | i 386 | ||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $ i i 4 /
as of December 31, 2021 and 2020) |
i 6,856 | i 6,774 | ||||||
Less: Allowance for credit losses |
( i 26 | ) | ( i 31 | ) | ||||
|
|
|
|
|||||
Commercial mortgage loans, net |
i 6,830 | i 6,743 | ||||||
Policy loans |
i 2,050 | i 1,978 | ||||||
Limited partnerships |
i 1,900 | i 1,049 | ||||||
Other invested assets |
i 820 | i 1,050 | ||||||
|
|
|
|
|||||
Total investments |
i 72,278 | i 74,701 | ||||||
Cash, cash equivalents and restricted cash |
i 1,571 | i 2,561 | ||||||
Accrued investment income |
i 647 | i 655 | ||||||
Deferred acquisition costs |
i 1,146 | i 1,487 | ||||||
Intangible assets |
i 143 | i 157 | ||||||
Reinsurance recoverable |
i 16,868 | i 16,864 | ||||||
Less: Allowance for credit losses |
( i 55 | ) | ( i 45 | ) | ||||
|
|
|
|
|||||
Reinsurance recoverable, net |
i 16,813 | i 16,819 | ||||||
Other assets |
i 388 | i 404 | ||||||
Deferred tax asset |
i 119 | i 65 | ||||||
Separate account assets |
i 6,066 | i 6,081 | ||||||
Assets related to discontinued operations |
i — | i 2,817 | ||||||
|
|
|
|
|||||
Total assets |
$ | i 99,171 | $ | i 105,747 | ||||
|
|
|
|
|||||
Liabilities and equity |
||||||||
Liabilities: |
||||||||
Future policy benefits |
$ | i 41,528 | $ | i 42,695 | ||||
Policyholder account balances |
i 19,354 | i 21,503 | ||||||
Liability for policy and contract claims |
i 11,841 | i 11,486 | ||||||
Unearned premiums |
i 672 | i 775 | ||||||
Other liabilities |
i 1,511 | i 1,614 | ||||||
Long-term borrowings |
i 1,899 | i 3,403 | ||||||
Separate account liabilities |
i 6,066 | i 6,081 | ||||||
Liabilities related to discontinued operations |
i 34 | i 2,370 | ||||||
|
|
|
|
|||||
Total liabilities |
i 82,905 | i 89,927 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
i | i | ||||||
Equity: |
||||||||
Class A common stock, $ i i 0.001 /
par value; i i 1.5 / billion shares authorized; i 596
million and i 594 million shares issued as of December 31, 2021 and 2020, respectively; i 508 million and i 506
million shares outstanding as of December 31, 2021 and 2020, respectively |
i 1 | i 1 | ||||||
Additional paid-in capital |
i 11,858 | i 12,008 | ||||||
Accumulated other comprehensive income (loss) |
i 3,861 | i 4,425 | ||||||
Retained earnings |
i 2,490 | i 1,584 | ||||||
|
( i 2,700 | ) | ( i 2,700 | ) | ||||
|
|
|
|
|||||
Total Genworth Financial, Inc.’s stockholders’ equity |
i 15,510 | i 15,318 | ||||||
Noncontrolling interests |
i 756 | i 502 | ||||||
|
|
|
|
|||||
Total equity |
i 16,266 | i 15,820 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | i 99,171 | $ | i 105,747 | ||||
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Revenues: |
||||||||||||
Premiums |
$ | i 3,435 | $ | i 3,836 | $ | i 3,725 | ||||||
Net investment income |
i 3,370 | i 3,227 | i 3,164 | |||||||||
Net investment gains (losses) |
i 323 | i 492 | i 27 | |||||||||
Policy fees and other income |
i 704 | i 729 | i 789 | |||||||||
|
|
|
|
|
|
|||||||
Total revenues |
i 7,832 | i 8,284 | i 7,705 | |||||||||
|
|
|
|
|
|
|||||||
Benefits and expenses: |
||||||||||||
Benefits and other changes in policy reserves |
i 4,383 | i 5,214 | i 5,059 | |||||||||
Interest credited |
i 508 | i 549 | i 577 | |||||||||
Acquisition and operating expenses, net of deferrals |
i 1,223 | i 935 | i 909 | |||||||||
Amortization of deferred acquisition costs and intangibles |
i 377 | i 463 | i 408 | |||||||||
Interest expense |
i 160 | i 195 | i 231 | |||||||||
|
|
|
|
|
|
|||||||
Total benefits and expenses |
i 6,651 | i 7,356 | i 7,184 | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations before income taxes |
i 1,181 | i 928 | i 521 | |||||||||
Provision for income taxes |
i 263 | i 230 | i 139 | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations |
i 918 | i 698 | i 382 | |||||||||
Income (loss) from discontinued operations, net of taxes |
i 27 | ( i 486 | ) | i 148 | ||||||||
|
|
|
|
|
|
|||||||
Net income |
i 945 | i 212 | i 530 | |||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i 33 | i — | i — | |||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i 8 | i 34 | i 187 | |||||||||
|
|
|
|
|
|
|||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
|
|
|
|
|
|
|||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 885 | $ | i 698 | $ | i 382 | ||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
i 19 | ( i 520 | ) | ( i 39 | ) | |||||||
|
|
|
|
|
|
|||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
|
|
|
|
|
|
|||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||
Basic |
$ | i 1.75 | $ | i 1.38 | $ | i 0.76 | ||||||
|
|
|
|
|
|
|||||||
Diluted |
$ | i 1.72 | $ | i 1.36 | $ | i 0.75 | ||||||
|
|
|
|
|
|
|||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||
Basic |
$ | i 1.78 | $ | i 0.35 | $ | i 0.68 | ||||||
|
|
|
|
|
|
|||||||
Diluted |
$ | i 1.76 | $ | i 0.35 | $ | i 0.67 | ||||||
|
|
|
|
|
|
|||||||
Weighted-average common shares outstanding: |
||||||||||||
Basic |
i 506.9 | i 505.2 | i 502.9 | |||||||||
|
|
|
|
|
|
|||||||
Diluted |
i 514.7 | i 511.6 | i 509.7 | |||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Net income |
$ | i 945 | $ | i 212 | $ | i 530 | ||||||
Other comprehensive income (loss), net of taxes: |
||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses |
( i 370 | ) | i 764 | i — | ||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses |
i 6 | ( i 6 | ) | i — | ||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired |
i — | i — | i 846 | |||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities |
i — | i — | i 2 | |||||||||
Derivatives qualifying as hedges |
( i 186 | ) | i 209 | i 221 | ||||||||
Foreign currency translation and other adjustments |
i 148 | i 55 | i 487 | |||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss) |
( i 402 | ) | i 1,022 | i 1,556 | ||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
i 543 | i 1,234 | i 2,086 | |||||||||
Less: comprehensive income attributable to noncontrolling interests |
i 177 | i 64 | i 354 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders |
$ | i 366 | $ | i 1,170 | $ | i 1,732 | ||||||
|
|
|
|
|
|
Common stock |
Additional paid-in capital |
Accumulated other comprehensive income (loss) |
Retained earnings |
Treasury stock, at cost |
Total Genworth Financial, Inc.’s stockholders’ equity |
Noncontrolling interests |
Total equity |
|||||||||||||||||||||||||
Balances as of December 31, 2018 |
$ | i 1 | $ | i 11,987 | $ | i 2,044 | $ | i 1,118 | $ | ( i 2,700 | ) | $ | i 12,450 | $ | i 1,739 | $ | i 14,189 | |||||||||||||||
Repurchase of subsidiary shares |
i — | i — | i — | i — | i — | i — | ( i 44 | ) | ( i 44 | ) | ||||||||||||||||||||||
Sale of business that included noncontrolling interests |
i — | i — | i — | i — | i — | i — | ( i 1,417 | ) | ( i 1,417 | ) | ||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
i — | i — | i — | i 343 | i — | i 343 | i 187 | i 530 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes |
i — | i — | i 1,389 | i — | i — | i 1,389 | i 167 | i 1,556 | ||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
i 1,732 | i 354 | i 2,086 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests |
i — | i — | i — | i — | i — | i — | ( i 197 | ) | ( i 197 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other |
i — | i 3 | i — | i — | i — | i 3 | i 12 | i 15 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances as of December 31, 2019 |
i 1 | i 11,990 | i 3,433 | i 1,461 | ( i 2,700 | ) | i 14,185 | i 447 | i 14,632 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cumulative effect of change in accounting, net of taxes |
i — | i — | i — | ( i 55 | ) | i — | ( i 55 | ) | i — | ( i 55 | ) | |||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
i — | i — | i — | i 178 | i — | i 178 | i 34 | i 212 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes |
i — | i — | i 992 | i — | i — | i 992 | i 30 | i 1,022 | ||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
i 1,170 | i 64 | i 1,234 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests |
i — | i — | i — | i — | i — | i — | ( i 9 | ) | ( i 9 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other |
i — | i 18 | i — | i — | i — | i 18 | i — | i 18 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances as of December 31, 2020 |
i 1 | i 12,008 | i 4,425 | i 1,584 | ( i 2,700 | ) | i 15,318 | i 502 | i 15,820 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Initial sale of subsidiary shares to noncontrolling interests |
i — | ( i 167 | ) | ( i 26 | ) | i — | i — | ( i 193 | ) | i 773 | i 580 | |||||||||||||||||||||
Sale of business that included noncontrolling interests |
i — | i — | i — | i — | i — | i — | ( i 657 | ) | ( i 657 | ) | ||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
i — | i — | i — | i 904 | i — | i 904 | i 41 | i 945 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes |
i — | i — | ( i 538 | ) | i — | i — | ( i 538 | ) | i 136 | ( i 402 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
i 366 | i 177 | i 543 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests |
i — | i — | i — | i — | i — | i — | ( i 37 | ) | ( i 37 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other |
i — | i 17 | i — | i 2 | i — | i 19 | ( i 2 | ) | i 17 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances as of December 31, 2021 |
$ | i 1 | $ | i 11,858 | $ | i 3,861 | $ | i 2,490 | $ | ( i 2,700 | ) | $ | i 15,510 | $ | i 756 | $ | i 16,266 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Cash flows from operating activities: |
||||||||||||
Net income |
$ | i 945 | $ | i 212 | $ | i 530 | ||||||
Less (income) loss from discontinued operations, net of taxes |
( i 27 | ) | i 486 | ( i 148 | ) | |||||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||||||
Amortization of fixed maturity securities discounts and premiums |
( i 176 | ) | ( i 157 | ) | ( i 131 | ) | ||||||
Net investment (gains) losses |
( i 323 | ) | ( i 492 | ) | ( i 27 | ) | ||||||
Charges assessed to policyholders |
( i 620 | ) | ( i 646 | ) | ( i 699 | ) | ||||||
Acquisition costs deferred |
( i 8 | ) | ( i 3 | ) | ( i 17 | ) | ||||||
Amortization of deferred acquisition costs and intangibles |
i 377 | i 463 | i 408 | |||||||||
Deferred income taxes |
i 290 | i 228 | i 119 | |||||||||
Derivative instruments, limited partnerships and other |
( i 359 | ) | ( i 112 | ) | ( i 82 | ) | ||||||
Stock-based compensation expense |
i 40 | i 39 | i 26 | |||||||||
Change in certain assets and liabilities: |
||||||||||||
Accrued investment income and other assets |
( i 129 | ) | ( i 92 | ) | ( i 359 | ) | ||||||
Insurance reserves |
i 642 | i 1,217 | i 1,259 | |||||||||
Current tax liabilities |
( i 34 | ) | i 6 | i 21 | ||||||||
Other liabilities, policy and contract claims and other policy-related balances |
i 310 | i 830 | i 636 | |||||||||
Cash from (used by) operating activities—discontinued operations |
( i 491 | ) | ( i 19 | ) | i 543 | |||||||
|
|
|
|
|
|
|||||||
Net cash from operating activities |
i 437 | i 1,960 | i 2,079 | |||||||||
|
|
|
|
|
|
|||||||
Cash flows from (used by) investing activities: |
||||||||||||
Proceeds from maturities and repayments of investments: |
||||||||||||
Fixed maturity securities |
i 4,162 | i 3,637 | i 3,131 | |||||||||
Commercial mortgage loans |
i 874 | i 744 | i 597 | |||||||||
Limited partnerships and other invested assets |
i 255 | i 182 | i 153 | |||||||||
Proceeds from sales of investments: |
||||||||||||
Fixed maturity and equity securities |
i 2,273 | i 3,040 | i 3,214 | |||||||||
Purchases and originations of investments: |
||||||||||||
Fixed maturity and equity securities |
( i 5,216 | ) | ( i 7,763 | ) | ( i 5,962 | ) | ||||||
Commercial mortgage loans |
( i 963 | ) | ( i 547 | ) | ( i 813 | ) | ||||||
Limited partnerships and other invested assets |
( i 767 | ) | ( i 449 | ) | ( i 476 | ) | ||||||
Short-term investments, net |
i 18 | i 35 | i 34 | |||||||||
Policy loans, net |
i 57 | i 190 | i 62 | |||||||||
Proceeds from sale of business, net of cash transferred |
i 270 | i — | i 1,398 | |||||||||
Cash used by investing activities—discontinued operations |
( i 67 | ) | ( i 222 | ) | ( i 37 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash from (used by) investing activities |
i 896 | ( i 1,153 | ) | i 1,301 | ||||||||
|
|
|
|
|
|
|||||||
Cash flows used by financing activities: |
||||||||||||
Deposits to universal life and investment contracts |
i 669 | i 862 | i 824 | |||||||||
Withdrawals from universal life and investment contracts |
( i 2,071 | ) | ( i 2,282 | ) | ( i 2,319 | ) | ||||||
Redemption of non-recourse funding obligations |
i — | ( i 315 | ) | i — | ||||||||
Proceeds from issuance of long-term debt |
i — | i 738 | i — | |||||||||
Repayment and repurchase of long-term debt |
( i 1,541 | ) | ( i 490 | ) | ( i 446 | ) | ||||||
Proceeds from sale of subsidiary shares to noncontrolling interests |
i 529 | i — | i — | |||||||||
Dividends paid to noncontrolling interests |
( i 37 | ) | i — | i — | ||||||||
Other, net |
i 32 | ( i 2 | ) | ( i 35 | ) | |||||||
Cash used by financing activities—discontinued operations |
i — | ( i 18 | ) | ( i 241 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash used by financing activities |
( i 2,419 | ) | ( i 1,507 | ) | ( i 2,217 | ) | ||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $( i 1), $ i 18
and $ i 1 related to discontinued operations) |
i 1 | i 15 | i 1 | |||||||||
|
|
|
|
|
|
|||||||
Net change in cash, cash equivalents and restricted cash |
( i 1,085 | ) | ( i 685 | ) | i 1,164 | |||||||
Cash, cash equivalents and restricted cash at beginning of period |
i 2,656 | i 3,341 | i 2,177 | |||||||||
|
|
|
|
|
|
|||||||
Cash, cash equivalents and restricted cash at end of period |
i 1,571 | i 2,656 | i 3,341 | |||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period |
i — | i 95 | i 79 | |||||||||
|
|
|
|
|
|
|||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period |
$ | i 1,571 | $ | i 2,561 | $ | i 3,262 | ||||||
|
|
|
|
|
|
• | Enact. |
• | U.S. Life Insurance. |
• | Runoff. |
• | Genworth Holdings early redeemed its i 7.625% and i 4.90%
senior notes in July 2021 and December 2021, respectively, originally due in September 2021 and August 2023, respectively. The 7.625% and 4.90% senior notes were redeemed with cash payments of $ i 532 million and $ i 334
million, respectively, comprised of the outstanding principal balances, accrued interest and make-whole premiums. We have no additional debt maturities until February 2024. Interest payments on our remaining senior notes are forecasted to be approximately $ i 65 million due between January 2022 through March 2023. See note 12 for additional details on our long-term borrowings. |
• | As part of the settlement agreement reached in July 2020 regarding the case titled AXA S.A. v. Genworth Financial International Holdings, LLC et al., |
• | Genworth Holdings received intercompany cash tax payments from its subsidiaries during the year ended December 31, 2021 generated from taxable income. Additional intercompany cash tax payments are expected in future periods. |
• | we did not expect full recovery of our amortized cost basis when due, |
• | the present value of cash flows expected to be collected was less than our amortized cost basis, |
• | we intended to sell a security or |
• | it was more likely than not that we would be required to sell a security prior to recovery. |
• | Level 1—Quoted prices for identical instruments in active markets. |
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations for which inputs are observable or where those significant value drivers are observable. |
• | Level 3—Instruments for which significant value drivers are unobservable. |
• | assumptions will no longer be locked-in at contract inception and all cash flow assumptions used to estimate the liability for future policy benefits (except the discount rate) will be reviewed at least annually in the same period each year or more frequently if actual experience indicates a change is required. Changes will be recorded in net income (loss) using a retrospective approach with a cumulative catch-up adjustment by recalculating the net premium ratio (which will be capped at 100%) using actual historical and updated future cash flow assumptions; |
• | the discount rate used to determine the liability for future policy benefits will be a current upper-medium grade (low credit risk) fixed-income instrument yield, which is generally interpreted to mean a single-A rated bond rate for the same duration, and is required to be reviewed quarterly, with changes in the discount rate recorded in other comprehensive income (loss); |
• | the provision for adverse deviation and the premium deficiency test will be eliminated; |
• | market risk benefits associated with deposit-type contracts will be measured at fair value with changes related to instrument-specific credit risk recorded in other comprehensive income (loss) and remaining changes recorded in net income (loss); |
• | the amortization method for DAC will generally be on a straight-line basis over the expected contract term; and |
• | disclosures will be greatly expanded to include significant assumptions and product liability rollforwards. |
(Amounts in millions, except per share amounts) |
2021 |
2020 |
2019 |
|||||||||
Weighted-average common shares used in basic earnings (loss) per share calculations |
i 506.9 | i 505.2 | i 502.9 | |||||||||
Potentially dilutive securities: |
||||||||||||
Stock options, restricted stock units and stock appreciation rights |
i 7.8 | i 6.4 | i 6.8 | |||||||||
|
|
|
|
|
|
|||||||
Weighted-average common shares used in diluted earnings (loss) per share calculations |
i 514.7 | i 511.6 | i 509.7 | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations: |
||||||||||||
Income from continuing operations |
$ | i 918 | $ | i 698 | $ | i 382 | ||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i 33 | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 885 | $ | i 698 | $ | i 382 | ||||||
|
|
|
|
|
|
|||||||
Basic per share |
$ | i 1.75 | $ | i 1.38 | $ | i 0.76 | ||||||
|
|
|
|
|
|
|||||||
Diluted per share |
$ | i 1.72 | $ | i 1.36 | $ | i 0.75 | ||||||
|
|
|
|
|
|
|||||||
Income (loss) from discontinued operations: |
||||||||||||
Income (loss) from discontinued operations, net of taxes |
$ | i 27 | $ | ( i 486 | ) | $ | i 148 | |||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i 8 | i 34 | i 187 | |||||||||
|
|
|
|
|
|
|||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 19 | $ | ( i 520 | ) | $ | ( i 39 | ) | ||||
|
|
|
|
|
|
|||||||
Basic per share |
$ | i 0.04 | $ | ( i 1.03 | ) | $ | ( i 0.08 | ) | ||||
|
|
|
|
|
|
|||||||
Diluted per share |
$ | i 0.04 | $ | ( i 1.02 | ) | $ | ( i 0.08 | ) | ||||
|
|
|
|
|
|
|||||||
Net income (loss): |
||||||||||||
Income from continuing operations |
$ | i 918 | $ | i 698 | $ | i 382 | ||||||
Income (loss) from discontinued operations, net of taxes |
i 27 | ( i 486 | ) | i 148 | ||||||||
|
|
|
|
|
|
|||||||
Net income |
i 945 | i 212 | i 530 | |||||||||
Less: net income attributable to noncontrolling interests |
i 41 | i 34 | i 187 | |||||||||
|
|
|
|
|
|
|||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
|
|
|
|
|
|
|||||||
Basic per share (1) |
$ | i 1.78 | $ | i 0.35 | $ | i 0.68 | ||||||
|
|
|
|
|
|
|||||||
Diluted per share (1) |
$ | i 1.76 | $ | i 0.35 | $ | i 0.67 | ||||||
|
|
|
|
|
|
(1) |
May not total due to whole number calculation. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Fixed maturity securities—taxable |
$ | i 2,411 | $ | i 2,448 | $ | i 2,444 | ||||||
Fixed maturity securities—non-taxable |
i 7 | i 6 | i 8 | |||||||||
Equity securities |
i 9 | i 12 | i 12 | |||||||||
Commercial mortgage loans |
i 376 | i 345 | i 348 | |||||||||
Policy loans |
i 189 | i 199 | i 180 | |||||||||
Limited partnerships |
i 223 | i 72 | i 44 | |||||||||
Other invested assets |
i 241 | i 223 | i 190 | |||||||||
Cash, cash equivalents, restricted cash and short-term investments |
i 1 | i 15 | i 33 | |||||||||
|
|
|
|
|
|
|||||||
Gross investment income before expenses and fees |
i 3,457 | i 3,320 | i 3,259 | |||||||||
Expenses and fees |
( i 87 | ) | ( i 93 | ) | ( i 95 | ) | ||||||
|
|
|
|
|
|
|||||||
Net investment income |
$ | i 3,370 | $ | i 3,227 | $ | i 3,164 | ||||||
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Realized investment gains (losses): |
||||||||||||
Available-for-sale fixed maturity securities: |
||||||||||||
Realized gains |
$ | i 67 | $ | i 471 | $ | i 90 | ||||||
Realized losses |
( i 10 | ) | ( i 29 | ) | ( i 38 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized gains (losses) on available-for-sale fixed maturity securities |
i 57 | i 442 | i 52 | |||||||||
Net realized gains (losses) on equity securities sold |
( i 7 | ) | ( i 1 | ) | i — | |||||||
Net realized gains (losses) on limited partnerships |
i 3 | i — | i 1 | |||||||||
|
|
|
|
|
|
|||||||
Total net realized investment gains (losses) |
i 53 | i 441 | i 53 | |||||||||
|
|
|
|
|
|
|||||||
Impairments: |
||||||||||||
Total other-than-temporary impairments |
i — | i — | ( i 1 | ) | ||||||||
Portion of other-than-temporary impairments included in other comprehensive income (loss) |
i — | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Net other-than-temporary impairments |
i — | i — | ( i 1 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities |
( i 6 | ) | ( i 5 | ) | i — | |||||||
Write-down of available-for-sale fixed maturity securities (1) |
( i 1 | ) | ( i 4 | ) | i — | |||||||
Net unrealized gains (losses) on equity securities still held |
i 1 | i 4 | i 14 | |||||||||
Net unrealized gains (losses) on limited partnerships |
i 264 | i 112 | i 28 | |||||||||
Commercial mortgage loans |
( i 3 | ) | ( i 2 | ) | ( i 2 | ) | ||||||
Derivative instruments (2) |
i 14 | ( i 49 | ) | ( i 70 | ) | |||||||
Other |
i 1 | ( i 5 | ) | i 5 | ||||||||
|
|
|
|
|
|
|||||||
Net investment gains (losses) |
$ | i 323 | $ | i 492 | $ | i 27 | ||||||
|
|
|
|
|
|
(1) |
Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis. |
(2) |
See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
2021 |
||||||||||||||||||||||||||||||||
(Amounts in millions) |
Beginning balance |
Increase from securities without allowance in previous periods |
Increase (decrease) from securities with allowance in previous periods |
Securities sold |
Decrease due to change in intent or requirement to sell |
Write-offs |
Recoveries |
Ending balance |
||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||
Non-U.S. corporate |
$ | i 1 | $ | i — | $ | i 6 | $ | ( i 7 | ) | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
Commercial mortgage-backed |
i 3 | i — | i — | i — | i — | ( i 3 | ) | i — | i — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total available-for-sale fixed maturity securities |
$ | i 4 | $ | i — | $ | i 6 | $ | ( i 7 | ) | $ | i — | $ | ( i 3 | ) | $ | i — | $ | i — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2020 |
||||||||||||||||||||||||||||||||
(Amounts in millions) |
Beginning balance |
Increase from securities without allowance in previous periods |
Increase (decrease) from securities with allowance in previous periods |
Securities sold |
Decrease due to change in intent or requirement to sell |
Write-offs |
Recoveries |
Ending balance |
||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||
Non-U.S. corporate |
$ | i — | $ | i 4 | $ | ( i 2 | ) | $ | ( i 1 | ) | $ | i — | $ | i — | $ | i — | $ | i 1 | ||||||||||||||
Commercial mortgage-backed |
i — | i 3 | i — | i — | i — | i — | i — | i 3 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total available-for-sale fixed maturity securities |
$ | i — | $ | i 7 | $ | ( i 2 | ) | $ | ( i 1 | ) | $ | i — | $ | i — | $ | i — | $ | i 4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
||||
Beginning balance |
$ | i 24 | ||
Reductions: |
||||
Securities sold, paid down or disposed |
( i 2 | ) | ||
|
|
|||
Ending balance |
$ | i 22 | ||
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) |
$ | i 7,869 | $ | i 10,159 | $ | i 6,676 | ||||||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) |
i — | ( i 7 | ) | i — | ||||||||
Adjustments to DAC, PVFP, sales inducements, benefit reserves and policyholder contract balances |
( i 5,487 | ) | ( i 7,302 | ) | ( i 4,789 | ) | ||||||
Income taxes, net |
( i 507 | ) | ( i 611 | ) | ( i 406 | ) | ||||||
|
|
|
|
|
|
|||||||
Net unrealized investment gains (losses) |
i 1,875 | i 2,239 | i 1,481 | |||||||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests |
i 15 | i 25 | i 25 | |||||||||
|
|
|
|
|
|
|||||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. |
$ | i 1,860 | $ | i 2,214 | $ | i 1,456 | ||||||
|
|
|
|
|
|
(1) |
Excludes foreign exchange. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Beginning balance |
$ | i 2,214 | $ | i 1,456 | $ | i 595 | ||||||
Unrealized gains (losses) arising during the period: |
||||||||||||
Unrealized gains (losses) on fixed maturity securities |
( i 2,218 | ) | i 3,950 | i 4,980 | ||||||||
Adjustment to DAC (1) |
i 30 | i 122 | ( i 956 | ) | ||||||||
Adjustment to PVFP |
i — | ( i 1 | ) | ( i 49 | ) | |||||||
Adjustment to sales inducements |
i 12 | ( i 5 | ) | ( i 32 | ) | |||||||
Adjustment to benefit reserves and policyholder contract balances (2) |
i 1,773 | ( i 2,629 | ) | ( i 2,800 | ) | |||||||
Provision for income taxes |
i 90 | ( i 305 | ) | ( i 233 | ) | |||||||
|
|
|
|
|
|
|||||||
Change in unrealized gains (losses) on investment securities |
( i 313 | ) | i 1,132 | i 910 | ||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $ i 14, $ i 100
and $ i 17 |
( i 51 | ) | ( i 374 | ) | ( i 62 | ) | ||||||
|
|
|
|
|
|
|||||||
Change in net unrealized investment gains (losses) |
( i 364 | ) | i 758 | i 848 | ||||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests |
( i 10 | ) | i — | ( i 13 | ) | |||||||
|
|
|
|
|
|
|||||||
Ending balance |
$ | i 1,860 | $ | i 2,214 | $ | i 1,456 | ||||||
|
|
|
|
|
|
(1) |
See note 6 for additional information. |
(2) |
See note 9 for additional information. |
(Amounts in millions) |
Amortized cost or cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | i 3,368 | $ | i 1,184 | $ | i — | $ | i — | $ | i 4,552 | ||||||||||
State and political subdivisions |
i 2,982 | i 474 | ( i 6 | ) | i — | i 3,450 | ||||||||||||||
Non-U.S. government |
i 762 | i 86 | ( i 13 | ) | i — | i 835 | ||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
i 4,330 | i 783 | ( i 9 | ) | i — | i 5,104 | ||||||||||||||
Energy |
i 2,581 | i 363 | ( i 10 | ) | i — | i 2,934 | ||||||||||||||
Finance and insurance |
i 8,003 | i 1,012 | ( i 24 | ) | i — | i 8,991 | ||||||||||||||
Consumer—non-cyclical |
i 5,138 | i 1,029 | ( i 8 | ) | i — | i 6,159 | ||||||||||||||
Technology and communications |
i 3,345 | i 476 | ( i 13 | ) | i — | i 3,808 | ||||||||||||||
Industrial |
i 1,322 | i 175 | ( i 3 | ) | i — | i 1,494 | ||||||||||||||
Capital goods |
i 2,334 | i 415 | ( i 4 | ) | i — | i 2,745 | ||||||||||||||
Consumer—cyclical |
i 1,703 | i 203 | ( i 7 | ) | i — | i 1,899 | ||||||||||||||
Transportation |
i 1,122 | i 249 | i — | i — | i 1,371 | |||||||||||||||
Other |
i 379 | i 41 | ( i 1 | ) | i — | i 419 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
i 30,257 | i 4,746 | ( i 79 | ) | i — | i 34,924 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
i 867 | i 63 | ( i 2 | ) | i — | i 928 | ||||||||||||||
Energy |
i 1,194 | i 190 | ( i 1 | ) | i — | i 1,383 | ||||||||||||||
Finance and insurance |
i 2,171 | i 270 | ( i 9 | ) | i — | i 2,432 | ||||||||||||||
Consumer—non-cyclical |
i 664 | i 81 | ( i 2 | ) | i — | i 743 | ||||||||||||||
Technology and communications |
i 1,085 | i 166 | ( i 1 | ) | i — | i 1,250 | ||||||||||||||
Industrial |
i 933 | i 117 | ( i 3 | ) | i — | i 1,047 | ||||||||||||||
Capital goods |
i 640 | i 66 | ( i 1 | ) | i — | i 705 | ||||||||||||||
Consumer—cyclical |
i 316 | i 27 | ( i 2 | ) | i — | i 341 | ||||||||||||||
Transportation |
i 422 | i 68 | ( i 1 | ) | i — | i 489 | ||||||||||||||
Other |
i 1,052 | i 169 | ( i 4 | ) | i — | i 1,217 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
i 9,344 | i 1,217 | ( i 26 | ) | i — | i 10,535 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
i 1,325 | i 116 | ( i 1 | ) | i — | i 1,440 | ||||||||||||||
Commercial mortgage-backed |
i 2,435 | i 152 | ( i 3 | ) | i — | i 2,584 | ||||||||||||||
Other asset-backed |
i 2,138 | i 29 | ( i 7 | ) | i — | i 2,160 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale fixed maturity securities |
$ | i 52,611 | $ | i 8,004 | $ | ( i 135 | ) | $ | i — | $ | i 60,480 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Amortized cost or cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | i 3,401 | $ | i 1,404 | $ | i — | $ | i — | $ | i 4,805 | ||||||||||
State and political subdivisions |
i 2,622 | i 544 | ( i 1 | ) | i — | i 3,165 | ||||||||||||||
Non-U.S. government |
i 728 | i 130 | ( i 4 | ) | i — | i 854 | ||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
i 4,226 | i 970 | ( i 2 | ) | i — | i 5,194 | ||||||||||||||
Energy |
i 2,532 | i 367 | ( i 16 | ) | i — | i 2,883 | ||||||||||||||
Finance and insurance |
i 7,798 | i 1,306 | ( i 2 | ) | i — | i 9,102 | ||||||||||||||
Consumer—non-cyclical |
i 5,115 | i 1,323 | ( i 1 | ) | i — | i 6,437 | ||||||||||||||
Technology and communications |
i 3,142 | i 619 | i — | i — | i 3,761 | |||||||||||||||
Industrial |
i 1,370 | i 232 | i — | i — | i 1,602 | |||||||||||||||
Capital goods |
i 2,456 | i 535 | i — | i — | i 2,991 | |||||||||||||||
Consumer—cyclical |
i 1,663 | i 284 | i — | i — | i 1,947 | |||||||||||||||
Transportation |
i 1,198 | i 304 | ( i 2 | ) | i — | i 1,500 | ||||||||||||||
Other |
i 395 | i 45 | i — | i — | i 440 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
i 29,895 | i 5,985 | ( i 23 | ) | i — | i 35,857 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
i 838 | i 84 | i — | i — | i 922 | |||||||||||||||
Energy |
i 1,172 | i 209 | ( i 1 | ) | i — | i 1,380 | ||||||||||||||
Finance and insurance |
i 2,130 | i 353 | ( i 6 | ) | ( i 1 | ) | i 2,476 | |||||||||||||
Consumer—non-cyclical |
i 662 | i 112 | ( i 1 | ) | i — | i 773 | ||||||||||||||
Technology and communications |
i 1,062 | i 229 | i — | i — | i 1,291 | |||||||||||||||
Industrial |
i 969 | i 159 | i — | i — | i 1,128 | |||||||||||||||
Capital goods |
i 510 | i 67 | ( i 1 | ) | i — | i 576 | ||||||||||||||
Consumer—cyclical |
i 331 | i 41 | ( i 1 | ) | i — | i 371 | ||||||||||||||
Transportation |
i 483 | i 88 | ( i 1 | ) | i — | i 570 | ||||||||||||||
Other |
i 1,088 | i 236 | i — | i — | i 1,324 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
i 9,245 | i 1,578 | ( i 11 | ) | ( i 1 | ) | i 10,811 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
i 1,698 | i 211 | i — | i — | i 1,909 | |||||||||||||||
Commercial mortgage-backed |
i 2,759 | i 231 | ( i 13 | ) | ( i 3 | ) | i 2,974 | |||||||||||||
Other asset-backed |
i 3,069 | i 55 | ( i 4 | ) | i — | i 3,120 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale fixed maturity securities |
$ | i 53,417 | $ | i 10,138 | $ | ( i 56 | ) | $ | ( i 4 | ) | $ | i 63,495 | ||||||||
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | i 339 | $ | ( i 6 | ) | i 67 | $ | i — | $ | i — | i — | $ | i 339 | $ | ( i 6 | ) | i 67 | |||||||||||||||||||
Non-U.S. government |
i 173 | ( i 9 | ) | i 28 | i 19 | ( i 4 | ) | i 1 | i 192 | ( i 13 | ) | i 29 | ||||||||||||||||||||||||
U.S. corporate |
i 2,593 | ( i 64 | ) | i 266 | i 196 | ( i 15 | ) | i 22 | i 2,789 | ( i 79 | ) | i 288 | ||||||||||||||||||||||||
Non-U.S. corporate |
i 912 | ( i 21 | ) | i 124 | i 62 | ( i 5 | ) | i 8 | i 974 | ( i 26 | ) | i 132 | ||||||||||||||||||||||||
Residential mortgage-backed |
i 97 | ( i 1 | ) | i 22 | i — | i — | i — | i 97 | ( i 1 | ) | i 22 | |||||||||||||||||||||||||
Commercial mortgage-backed |
i 113 | ( i 2 | ) | i 17 | i 31 | ( i 1 | ) | i 4 | i 144 | ( i 3 | ) | i 21 | ||||||||||||||||||||||||
Other asset-backed |
i 764 | ( i 7 | ) | i 111 | i — | i — | i — | i 764 | ( i 7 | ) | i 111 | |||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 4,991 | $ | ( i 110 | ) | i 635 | $ | i 308 | $ | ( i 25 | ) | i 35 | $ | i 5,299 | $ | ( i 135 | ) | i 670 | ||||||||||||||||||
% Below cost: |
||||||||||||||||||||||||||||||||||||
<20% Below cost |
$ | i 4,991 | $ | ( i 110 | ) | i 635 | $ | i 297 | $ | ( i 20 | ) | i 33 | $ | i 5,288 | $ | ( i 130 | ) | i 668 | ||||||||||||||||||
20%-50% Below cost |
i — | i — | i — | i 11 | ( i 5 | ) | i 2 | i 11 | ( i 5 | ) | i 2 | |||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 4,991 | $ | ( i 110 | ) | i 635 | $ | i 308 | $ | ( i 25 | ) | i 35 | $ | i 5,299 | $ | ( i 135 | ) | i 670 | ||||||||||||||||||
Investment grade |
$ | i 4,644 | $ | ( i 101 | ) | i 587 | $ | i 241 | $ | ( i 12 | ) | i 25 | $ | i 4,885 | $ | ( i 113 | ) | i 612 | ||||||||||||||||||
Below investment grade |
i 347 | ( i 9 | ) | i 48 | i 67 | ( i 13 | ) | i 10 | i 414 | ( i 22 | ) | i 58 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 4,991 | $ | ( i 110 | ) | i 635 | $ | i 308 | $ | ( i 25 | ) | i 35 | $ | i 5,299 | $ | ( i 135 | ) | i 670 | ||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
$ | i 211 | $ | ( i 7 | ) | i 32 | $ | i 29 | $ | ( i 2 | ) | i 7 | $ | i 240 | $ | ( i 9 | ) | i 39 | ||||||||||||||||||
Energy |
i 166 | ( i 3 | ) | i 18 | i 25 | ( i 7 | ) | i 4 | i 191 | ( i 10 | ) | i 22 | ||||||||||||||||||||||||
Finance and insurance |
i 960 | ( i 22 | ) | i 89 | i 62 | ( i 2 | ) | i 3 | i 1,022 | ( i 24 | ) | i 92 | ||||||||||||||||||||||||
Consumer—non-cyclical |
i 296 | ( i 7 | ) | i 30 | i 14 | ( i 1 | ) | i 2 | i 310 | ( i 8 | ) | i 32 | ||||||||||||||||||||||||
Technology and |
||||||||||||||||||||||||||||||||||||
communications |
i 378 | ( i 12 | ) | i 37 | i 29 | ( i 1 | ) | i 2 | i 407 | ( i 13 | ) | i 39 | ||||||||||||||||||||||||
Industrial |
i 143 | ( i 3 | ) | i 18 | i — | i — | i — | i 143 | ( i 3 | ) | i 18 | |||||||||||||||||||||||||
Capital goods |
i 171 | ( i 3 | ) | i 16 | i 18 | ( i 1 | ) | i 2 | i 189 | ( i 4 | ) | i 18 | ||||||||||||||||||||||||
Consumer—cyclical |
i 268 | ( i 7 | ) | i 26 | i — | i — | i — | i 268 | ( i 7 | ) | i 26 | |||||||||||||||||||||||||
Other |
i — | i — | i — | i 19 | ( i 1 | ) | i 2 | i 19 | ( i 1 | ) | i 2 | |||||||||||||||||||||||||
Subtotal, U.S. corporate securities |
i 2,593 | ( i 64 | ) | i 266 | i 196 | ( i 15 | ) | i 22 | i 2,789 | ( i 79 | ) | i 288 | ||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
i 69 | ( i 2 | ) | i 9 | i — | i — | i — | i 69 | ( i 2 | ) | i 9 | |||||||||||||||||||||||||
Energy |
i 64 | ( i 1 | ) | i 10 | i — | i — | i — | i 64 | ( i 1 | ) | i 10 | |||||||||||||||||||||||||
Finance and insurance |
i 366 | ( i 8 | ) | i 43 | i 18 | ( i 1 | ) | i 2 | i 384 | ( i 9 | ) | i 45 | ||||||||||||||||||||||||
Consumer—non-cyclical |
i 67 | ( i 1 | ) | i 12 | i 6 | ( i 1 | ) | i 1 | i 73 | ( i 2 | ) | i 13 | ||||||||||||||||||||||||
Technology and |
||||||||||||||||||||||||||||||||||||
communications |
i 48 | ( i 1 | ) | i 8 | i — | i — | i — | i 48 | ( i 1 | ) | i 8 | |||||||||||||||||||||||||
Industrial |
i 122 | ( i 3 | ) | i 14 | i — | i — | i — | i 122 | ( i 3 | ) | i 14 | |||||||||||||||||||||||||
Capital goods |
i 78 | ( i 1 | ) | i 8 | i — | i — | i — | i 78 | ( i 1 | ) | i 8 | |||||||||||||||||||||||||
Consumer—cyclical |
i 22 | ( i 1 | ) | i 8 | i 15 | ( i 1 | ) | i 3 | i 37 | ( i 2 | ) | i 11 | ||||||||||||||||||||||||
Transportation |
i 37 | ( i 1 | ) | i 7 | i — | i — | i — | i 37 | ( i 1 | ) | i 7 | |||||||||||||||||||||||||
Other |
i 39 | ( i 2 | ) | i 5 | i 23 | ( i 2 | ) | i 2 | i 62 | ( i 4 | ) | i 7 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities |
i 912 | ( i 21 | ) | i 124 | i 62 | ( i 5 | ) | i 8 | i 974 | ( i 26 | ) | i 132 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position |
$ | i 3,505 | $ | ( i 85 | ) | i 390 | $ | i 258 | $ | ( i 20 | ) | i 30 | $ | i 3,763 | $ | ( i 105 | ) | i 420 | ||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | i 28 | $ | ( i 1 | ) | i 6 | $ | i — | $ | i — | i — | $ | i 28 | $ | ( i 1 | ) | i 6 | |||||||||||||||||||
Non-U.S. government |
i 44 | ( i 4 | ) | i 5 | i — | i — | i — | i 44 | ( i 4 | ) | i 5 | |||||||||||||||||||||||||
U.S. corporate |
i 345 | ( i 20 | ) | i 59 | i 33 | ( i 3 | ) | i 4 | i 378 | ( i 23 | ) | i 63 | ||||||||||||||||||||||||
Non-U.S. corporate |
i 145 | ( i 4 | ) | i 32 | i 6 | ( i 1 | ) | i 1 | i 151 | ( i 5 | ) | i 33 | ||||||||||||||||||||||||
Commercial mortgage-backed |
i 227 | ( i 11 | ) | i 34 | i 1 | ( i 1 | ) | i 1 | i 228 | ( i 12 | ) | i 35 | ||||||||||||||||||||||||
Other asset-backed |
i 238 | ( i 2 | ) | i 60 | i 207 | ( i 2 | ) | i 48 | i 445 | ( i 4 | ) | i 108 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 1,027 | $ | ( i 42 | ) | i 196 | $ | i 247 | $ | ( i 7 | ) | i 54 | $ | i 1,274 | $ | ( i 49 | ) | i 250 | ||||||||||||||||||
% Below cost: |
||||||||||||||||||||||||||||||||||||
<20% Below cost |
$ | i 1,017 | $ | ( i 35 | ) | i 194 | $ | i 246 | $ | ( i 6 | ) | i 53 | $ | i 1,263 | $ | ( i 41 | ) | i 247 | ||||||||||||||||||
20%-50% Below cost |
i 10 | ( i 7 | ) | i 2 | i 1 | ( i 1 | ) | i 1 | i 11 | ( i 8 | ) | i 3 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 1,027 | $ | ( i 42 | ) | i 196 | $ | i 247 | $ | ( i 7 | ) | i 54 | $ | i 1,274 | $ | ( i 49 | ) | i 250 | ||||||||||||||||||
Investment grade |
$ | i 852 | $ | ( i 23 | ) | i 163 | $ | i 207 | $ | ( i 2 | ) | i 48 | $ | i 1,059 | $ | ( i 25 | ) | i 211 | ||||||||||||||||||
Below investment grade |
i 175 | ( i 19 | ) | i 33 | i 40 | ( i 5 | ) | i 6 | i 215 | ( i 24 | ) | i 39 | ||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | i 1,027 | $ | ( i 42 | ) | i 196 | $ | i 247 | $ | ( i 7 | ) | i 54 | $ | i 1,274 | $ | ( i 49 | ) | i 250 | ||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
$ | i 49 | $ | ( i 2 | ) | i 9 | $ | i — | $ | i — | i — | $ | i 49 | $ | ( i 2 | ) | i 9 | |||||||||||||||||||
Energy |
i 106 | ( i 13 | ) | i 19 | i 33 | ( i 3 | ) | i 4 | i 139 | ( i 16 | ) | i 23 | ||||||||||||||||||||||||
Finance and insurance |
i 128 | ( i 2 | ) | i 15 | i — | i — | i — | i 128 | ( i 2 | ) | i 15 | |||||||||||||||||||||||||
Consumer—non-cyclical |
i 16 | ( i 1 | ) | i 5 | i — | i — | i — | i 16 | ( i 1 | ) | i 5 | |||||||||||||||||||||||||
Transportation |
i 46 | ( i 2 | ) | i 11 | i — | i — | i — | i 46 | ( i 2 | ) | i 11 | |||||||||||||||||||||||||
Subtotal, U.S. corporate securities |
i 345 | ( i 20 | ) | i 59 | i 33 | ( i 3 | ) | i 4 | i 378 | ( i 23 | ) | i 63 | ||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Energy |
i 66 | ( i 1 | ) | i 10 | i — | i — | i — | i 66 | ( i 1 | ) | i 10 | |||||||||||||||||||||||||
Consumer—non-cyclical |
i — | i — | i — | i 6 | ( i 1 | ) | i 1 | i 6 | ( i 1 | ) | i 1 | |||||||||||||||||||||||||
Capital goods |
i 31 | ( i 1 | ) | i 8 | i — | i — | i — | i 31 | ( i 1 | ) | i 8 | |||||||||||||||||||||||||
Consumer—cyclical |
i 15 | ( i 1 | ) | i 6 | i — | i — | i — | i 15 | ( i 1 | ) | i 6 | |||||||||||||||||||||||||
Transportation |
i 33 | ( i 1 | ) | i 8 | i — | i — | i — | i 33 | ( i 1 | ) | i 8 | |||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities |
i 145 | ( i 4 | ) | i 32 | i 6 | ( i 1 | ) | i 1 | i 151 | ( i 5 | ) | i 33 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position |
$ | i 490 | $ | ( i 24 | ) | i 91 | $ | i 39 | $ | ( i 4 | ) | i 5 | $ | i 529 | $ | ( i 28 | ) | i 96 | ||||||||||||||||||
(Amounts in millions) |
Amortized cost or cost |
Fair value |
||||||
Due one year or less |
$ | i 1,475 | $ | i 1,499 | ||||
Due after one year through five years |
i 8,254 | i 8,807 | ||||||
Due after five years through ten years |
i 13,722 | i 15,053 | ||||||
Due after ten years |
i 23,262 | i 28,937 | ||||||
Subtotal |
i 46,713 | i 54,296 | ||||||
Residential mortgage-backed |
i 1,325 | i 1,440 | ||||||
Commercial mortgage-backed |
i 2,435 | i 2,584 | ||||||
Other asset-backed |
i 2,138 | i 2,160 | ||||||
Total |
$ | i 52,611 | $ | i 60,480 | ||||
2021 |
2020 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Property type: |
||||||||||||||||
Retail |
$ | i 2,774 | i 40 | % | $ | i 2,442 | i 36 | % | ||||||||
Office |
i 1,526 | i 22 | i 1,567 | i 23 | ||||||||||||
Industrial |
i 1,420 | i 21 | i 1,638 | i 24 | ||||||||||||
Apartments |
i 585 | i 9 | i 529 | i 8 | ||||||||||||
Mixed use |
i 330 | i 5 | i 286 | i 4 | ||||||||||||
Other |
i 221 | i 3 | i 312 | i 5 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
i 6,856 | i 100 | % | i 6,774 | i 100 | % | ||||||||||
|
|
|
|
|||||||||||||
Allowance for credit losses |
( i 26 | ) | ( i 31 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Total |
$ | i 6,830 | $ | i 6,743 | ||||||||||||
|
|
|
|
2021 |
2020 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Geographic region: |
||||||||||||||||
South Atlantic |
$ | i 1,770 | i 26 | % | $ | i 1,711 | i 25 | % | ||||||||
Pacific |
i 1,360 | i 20 | i 1,510 | i 22 | ||||||||||||
Middle Atlantic |
i 964 | i 14 | i 994 | i 15 | ||||||||||||
Mountain |
i 892 | i 13 | i 781 | i 12 | ||||||||||||
West South Central |
i 483 | i 7 | i 423 | i 6 | ||||||||||||
East North Central |
i 465 | i 7 | i 441 | i 6 | ||||||||||||
West North Central |
i 461 | i 7 | i 467 | i 7 | ||||||||||||
New England |
i 237 | i 3 | i 260 | i 4 | ||||||||||||
East South Central |
i 224 | i 3 | i 187 | i 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
i 6,856 | i 100 | % | i 6,774 | i 100 | % | ||||||||||
|
|
|
|
|||||||||||||
Allowance for credit losses |
( i 26 | ) | ( i 31 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Total |
$ | i 6,830 | $ | i 6,743 | ||||||||||||
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Allowance for credit losses: |
||||||||||||
Beginning balance |
$ | i 31 | $ | i 13 | $ | i 9 | ||||||
Cumulative effect of change in accounting |
i — | i 16 | i — | |||||||||
Provision |
i 3 | i 2 | i 4 | |||||||||
Write-offs |
( i 8 | ) | i — | i — | ||||||||
Recoveries |
i — | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Ending balance |
$ | i 26 | $ | i 31 | $ | i 13 | ||||||
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
2018 |
2017 |
2016 and prior |
Total |
|||||||||||||||||||||
Debt-to-value: |
||||||||||||||||||||||||||||
0% - 50% |
$ | i 20 | $ | i 72 | $ | i 53 | $ | i 158 | $ | i 203 | $ | i 1,974 | $ | i 2,480 | ||||||||||||||
51% - 60% |
i 43 | i 25 | i 170 | i 275 | i 257 | i 769 | i 1,539 | |||||||||||||||||||||
61% - 75% |
i 889 | i 428 | i 509 | i 449 | i 127 | i 413 | i 2,815 | |||||||||||||||||||||
76% - 100% |
i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
Greater than 100% |
i — | i — | i — | i — | i 22 | i — | i 22 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total amortized cost |
$ | i 952 | $ | i 525 | $ | i 732 | $ | i 882 | $ | i 609 | $ | i 3,156 | $ | i 6,856 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Debt service coverage ratio: |
||||||||||||||||||||||||||||
Less than 1.00 |
$ | i — | $ | i 10 | $ | i 19 | $ | i 41 | $ | i 42 | $ | i 111 | $ | i 223 | ||||||||||||||
1.00 - 1.25 |
i 3 | i 70 | i 73 | i 81 | i 36 | i 296 | i 559 | |||||||||||||||||||||
1.26 - 1.50 |
i 118 | i 32 | i 168 | i 135 | i 42 | i 296 | i 791 | |||||||||||||||||||||
1.51 - 2.00 |
i 728 | i 220 | i 273 | i 443 | i 263 | i 1,031 | i 2,958 | |||||||||||||||||||||
Greater than 2.00 |
i 103 | i 193 | i 199 | i 182 | i 226 | i 1,422 | i 2,325 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total amortized cost |
$ | i 952 | $ | i 525 | $ | i 732 | $ | i 882 | $ | i 609 | $ | i 3,156 | $ | i 6,856 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Write-offs, gross |
$ | i — | $ | i — | $ | i — | $ | i — | $ | i 8 | $ | i — | $ | i 8 | ||||||||||||||
Recoveries |
i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Write-offs, net |
$ | i — | $ | i — | $ | i — | $ | i — | $ | i 8 | $ | i — | $ | i 8 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
||||||||||||||||||||||||
(Amounts in millions) |
0% - 50% |
51% - 60% |
61% - 75% |
76% - 100% |
Greater than 100% |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | i 853 | $ | i 611 | $ | i 1,310 | $ | i — | $ | i — | $ | i 2,774 | ||||||||||||
Office |
i 505 | i 395 | i 604 | i — | i 22 | i 1,526 | ||||||||||||||||||
Industrial |
i 745 | i 240 | i 435 | i — | i — | i 1,420 | ||||||||||||||||||
Apartments |
i 200 | i 102 | i 283 | i — | i — | i 585 | ||||||||||||||||||
Mixed use |
i 120 | i 70 | i 140 | i — | i — | i 330 | ||||||||||||||||||
Other |
i 57 | i 121 | i 43 | i — | i — | i 221 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | i 2,480 | $ | i 1,539 | $ | i 2,815 | $ | i — | $ | i 22 | $ | i 6,856 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
i 36 | % | i 23 | % | i 41 | % | i — | % | i — | % | i 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt service coverage ratio |
i 2.36 | i 1.83 | i 1.61 | i — | i 0.68 | i 1.93 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||||||
(Amounts in millions) |
0% - 50% |
51% - 60% |
61% - 75% |
76% - 100% |
Greater than 100% |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | i 913 | $ | i 639 | $ | i 859 | $ | i 29 | $ | i 2 | $ | i 2,442 | ||||||||||||
Office |
i 523 | i 431 | i 595 | i 18 | i — | i 1,567 | ||||||||||||||||||
Industrial |
i 798 | i 351 | i 456 | i 33 | i — | i 1,638 | ||||||||||||||||||
Apartments |
i 199 | i 86 | i 238 | i 6 | i — | i 529 | ||||||||||||||||||
Mixed use |
i 112 | i 47 | i 127 | i — | i — | i 286 | ||||||||||||||||||
Other |
i 100 | i 74 | i 121 | i 17 | i — | i 312 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | i 2,645 | $ | i 1,628 | $ | i 2,396 | $ | i 103 | $ | i 2 | $ | i 6,774 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
i 39 | % | i 24 | % | i 35 | % | i 2 | % | i — | % | i 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt service coverage ratio |
i 2.40 | i 1.83 | i 1.61 | i 1.49 | i 0.64 | i 1.97 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
||||||||||||||||||||||||
(Amounts in millions) |
Less than 1.00 |
1.00 - 1.25 |
1.26 - 1.50 |
1.51 - 2.00 |
Greater than 2.00 |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | i 102 | $ | i 166 | $ | i 405 | $ | i 1,375 | $ | i 726 | $ | i 2,774 | ||||||||||||
Office |
i 67 | i 109 | i 167 | i 593 | i 590 | i 1,526 | ||||||||||||||||||
Industrial |
i 9 | i 64 | i 82 | i 599 | i 666 | i 1,420 | ||||||||||||||||||
Apartments |
i 17 | i 62 | i 84 | i 225 | i 197 | i 585 | ||||||||||||||||||
Mixed use |
i 24 | i 32 | i 40 | i 118 | i 116 | i 330 | ||||||||||||||||||
Other |
i 4 | i 126 | i 13 | i 48 | i 30 | i 221 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | i 223 | $ | i 559 | $ | i 791 | $ | i 2,958 | $ | i 2,325 | $ | i 6,856 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
i 3 | % | i 8 | % | i 12 | % | i 43 | % | i 34 | % | i 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt-to-value |
i 68 | % | i 61 | % | i 61 | % | i 60 | % | i 43 | % | i 55 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||||||
(Amounts in millions) |
Less than 1.00 |
1.00 - 1.25 |
1.26 - 1.50 |
1.51 - 2.00 |
Greater than 2.00 |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | i 55 | $ | i 169 | $ | i 483 | $ | i 969 | $ | i 766 | $ | i 2,442 | ||||||||||||
Office |
i 101 | i 99 | i 170 | i 634 | i 563 | i 1,567 | ||||||||||||||||||
Industrial |
i 21 | i 85 | i 143 | i 616 | i 773 | i 1,638 | ||||||||||||||||||
Apartments |
i 9 | i 24 | i 126 | i 228 | i 142 | i 529 | ||||||||||||||||||
Mixed use |
i 5 | i 24 | i 29 | i 115 | i 113 | i 286 | ||||||||||||||||||
Other |
i 25 | i 125 | i 41 | i 28 | i 93 | i 312 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | i 216 | $ | i 526 | $ | i 992 | $ | i 2,590 | $ | i 2,450 | $ | i 6,774 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
i 3 | % | i 8 | % | i 15 | % | i 38 | % | i 36 | % | i 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt-to-value |
i 57 | % | i 62 | % | i 62 | % | i 57 | % | i 44 | % | i 53 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets |
Derivative liabilities |
|||||||||||||||||||
Fair value |
Fair value |
|||||||||||||||||||
(Amounts in millions) |
Balance sheet classification |
2021 |
2020 |
Balance sheet classification |
2021 |
2020 |
||||||||||||||
Derivatives designated as hedges |
||||||||||||||||||||
Cash flow hedges: |
||||||||||||||||||||
Interest rate swaps |
Other invested assets | $ | i 364 | $ | i 468 | Other liabilities | $ | i 26 | $ | i 23 | ||||||||||
Foreign currency swaps |
Other invested assets | i 6 | i 1 | Other liabilities | i — | i 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total cash flow hedges |
i 370 | i 469 | i 26 | i 25 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives designated as hedges |
i 370 | i 469 | i 26 | i 25 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
Equity index options |
Other invested assets | i 42 | i 63 | Other liabilities | i — | i — | ||||||||||||||
Financial futures |
Other invested assets | i — | i — | Other liabilities | i — | i — | ||||||||||||||
Other foreign currency contracts |
Other invested assets | i 2 | i 42 | Other liabilities | i — | i 1 | ||||||||||||||
GMWB embedded derivatives |
Reinsurance recoverable (1) |
i 19 | i 26 | Policyholder account balances (2) |
i 271 | i 379 | ||||||||||||||
Fixed index annuity embedded derivatives |
Other assets | i — | i — | Policyholder account balances (3) |
i 294 | i 399 | ||||||||||||||
Indexed universal life embedded derivatives |
Reinsurance recoverable | i — | i — | Policyholder account balances (4) |
i 25 | i 26 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives not designated as hedges |
i 63 | i 131 | i 590 | i 805 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives |
$ | i 433 | $ | i 600 | $ | i 616 | $ | i 830 | ||||||||||||
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(2) |
Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
(3) |
Represents the embedded derivatives associated with our fixed index annuity liabilities. |
(4) |
Represents the embedded derivatives associated with our indexed universal life liabilities. |
(Notional in millions) |
Measurement |
Additions |
Maturities/ terminations |
|||||||||||||||||
Derivatives designated as hedges |
||||||||||||||||||||
Cash flow hedges: |
||||||||||||||||||||
Interest rate swaps |
Notional | $ | i 8,178 | $ | i — | $ | ( i 525 | ) | $ | i 7,653 | ||||||||||
Foreign currency swaps |
Notional | i 127 | i — | i — | i 127 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total cash flow hedges |
i 8,305 | i — | ( i 525 | ) | i 7,780 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives designated as hedges |
i 8,305 | i — | ( i 525 | ) | i 7,780 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
Interest rate swaps |
Notional | i 4,674 | i — | ( i 4,674 | ) | i — | ||||||||||||||
Equity index options |
Notional | i 2,000 | i 1,438 | ( i 1,992 | ) | i 1,446 | ||||||||||||||
Financial futures |
Notional | i 1,104 | i 3,887 | ( i 4,045 | ) | i 946 | ||||||||||||||
Other foreign currency contracts |
Notional | i 1,186 | i 25 | ( i 1,128 | ) | i 83 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives not designated as hedges |
i 8,964 | i 5,350 | ( i 11,839 | ) | i 2,475 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives |
$ | i 17,269 | $ | i 5,350 | $ | ( i 12,364 | ) | $ | i 10,255 | |||||||||||
|
|
|
|
|
|
|
|
(Number of policies) |
Measurement |
Additions |
Maturities/ terminations |
|||||||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
GMWB embedded derivatives |
Policies | i 23,713 | i — | ( i 1,909 | ) | i 21,804 | ||||||||||||||
Fixed index annuity embedded derivatives |
Policies | i 12,778 | i — | ( i 3,434 | ) | i 9,344 | ||||||||||||||
Indexed universal life embedded derivatives |
Policies | i 842 | i — | ( i 36 | ) | i 806 |
(Amounts in millions) |
Gain (loss) recognized in OCI |
Gain (loss) reclassified into net income from OCI |
Classification of gain (loss) reclassified into net income |
Gain (loss) recognized in net income |
Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets |
$ | ( i 100 | ) | $ | i 217 | Net investment income | $ | i — | Net investment gains (losses) | |||||||
Interest rate swaps hedging assets |
i — | i 1 | Net investment gains (losses) | i — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities |
i 36 | ( i 1 | ) | Interest expense | i — | Net investment gains (losses) | ||||||||||
Foreign currency swaps |
i 7 | i — | Net investment income | i — | Net investment gains (losses) | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
$ | ( i 57 | ) | $ | i 217 | $ | i — | |||||||||
|
|
|
|
|
|
(Amounts in millions) |
Gain (loss) recognized in OCI |
Gain (loss) reclassified into net income from OCI |
Classification of gain (loss) reclassified into net income |
Gain (loss) recognized in net income |
Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets |
$ | i 482 | $ | i 196 | Net investment income | $ | i — | Net investment gains (losses) | ||||||||
Interest rate swaps hedging assets |
i — | i 12 | Net investment gains (losses) | i — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities |
( i 38 | ) | i — | Interest expense | i — | Net investment gains (losses) | ||||||||||
Foreign currency swaps |
( i 5 | ) | i — | Net investment income | i — | Net investment gains (losses) | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
$ | i 439 | $ | i 208 | $ | i — | ||||||||||
|
|
|
|
|
|
(Amounts in millions) |
Gain (loss) recognized in OCI |
Gain (loss) reclassified into net income from OCI |
Classification of gain (loss) reclassified into net income |
Gain (loss) recognized in net income |
Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets |
$ | i 456 | $ | i 164 | Net investment income | $ | — | Net investment gains (losses) | ||||||||
Interest rate swaps hedging assets |
i — | i 6 | Net investment gains (losses) | i — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities |
|
( i 36 |
) |
|
i — |
|
Interest expense | |
i — |
|
Net investment gains (losses) | |||||
Foreign currency swaps |
( i 2 | ) | i — | Net investment income | i — | Net investment gains (losses) | ||||||||||
Foreign currency swaps |
i — | i — | Net investment gains (losses) | i 2 | Net investment gains (losses) | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
$ | i 418 | $ | i 170 | $ | i 2 | ||||||||||
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Derivatives qualifying as effective accounting hedges as of January 1 |
$ | i 2,211 | $ | i 2,002 | $ | i 1,781 | ||||||
Current period increases (decreases) in fair value, net of deferred taxes of $ i 12, $( i 95)
and $( i 87) |
( i 45 | ) | i 344 | i 331 | ||||||||
Reclassification to net (income), net of deferred taxes of $ i 76, $ i 73
and $ i 60 |
( i 141 | ) | ( i 135 | ) | ( i 110 | ) | ||||||
|
|
|
|
|
|
|||||||
Derivatives qualifying as effective accounting hedges as of December 31 |
$ | i 2,025 | $ | i 2,211 | $ | i 2,002 | ||||||
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
Classification of gain (loss) recognized in net income | ||||||||||
Interest rate swaps |
$ | i 2 | $ | ( i 11 | ) | $ | ( i 3 | ) | Net investment gains (losses) | |||||
Equity index options |
i 18 | i 4 | i 43 | Net investment gains (losses) | ||||||||||
Financial futures |
( i 123 | ) | i 2 | ( i 64 | ) | Net investment gains (losses) | ||||||||
Other foreign currency contracts |
i — | i 6 | ( i 6 | ) | Net investment gains (losses) | |||||||||
GMWB embedded derivatives |
i 124 | ( i 28 | ) | i 38 | Net investment gains (losses) | |||||||||
Fixed index annuity embedded derivatives |
( i 32 | ) | ( i 51 | ) | ( i 90 | ) | Net investment gains (losses) | |||||||
Indexed universal life embedded derivatives |
i 24 | i 17 | i 4 | Net investment gains (losses) | ||||||||||
|
|
|
|
|
|
|||||||||
Total derivatives not designated as hedges |
$ | i 13 | $ | ( i 61 | ) | $ | ( i 78 | ) | ||||||
|
|
|
|
|
|
2021 |
2020 |
|||||||||||||||||||||||
(Amounts in millions) |
Derivative assets (1) |
Derivative liabilities (1) |
Net derivatives |
Derivative assets (1) |
Derivative liabilities (1) |
Net derivatives |
||||||||||||||||||
Amounts presented in the balance sheet: |
||||||||||||||||||||||||
Gross amounts recognized |
$ | i 414 | $ | i 26 | $ | i 388 | $ | i 574 | $ | i 26 | $ | i 548 | ||||||||||||
Gross amounts offset in the balance sheet |
i — | i — | i — | i — | i — | i — | ||||||||||||||||||
Net amounts presented in the balance sheet |
i 414 | i 26 | i 388 | i 574 | i 26 | i 548 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross amounts not offset in the balance sheet: |
||||||||||||||||||||||||
Financial instruments (2) |
( i 20 | ) | ( i 20 | ) | i — | ( i 20 | ) | ( i 20 | ) | i — | ||||||||||||||
Collateral received |
( i 308 | ) | i — | ( i 308 | ) | ( i 401 | ) | i — | ( i 401 | ) | ||||||||||||||
Collateral pledged |
i — | ( i 536 | ) | i 536 | i — | ( i 505 | ) | i 505 | ||||||||||||||||
Over collateralization |
i 2 | i 530 | ( i 528 | ) | i 2 | i 499 | ( i 497 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net amount |
$ | i 88 | $ | i — | $ | i 88 | $ | i 155 | $ | i — | $ | i 155 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Does not include amounts related to embedded derivatives as of December 31, 2021 and 2020. |
(2) |
Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Unamortized balance as of January 1 |
$ | i 2,809 | $ | i 3,243 | $ | i 3,591 | ||||||
Costs deferred |
i 8 | i 3 | i 17 | |||||||||
Amortization, net of interest accretion |
( i 379 | ) | ( i 437 | ) | ( i 365 | ) | ||||||
|
|
|
|
|
|
|||||||
Unamortized balance as of December 31 |
i 2,438 | i 2,809 | i 3,243 | |||||||||
Accumulated effect of net unrealized investment (gains) losses |
( i 1,292 | ) | ( i 1,322 | ) | ( i 1,444 | ) | ||||||
|
|
|
|
|
|
|||||||
Balance as of December 31 |
$ | i 1,146 | $ | i 1,487 | $ | i 1,799 | ||||||
|
|
|
|
|
|
2021 |
2020 |
|||||||||||||||
(Amounts in millions) |
Gross carrying amount |
Accumulated amortization |
Gross carrying amount |
Accumulated amortization |
||||||||||||
PVFP |
$ | i 2,065 | $ | ( i 1,994 | ) | $ | i 2,065 | $ | ( i 1,992 | ) | ||||||
Capitalized software |
i 465 | ( i 403 | ) | i 457 | ( i 385 | ) | ||||||||||
Deferred sales inducements to contractholders |
i 295 | ( i 288 | ) | i 284 | ( i 274 | ) | ||||||||||
Other |
i 159 | ( i 156 | ) | i 157 | ( i 155 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | i 2,984 | $ | ( i 2,841 | ) | $ | i 2,963 | $ | ( i 2,806 | ) | ||||||
|
|
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Unamortized balance as of January 1 |
$ | i 154 | $ | i 154 | $ | i 170 | ||||||
Interest accreted at i 5.23%, i 5.19%
and i 5.56% |
i 8 | i 8 | i 9 | |||||||||
Amortization |
( i 10 | ) | ( i 8 | ) | ( i 25 | ) | ||||||
|
|
|
|
|
|
|||||||
Unamortized balance as of December 31 |
i 152 | i 154 | i 154 | |||||||||
Accumulated effect of net unrealized investment (gains) losses |
( i 81 | ) | ( i 81 | ) | ( i 80 | ) | ||||||
|
|
|
|
|
|
|||||||
Balance as of December 31 |
$ | i 71 | $ | i 73 | $ | i 74 | ||||||
|
|
|
|
|
|
2022 |
i 4.2 | % | ||
2023 |
i 4.2 | % | ||
2024 |
i 4.2 | % | ||
2025 |
i 4.0 | % | ||
2026 |
i 5.0 | % |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Direct life insurance in-force |
$ | i 471,147 | $ | i 509,670 | $ | i 555,252 | ||||||
Amounts assumed from other companies |
i 573 | i 624 | i 673 | |||||||||
Amounts ceded to other companies (1) |
( i 427,464 | ) | ( i 458,999 | ) | ( i 500,965 | ) | ||||||
|
|
|
|
|
|
|||||||
Net life insurance in-force |
$ | i 44,256 | $ | i 51,295 | $ | i 54,960 | ||||||
|
|
|
|
|
|
|||||||
Percentage of amount assumed to net |
i 1 | % | i 1 | % | i 1 | % | ||||||
|
|
|
|
|
|
(1) |
Includes amounts accounted for under the deposit method. |
Written |
Earned |
|||||||||||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
||||||||||||||||||
Direct: |
||||||||||||||||||||||||
Life insurance |
$ | i 774 | $ | i 795 | $ | i 845 | $ | i 775 | $ | i 795 | $ | i 845 | ||||||||||||
Accident and health insurance (1) |
i 2,797 | i 2,836 | i 2,792 | i 2,834 | i 2,860 | i 2,821 | ||||||||||||||||||
Mortgage insurance |
i 990 | i 947 | i 844 | i 1,050 | i 1,023 | i 882 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total direct |
i 4,561 | i 4,578 | i 4,481 | i 4,659 | i 4,678 | i 4,548 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Assumed: |
||||||||||||||||||||||||
Life insurance |
i 2 | i 1 | i 1 | i 2 | i 2 | i 1 | ||||||||||||||||||
Accident and health insurance (1) |
i 300 | i 313 | i 321 | i 304 | i 322 | i 326 | ||||||||||||||||||
Mortgage insurance |
i 3 | i 3 | i 4 | i 3 | i 4 | i 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assumed |
i 305 | i 317 | i 326 | i 309 | i 328 | i 331 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ceded: |
||||||||||||||||||||||||
Life insurance (2) |
( i 913 | ) | ( i 558 | ) | ( i 568 | ) | ( i 913 | ) | ( i 559 | ) | ( i 568 | ) | ||||||||||||
Accident and health insurance (1) |
( i 541 | ) | ( i 550 | ) | ( i 557 | ) | ( i 548 | ) | ( i 562 | ) | ( i 564 | ) | ||||||||||||
Mortgage insurance |
( i 72 | ) | ( i 49 | ) | ( i 22 | ) | ( i 72 | ) | ( i 49 | ) | ( i 22 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total ceded |
( i 1,526 | ) | ( i 1,157 | ) | ( i 1,147 | ) | ( i 1,533 | ) | ( i 1,170 | ) | ( i 1,154 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net premiums |
$ | i 3,340 | $ | i 3,738 | $ | i 3,660 | $ | i 3,435 | $ | i 3,836 | $ | i 3,725 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Percentage of amount assumed to net |
i 9% | i 9% | i 9% | |||||||||||||||||||||
|
|
|
|
|
|
(1) |
Accident and health insurance is comprised almost entirely of our long-term care insurance products. |
(2) |
Effective December 1, 2021 and included in the year ended December 31, 2021, we entered into a reinsurance agreement with SCOR Global Life USA Reinsurance Company, under which we ceded premiums of $ i 360 million associated with certain term life insurance policies in connection with a life block transaction. |
(Amounts in millions) |
2021 |
2020 |
||||||
Allowance for credit losses: |
||||||||
Beginning balance |
$ | i 45 | $ | i — | ||||
Cumulative effect of change in accounting |
i — | i 40 | ||||||
Provision |
i 10 | i 5 | ||||||
Write-offs |
i — | i — | ||||||
Recoveries |
i — | i — | ||||||
|
|
|
|
|||||
Ending balance |
$ | i 55 | $ | i 45 | ||||
|
|
|
|
2021 |
||||||||||||
(Amounts in millions) |
Collateralized |
Non-collateralized |
Total |
|||||||||
Credit rating: |
||||||||||||
A++ |
$ | i — | $ | i 543 | $ | i 543 | ||||||
A+ |
i 1,581 | i 1,510 | i 3,091 | |||||||||
A |
i 18 | i 41 | i 59 | |||||||||
Not rated |
i 13,099 | i 76 | i 13,175 | |||||||||
|
|
|
|
|
|
|||||||
Total reinsurance recoverable |
$ | i 14,698 | $ | i 2,170 | $ | i 16,868 | ||||||
|
|
|
|
|
|
2020 |
||||||||||||
(Amounts in millions) |
Collateralized |
Non-collateralized |
Total |
|||||||||
Credit rating: |
||||||||||||
A++ |
$ | i — | $ | i 519 | $ | i 519 | ||||||
A+ |
i 1,437 | i 1,343 | i 2,780 | |||||||||
A |
i 19 | i 45 | i 64 | |||||||||
B+ |
i — | i 1 | i 1 | |||||||||
Not rated |
i 13,419 | i 81 | i 13,500 | |||||||||
|
|
|
|
|
|
|||||||
Total reinsurance recoverable |
$ | i 14,875 | $ | i 1,989 | $ | i 16,864 | ||||||
|
|
|
|
|
|
(Amounts in millions) |
Mortality/ morbidity assumption |
Interest rate assumption |
2021 |
2020 |
||||||||||||
Long-term care insurance contracts |
(a |
) |
i 3.75% - i 7.50% |
$ | i 28,232 | $ | i 28,770 | |||||||||
Structured settlements with life contingencies |
(b |
) |
i 1.00% - i 8.00% | i 8,075 | i 8,240 | |||||||||||
Annuity contracts with life contingencies |
(b |
) |
i 1.00% - i 8.00% | i 2,934 | i 3,252 | |||||||||||
Traditional life insurance contracts |
(c |
) |
i 3.00% - i 7.50% | i 1,956 | i 2,101 | |||||||||||
Supplementary contracts with life contingencies |
(b |
) |
i 1.00% - i 8.00% | i 331 | i 332 | |||||||||||
|
|
|
|
|||||||||||||
Total future policy benefits |
$ | i 41,528 | $ | i 42,695 | ||||||||||||
|
|
|
|
(a) |
The 1983 Individual Annuitant Mortality Table or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality Table or the 1994 Group Annuitant Mortality Table and company experience. |
(b) |
Assumptions for limited-payment contracts come from either the U.S. Population Table, the 1983 Group Annuitant Mortality Table, the 1983 Individual Annuitant Mortality Table, the Annuity 2000 Mortality Table or the 2012 Individual Annuity Reserving Table. |
(c) |
Principally modifications based on company experience of the Society of Actuaries 1965-70 or 1975-80 Select and the Ultimate Tables, the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Tables, the 1980 Commissioner’s Extended Term table and (IA) Standard Table 1996 (modified). |
(Amounts in millions) |
2021 |
2020 |
||||||
Annuity contracts |
$ | i 6,816 | $ | i 8,273 | ||||
Funding agreements |
i 250 | i 300 | ||||||
Structured settlements without life contingencies |
i 1,027 | i 1,114 | ||||||
Supplementary contracts without life contingencies |
i 550 | i 576 | ||||||
Other |
i 14 | i 13 | ||||||
|
|
|
|
|||||
Total investment contracts |
i 8,657 | i 10,276 | ||||||
Universal and term universal life insurance contracts |
i 10,697 | i 11,227 | ||||||
|
|
|
|
|||||
Total policyholder account balances |
$ | i 19,354 | $ | i 21,503 | ||||
|
|
|
|
(Dollar amounts in millions) |
2021 |
2020 |
||||||
Account values with death benefit guarantees (net of reinsurance): |
||||||||
Standard death benefits (return of net deposits) account value |
$ | i 2,547 | $ | i 2,611 | ||||
Net amount at risk |
$ | i 1 | $ | i 2 | ||||
Average attained age of contractholders |
i 76 | i 76 | ||||||
Enhanced death benefits (ratchet, rollup) account value |
$ | i 1,326 | $ | i 1,350 | ||||
Net amount at risk |
$ | i 94 | $ | i 105 | ||||
Average attained age of contractholders |
i 76 | i 76 | ||||||
Account values with living benefit guarantees: |
||||||||
GMWBs |
$ | i 1,893 | $ | i 1,999 | ||||
Guaranteed annuitization benefits |
$ | i 1,002 | $ | i 998 |
(Amounts in millions) |
2021 |
2020 |
||||||
Balanced funds |
$ | i 2,397 | $ | i 2,343 | ||||
Equity funds |
i 913 | i 1,016 | ||||||
Bond funds |
i 297 | i 304 | ||||||
Money market funds |
i 189 | i 216 | ||||||
|
|
|
|
|||||
Total |
$ | i 3,796 | $ | i 3,879 | ||||
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
||||||
U.S. Life Insurance segment: |
||||||||
Long-term care insurance |
$ | i 10,861 | $ | i 10,518 | ||||
Life insurance |
i 308 | i 378 | ||||||
Fixed annuities |
i 14 | i 12 | ||||||
Runoff segment |
i 8 | i 12 | ||||||
|
|
|
|
|||||
Total |
i 11,191 | i 10,920 | ||||||
|
|
|
|
|||||
Enact segment |
i 641 | i 555 | ||||||
Other mortgage insurance businesses |
i 9 | i 11 | ||||||
|
|
|
|
|||||
Total |
i 650 | i 566 | ||||||
|
|
|
|
|||||
Total liability for policy and contract claims |
$ | i 11,841 | $ | i 11,486 | ||||
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Beginning balance as of January 1 |
$ | i 10,518 | $ | i 10,239 | $ | i 9,516 | ||||||
Less reinsurance recoverables |
( i 2,260 | ) | ( i 2,283 | ) | ( i 2,262 | ) | ||||||
|
|
|
|
|
|
|||||||
Net balance as of January 1 |
i 8,258 | i 7,956 | i 7,254 | |||||||||
|
|
|
|
|
|
|||||||
Incurred related to insured events of: |
||||||||||||
Current year |
i 2,761 | i 2,595 | i 2,717 | |||||||||
Prior years |
( i 610 | ) | ( i 398 | ) | ( i 219 | ) | ||||||
|
|
|
|
|
|
|||||||
Total incurred |
i 2,151 | i 2,197 | i 2,498 | |||||||||
|
|
|
|
|
|
|||||||
Paid related to insured events of: |
||||||||||||
Current year |
( i 203 | ) | ( i 189 | ) | ( i 205 | ) | ||||||
Prior years |
( i 2,011 | ) | ( i 2,118 | ) | ( i 1,975 | ) | ||||||
|
|
|
|
|
|
|||||||
Total paid |
( i 2,214 | ) | ( i 2,307 | ) | ( i 2,180 | ) | ||||||
|
|
|
|
|
|
|||||||
Interest on liability for policy and contract claims |
i 406 | i 412 | i 384 | |||||||||
|
|
|
|
|
|
|||||||
Net balance as of December 31 |
i 8,601 | i 8,258 | i 7,956 | |||||||||
Add reinsurance recoverables |
i 2,260 | i 2,260 | i 2,283 | |||||||||
|
|
|
|
|
|
|||||||
Ending balance as of December 31 |
$ | i 10,861 | $ | i 10,518 | $ | i 10,239 | ||||||
|
|
|
|
|
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance |
Number of reported delinquencies (2) |
|||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
For the years ended December 31, |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident year (1) |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
$ | i 718 | $ | i 675 | $ | i 671 | $ | i 673 | $ | i 671 | $ | i 668 | $ | i 667 | $ | i 666 | $ | i 666 | $ | i 667 | $ | i — | i 31,126 | |||||||||||||||||||||||||
2013 |
i — | i 475 | i 407 | i 392 | i 387 | i 384 | i 382 | i 381 | i 381 | i 381 | i — | i 22,502 | ||||||||||||||||||||||||||||||||||||
2014 |
i — | i — | i 328 | i 288 | i 269 | i 261 | i 259 | i 258 | i 259 | i 259 | i — | i 17,809 | ||||||||||||||||||||||||||||||||||||
2015 |
i — | i — | i — | i 235 | i 208 | i 187 | i 181 | i 180 | i 180 | i 179 | i — | i 15,400 | ||||||||||||||||||||||||||||||||||||
2016 |
i — | i — | i — | i — | i 198 | i 160 | i 138 | i 136 | i 137 | i 136 | i — | i 13,970 | ||||||||||||||||||||||||||||||||||||
2017 |
i — | i — | i — | i — | i — | i 171 | i 121 | i 102 | i 105 | i 104 | i — | i 15,097 | ||||||||||||||||||||||||||||||||||||
2018 |
i — | i — | i — | i — | i — | i — | i 117 | i 84 | i 84 | i 78 | i 1 | i 11,269 | ||||||||||||||||||||||||||||||||||||
2019 |
i — | i — | i — | i — | i — | i — | i — | i 106 | i 111 | i 98 | i 1 | i 11,883 | ||||||||||||||||||||||||||||||||||||
2020 |
i — | i — | i — | i — | i — | i — | i — | i — | i 365 | i 362 | i 1 | i 38,863 | ||||||||||||||||||||||||||||||||||||
2021 |
i — | i — | i — | i — | i — | i — | i — | i — | i — | i 141 | i 15 | i 12,585 | ||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Total incurred |
$ | i 2,405 | ||||||||||||||||||||||||||||||||||||||||||||||
|
|
(1) |
Represents the year in which first monthly mortgage payments have been missed by the borrower. |
(2) |
Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. |
(Amounts in millions) |
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance |
|||||||||||||||||||||||||||||||||||||||
Accident year (1) |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||||||||||||
2012 |
$ | i 92 | $ | i 391 | $ | i 532 | $ | i 602 | $ | i 634 | $ | i 650 | $ | i 658 | $ | i 662 | $ | i 663 | $ | i 663 | ||||||||||||||||||||
2013 |
i — | i 44 | i 202 | i 297 | i 340 | i 362 | i 372 | i 375 | i 376 | i 377 | ||||||||||||||||||||||||||||||
2014 |
i — | i — | i 22 | i 127 | i 195 | i 233 | i 247 | i 253 | i 254 | i 255 | ||||||||||||||||||||||||||||||
2015 |
i — | i — | i — | i 12 | i 85 | i 145 | i 167 | i 173 | i 175 | i 176 | ||||||||||||||||||||||||||||||
2016 |
i — | i — | i — | i — | i 10 | i 64 | i 110 | i 124 | i 127 | i 128 | ||||||||||||||||||||||||||||||
2017 |
i — | i — | i — | i — | i — | i 6 | i 46 | i 77 | i 87 | i 90 | ||||||||||||||||||||||||||||||
2018 |
i — | i — | i — | i — | i — | i — | i 3 | i 32 | i 48 | i 55 | ||||||||||||||||||||||||||||||
2019 |
i — | i — | i — | i — | i — | i — | i — | i 2 | i 18 | i 31 | ||||||||||||||||||||||||||||||
2020 |
i — | i — | i — | i — | i — | i — | i — | i — | i 1 | i 8 | ||||||||||||||||||||||||||||||
2021 |
i — | i — | i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total paid |
|
$ | i 1,783 | |||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total incurred |
|
$ | i 2,405 | |||||||||||||||||||||||||||||||||||||
Total paid |
|
i 1,783 | ||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2012 |
|
i 19 | ||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Liability for policy and contract claims |
|
$ | i 641 | |||||||||||||||||||||||||||||||||||||
|
|
(1) |
Represents the year in which first monthly mortgage payments have been missed by the borrower. |
Average annual percentage payout of incurred claims by age |
||||||||||||||||||||||||||||||||||||||||
Years |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||||||||||||
Percentage of payout |
i 6.0 | % | i 33.3 | % | i 25.7 | % | i 11.0 | % | i 4.0 | % | i 1.8 | % | i 0.8 | % | i 0.3 | % | i 0.2 | % | i 0.1 | % |
(Amounts in millions) |
2021 |
2020 |
||||||
Genworth Holdings |
||||||||
i 7.20% Senior Notes, due i 2021 |
$ | i — | $ | i 338 | ||||
i 7.625% Senior Notes, due i 2021 |
i — | i 660 | ||||||
i 4.90% Senior Notes, due i 2023 |
i — | i 400 | ||||||
i 4.80% Senior Notes, due i 2024 |
i 282 | i 400 | ||||||
i 6.50% Senior Notes, due i 2034 |
i 298 | i 297 | ||||||
Floating Rate Junior Subordinated Notes, due i 2066 |
i 598 | i 598 | ||||||
|
|
|
|
|||||
Subtotal |
i 1,178 | i 2,693 | ||||||
Bond consent fees |
( i 12 | ) | ( i 19 | ) | ||||
Deferred borrowing charges |
( i 7 | ) | ( i 9 | ) | ||||
Total Genworth Holdings |
i 1,159 | i 2,665 | ||||||
|
|
|
|
|||||
Enact Holdings |
||||||||
i 6.50% Senior Notes, due i 2025 |
i 750 | i 750 | ||||||
Deferred borrowing charges |
( i 10 | ) | ( i 12 | ) | ||||
|
|
|
|
|||||
Total Enact Holdings |
i 740 | i 738 | ||||||
|
|
|
|
|||||
Total |
$ i 1,899 | $ | i 3,403 | |||||
|
|
|
|
(Amounts in millions) |
||||
2022 |
$ | i — | ||
2023 |
i — | |||
2024 |
i 282 | |||
2025 |
i 750 | |||
2026 and thereafter |
i 900 | |||
|
|
|||
Total |
$ | i 1,932 | ||
|
|
(Amounts in millions) |
Overnight and continuous |
Up to 30 days |
31 - 90 days |
Greater than 90 days |
Total |
|||||||||||||||
Securities lending: |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
Non-U.S. government |
$ | i 1 | $ | i — | $ | i — | $ | i — | $ | i 1 | ||||||||||
U.S. corporate |
i 40 | i — | i — | i — | i 40 | |||||||||||||||
Non-U.S. corporate |
i 19 | i — | i — | i — | i 19 | |||||||||||||||
Subtotal, fixed maturity securities |
i 60 | i — | i — | i — | i 60 | |||||||||||||||
Equity securities |
i 7 | i 7 | ||||||||||||||||||
Total securities lending |
$ | i 67 | $ | i — | $ | i — | $ | i — | $ | i 67 | ||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Domestic |
$ | i 1,184 | $ | i 931 | $ | i 523 | ||||||
Foreign |
( i 3 | ) | ( i 3 | ) | ( i 2 | ) | ||||||
Income from continuing operations before income taxes |
$ | i 1,181 | $ | i 928 | $ | i 521 | ||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Current federal income taxes |
$ | ( i 32 | ) | $ | i — | $ | i 6 | |||||
Deferred federal income taxes |
i 288 | i 226 | i 114 | |||||||||
Total federal income taxes |
i 256 | i 226 | i 120 | |||||||||
Current state income taxes |
i 5 | i 3 | i 2 | |||||||||
Deferred state income taxes |
i 2 | i 2 | i 5 | |||||||||
Total state income taxes |
i 7 | i 5 | i 7 | |||||||||
Current foreign income taxes |
i — | i — | i 12 | |||||||||
Deferred foreign income taxes |
i — | ( i 1 | ) | i — | ||||||||
Total foreign income taxes |
i — | ( i 1 | ) | i 12 | ||||||||
Total provision for income taxes |
$ | i 263 | $ | i 230 | $ | i 139 | ||||||
2021 |
2020 |
2019 |
||||||||||
Statutory U.S. federal income tax rate |
i 21.0 | % | i 21.0 | % | i 21.0 | % | ||||||
Increase (reduction) in rate resulting from: |
||||||||||||
Swaps terminated prior to the TCJA |
i 2.5 | i 3.0 | i 4.5 | |||||||||
Reduction in uncertain tax positions |
( i 1.8 | ) | i — | i — | ||||||||
State income tax, net of federal income tax effect |
i 0.5 | i 0.4 | i 1.1 | |||||||||
Other, net |
i 0.1 | i 0.4 | i 0.1 | |||||||||
Effective rate |
i 22.3 | % | i 24.8 | % | i 26.7 | % | ||||||
(Amounts in millions) |
2021 |
2020 |
||||||
Assets: |
||||||||
Foreign tax credit carryforwards |
$ | i 174 | $ | i 136 | ||||
Net operating loss carryforwards |
i 202 | i 56 | ||||||
Capital loss carryforwards |
i 142 | i — | ||||||
State income taxes |
i 388 | i 386 | ||||||
Insurance reserves |
i 178 | i 620 | ||||||
Accrued commission and general expenses |
i 118 | i 123 | ||||||
Liabilities associated with discontinued operations |
i 122 | i 126 | ||||||
Investments |
i — | i 10 | ||||||
Other |
i 18 | i 23 | ||||||
|
|
|
|
|||||
Gross deferred income tax assets |
i 1,342 | i 1,480 | ||||||
Valuation allowance |
( i 382 | ) | ( i 396 | ) | ||||
|
|
|
|
|||||
Total deferred income tax assets |
i 960 | i 1,084 | ||||||
|
|
|
|
|||||
Liabilities: |
||||||||
Net unrealized gains on investment securities |
i 506 | i 590 | ||||||
Net unrealized gains on derivatives |
i 73 | i 70 | ||||||
DAC |
i 98 | i 181 | ||||||
PVFP and other intangibles |
i 38 | i 42 | ||||||
Insurance reserves transition adjustment |
i 99 | i 123 | ||||||
Investments |
i 10 | i — | ||||||
Other |
i 17 | i 13 | ||||||
|
|
|
|
|||||
Total deferred income tax liabilities |
i 841 | i 1,019 | ||||||
|
|
|
|
|||||
Net deferred income tax asset |
$ | i 119 | $ | i 65 | ||||
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Balance as of January 1 |
$ | i 62 | $ | i 64 | $ | i 79 | ||||||
Tax positions related to the current period: |
||||||||||||
Gross additions |
i — | i — | i — | |||||||||
Gross reductions |
( i 3 | ) | ( i 3 | ) | ( i 15 | ) | ||||||
Tax positions related to the prior years: |
||||||||||||
Gross additions |
i — | i 1 | i — | |||||||||
Gross reductions |
( i 19 | ) | i — | i — | ||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31 |
$ | i 40 | $ | i 62 | $ | i 64 | ||||||
|
|
|
|
|
|
Valuation assumptions: |
||||
Valuation-date stock price |
$ | i 3.31 | ||
Volatility |
i 65.0 | % | ||
Dividend yield |
i — | % | ||
Risk-free rate |
i 0.3 | % | ||
Valuation maximum |
i 800% of grant-date stock price |
(Number of awards, in millions) |
Time-based cash awards |
Performance-based cash awards |
||||||
Balance as of January 1, 2020 |
i 26 | i 13 | ||||||
Granted |
i 17 | i — | ||||||
Performance adjustment |
i — | i 1 | ||||||
Vested |
( i 11 | ) | ( i 5 | ) | ||||
Forfeited |
( i 2 | ) | ( i 2 | ) | ||||
|
|
|
|
|||||
Balance as of January 1, 2021 |
i 30 | i 7 | ||||||
Granted |
i 15 | i — | ||||||
Performance adjustment |
i — | i 6 | ||||||
Vested |
( i 15 | ) | ( i 13 | ) | ||||
Forfeited |
( i 3 | ) | i — | |||||
|
|
|
|
|||||
Balance as of December 31, 2021 |
i 27 | i — | ||||||
|
|
|
|
(Shares in thousands) |
Shares subject to option |
Weighted-average exercise price |
||||||
Balance as of January 1, 2020 |
i 801 | $ | i 14.17 | |||||
Granted |
i — | $ | i — | |||||
Exercised |
i — | $ | i — | |||||
Expired and forfeited |
( i 800 | ) | $ | i 14.17 | ||||
|
|
|||||||
Balance as of January 1, 2021 |
i 1 | $ | i 12.75 | |||||
Granted |
i — | $ | i — | |||||
Exercised |
i — | $ | i — | |||||
Expired and forfeited |
( i 1 | ) | $ | i 12.75 | ||||
|
|
|||||||
Balance as of December 31, 2021 |
i — | $ | i — | |||||
|
|
|||||||
Exercisable as of December 31, 2021 |
i — | $ | i — | |||||
|
|
RSUs |
PSUs |
DSUs |
SARs |
|||||||||||||||||||||||||||||
(Awards in thousands) |
Number of awards |
Weighted- average grant date fair value |
Number of awards |
Weighted- average fair value |
Number of awards |
Weighted- average fair value |
Number of awards |
Weighted- average grant date fair value |
||||||||||||||||||||||||
Balance as of January 1, 2020 |
i 2,675 | $ | i 3.51 | i 5,142 | $ | i 4.28 | i 1,515 | $ | i 4.37 | i 8,151 | $ | i 3.41 | ||||||||||||||||||||
Granted |
i 1,683 | $ | i 3.53 | i 2,789 | $ | i 3.03 | i 237 | $ | i 2.00 | i — | $ | i — | ||||||||||||||||||||
Performance adjustment (1) |
i — | $ | i — | i 443 | $ | i 4.01 | i — | $ | i — | i — | $ | i — | ||||||||||||||||||||
Exercised |
( i 1,336 | ) | $ | i 3.62 | ( i 1,994 | ) | $ | i 4.01 | ( i 215 | ) | $ | i 4.76 | i — | $ | i — | |||||||||||||||||
Terminated |
( i 488 | ) | $ | i 3.47 | ( i 646 | ) | $ | i 3.86 | i — | $ | i — | ( i 1,121 | ) | $ | i 3.99 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance as of January 1, 2021 |
i 2,534 | $ | i 3.48 | i 5,734 | $ | i 3.79 | i 1,537 | $ | i 3.95 | i 7,030 | $ | i 3.32 | ||||||||||||||||||||
Granted |
i 1,391 | $ | i 3.31 | i 2,510 | $ | i 3.45 | i 315 | $ | i 2.52 | i — | $ | i — | ||||||||||||||||||||
Performance adjustment (1) |
i — | $ | i — | i 626 | $ | i 3.58 | i — | $ | i — | i — | $ | i — | ||||||||||||||||||||
Exercised |
( i 1,474 | ) | $ | i 3.47 | ( i 1,365 | ) | $ | i 3.58 | ( i 15 | ) | $ | i 7.46 | i — | $ | i — | |||||||||||||||||
Terminated |
( i 134 | ) | $ | i 3.53 | i — | $ | i — | i — | $ | i — | ( i 835 | ) | $ | i 3.04 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance as of December 31, 2021 |
i 2,317 | $ | i 3.38 | i 7,505 | $ | i 3.70 | i 1,837 | $ | i 3.42 | i 6,195 | $ | i 3.36 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(1) |
The performance adjustment relates to additional awards expected to be earned through the achievement of certain performance metrics. |
RSUs |
DSUs |
|||||||||||||||
(Awards in thousands) |
Number of awards |
Weighted- average grant date fair value |
Number of awards |
Weighted- average fair value |
||||||||||||
Balance as of January 1, 2021 |
i — | $ | i — | i — | $ | i — | ||||||||||
Granted |
i 628 | $ | i 19.02 | i 17 | $ | i 20.87 | ||||||||||
Dividend equivalents |
i 36 | $ | i 21.25 | i — | $ | i — | ||||||||||
Vested |
i — | $ | i — | i — | $ | i — | ||||||||||
Terminated |
( i 10 | ) | $ | i 19.00 | i — | $ | i — | |||||||||
|
|
|
|
|||||||||||||
Balance as of December 31, 2021 |
i 654 | $ | i 19.02 | i 17 | $ | i 20.87 | ||||||||||
|
|
|
|
• | Third-party pricing services: |
(Amounts in millions) |
Fair value |
Primary methodologies |
Significant inputs | |||||
U.S. government, agencies and government-sponsored enterprises |
$ |
i 4,552 | i Price quotes from trading desk, broker feeds | i Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | ||||
State and political subdivisions |
$ |
i 3,368 | i Multi-dimensional attribute-based modeling systems, third-party pricing vendors | i Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | ||||
Non-U.S. government |
$ |
i 833 | i Matrix pricing, spread priced to benchmark curves, price quotes from market makers | i Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||
U.S. corporate |
$ |
i 30,774 | i Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models | i Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports | ||||
Non-U.S. corporate |
$ |
i 8,322 | i Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | i Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||
Residential mortgage-backed |
$ |
i 1,413 | i OAS-based models, single factor binomial models, internally priced | i Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | ||||
Commercial mortgage-backed |
$ |
i 2,568 | i Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | i Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swap curves, TRACE reports | ||||
Other asset-backed |
$ |
i 2,022 | i Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | i Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
• | Internal models: non-U.S. corporate securities are valued using internal models. The fair value of these fixed maturity securities was $ i 1,769 million and $ i 1,051 million,
respectively, as of December 31, 2021. Internally modeled securities are primarily private fixed maturity securities where we use market observable inputs such as an interest rate yield curve, published credit spreads for similar securities based on the external ratings of the instrument and related industry sector of the issuer. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps and liquidity premiums are established using inputs from market participants. |
• | Broker quotes: non-U.S. government, U.S. corporate, non-U.S. corporate, residential mortgage-backed, commercial mortgage-backed and other asset-backed securities are valued using broker quotes. Broker quotes are obtained from third-party providers that have current market knowledge to provide a reasonable price for securities not routinely priced by pricing services. Brokers utilized for valuation of assets are reviewed annually. The fair value of our Level 3 fixed maturity securities priced by broker quotes was $ i 312 million
as of December 31, 2021. |
• | Internal models: non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market
participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $ i 3,496 million
as of December 31, 2021. |
2021 |
||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
NAV (1) |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | i 4,552 | $ | i — | $ | i 4,552 | $ | i — | $ | i — | ||||||||||
State and political subdivisions |
i 3,450 | i — | i 3,368 | i 82 | i — | |||||||||||||||
Non-U.S. government |
i 835 | i — | i 833 | i 2 | i — | |||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
i 5,104 | i — | i 4,154 | i 950 | i — | |||||||||||||||
Energy |
i 2,934 | i — | i 2,858 | i 76 | i — | |||||||||||||||
Finance and insurance |
i 8,991 | i — | i 8,306 | i 685 | i — | |||||||||||||||
Consumer—non-cyclical |
i 6,159 | i — | i 6,055 | i 104 | i — | |||||||||||||||
Technology and communications |
i 3,808 | i — | i 3,779 | i 29 | i — | |||||||||||||||
Industrial |
i 1,494 | i — | i 1,457 | i 37 | i — | |||||||||||||||
Capital goods |
i 2,745 | i — | i 2,700 | i 45 | i — | |||||||||||||||
Consumer—cyclical |
i 1,899 | i — | i 1,762 | i 137 | i — | |||||||||||||||
Transportation |
i 1,371 | i — | i 1,307 | i 64 | i — | |||||||||||||||
Other |
i 419 | i — | i 165 | i 254 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
i 34,924 | i — | i 32,543 | i 2,381 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
i 928 | i — | i 583 | i 345 | i — | |||||||||||||||
Energy |
i 1,383 | i — | i 1,238 | i 145 | i — | |||||||||||||||
Finance and insurance |
i 2,432 | i — | i 2,272 | i 160 | i — | |||||||||||||||
Consumer—non-cyclical |
i 743 | i — | i 680 | i 63 | i — | |||||||||||||||
Technology and communications |
i 1,250 | i — | i 1,222 | i 28 | i — | |||||||||||||||
Industrial |
i 1,047 | i — | i 954 | i 93 | i — | |||||||||||||||
Capital goods |
i 705 | i — | i 532 | i 173 | i — | |||||||||||||||
Consumer—cyclical |
i 341 | i — | i 265 | i 76 | i — | |||||||||||||||
Transportation |
i 489 | i — | i 436 | i 53 | i — | |||||||||||||||
Other |
i 1,217 | i — | i 1,191 | i 26 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
i 10,535 | i — | i 9,373 | i 1,162 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
i 1,440 | i — | i 1,413 | i 27 | i — | |||||||||||||||
Commercial mortgage-backed |
i 2,584 | i — | i 2,568 | i 16 | i — | |||||||||||||||
Other asset-backed |
i 2,160 | i — | i 2,022 | i 138 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed maturity securities |
i 60,480 | i — | i 56,672 | i 3,808 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity securities |
i 198 | i 101 | i 60 | i 37 | i — | |||||||||||||||
Limited partnerships |
i 1,462 | i — | i — | i — | i 1,462 | |||||||||||||||
Other invested assets: |
||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||
Interest rate swaps |
i 364 | i — | i 364 | i — | i — | |||||||||||||||
Foreign currency swaps |
i 6 | i — | i 6 | i — | i — | |||||||||||||||
Equity index options |
i 42 | i — | i — | i 42 | i — | |||||||||||||||
Other foreign currency contracts |
i 2 | i — | i 2 | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
i 414 | i — | i 372 | i 42 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Short-term investments |
i 26 | i — | i 26 | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other invested assets |
i 440 | i — | i 398 | i 42 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reinsurance recoverable (2) |
i 19 | i — | i — | i 19 | i — | |||||||||||||||
Separate account assets |
i 6,066 | i 6,066 | i — | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | i 68,665 | $ | i 6,167 | $ | i 57,130 | $ | i 3,906 | $ | i 1,462 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
(2) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
2020 |
||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
NAV (1) |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | i 4,805 | $ | i — | $ | i 4,805 | $ | i — | $ | i — | ||||||||||
State and political subdivisions |
i 3,165 | i — | i 3,099 | i 66 | i — | |||||||||||||||
Non-U.S. government |
i 854 | i — | i 854 | i — | i — | |||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
i 5,194 | i — | i 4,352 | i 842 | i — | |||||||||||||||
Energy |
i 2,883 | i — | i 2,755 | i 128 | i — | |||||||||||||||
Finance and insurance |
i 9,102 | i — | i 8,495 | i 607 | i — | |||||||||||||||
Consumer—non-cyclical |
i 6,437 | i — | i 6,328 | i 109 | i — | |||||||||||||||
Technology and communications |
i 3,761 | i — | i 3,714 | i 47 | i — | |||||||||||||||
Industrial |
i 1,602 | i — | i 1,562 | i 40 | i — | |||||||||||||||
Capital goods |
i 2,991 | i — | i 2,931 | i 60 | i — | |||||||||||||||
Consumer—cyclical |
i 1,947 | i — | i 1,797 | i 150 | i — | |||||||||||||||
Transportation |
i 1,500 | i — | i 1,430 | i 70 | i — | |||||||||||||||
Other |
i 440 | i — | i 221 | i 219 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
i 35,857 | i — | i 33,585 | i 2,272 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
i 922 | i — | i 570 | i 352 | i — | |||||||||||||||
Energy |
i 1,380 | i — | i 1,135 | i 245 | i — | |||||||||||||||
Finance and insurance |
i 2,476 | i — | i 2,171 | i 305 | i — | |||||||||||||||
Consumer—non-cyclical |
i 773 | i — | i 706 | i 67 | i — | |||||||||||||||
Technology and communications |
i 1,291 | i — | i 1,263 | i 28 | i — | |||||||||||||||
Industrial |
i 1,128 | i — | i 1,033 | i 95 | i — | |||||||||||||||
Capital goods |
i 576 | i — | i 398 | i 178 | i — | |||||||||||||||
Consumer—cyclical |
i 371 | i — | i 225 | i 146 | i — | |||||||||||||||
Transportation |
i 570 | i — | i 461 | i 109 | i — | |||||||||||||||
Other |
i 1,324 | i — | i 1,241 | i 83 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
i 10,811 | i — | i 9,203 | i 1,608 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
i 1,909 | i — | i 1,895 | i 14 | i — | |||||||||||||||
Commercial mortgage-backed |
i 2,974 | i — | i 2,954 | i 20 | i — | |||||||||||||||
Other asset-backed |
i 3,120 | i — | i 3,011 | i 109 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed maturity securities |
i 63,495 | i — | i 59,406 | i 4,089 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity securities |
i 386 | i 276 | i 59 | i 51 | i — | |||||||||||||||
Limited partnerships |
i 835 | i — | i — | i — | i 835 | |||||||||||||||
Other invested assets: |
||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||
Interest rate swaps |
i 468 | i — | i 468 | i — | i — | |||||||||||||||
Foreign currency swaps |
i 1 | i — | i 1 | i — | i — | |||||||||||||||
Equity index options |
i 63 | i — | i — | i 63 | i — | |||||||||||||||
Other foreign currency contracts |
i 42 | i — | i 42 | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
i 574 | i — | i 511 | i 63 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Securities lending collateral |
i 67 | i — | i 67 | i — | i — | |||||||||||||||
Short-term investments |
i 45 | i 25 | i 20 | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other invested assets |
i 686 | i 25 | i 598 | i 63 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reinsurance recoverable (2) |
i 26 | i — | i — | i 26 | i — | |||||||||||||||
Separate account assets |
i 6,081 | i 6,081 | i — | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | i 71,509 | $ | i 6,382 | $ | i 60,063 | $ | i 4,229 | $ | i 835 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
(2) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Beginning balance as of January 1, 2021 |
Total realized and unrealized gains (losses) |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 (1) |
Transfer out of Level 3 (1) |
Ending balance as of December 31, 2021 |
Total gains (losses) attributable to assets still held |
|||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net income |
Included in OCI |
Included in net income |
Included in OCI |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | i 66 | $ | i 3 | $ | i 13 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 82 | $ | i 3 | $ | i 13 | ||||||||||||||||||||||||
Non-U.S. government |
i — | i — | i — | i 2 | i — | i — | i — | i — | i — | i 2 | i — | i — | ||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 842 | i — | i 3 | i 118 | i — | i — | ( i 18 | ) | i 18 | ( i 13 | ) | i 950 | i — | i 4 | ||||||||||||||||||||||||||||||||||
Energy |
i 128 | i — | i 4 | i 50 | i — | i — | ( i 10 | ) | i 8 | ( i 104 | ) | i 76 | i — | i 1 | ||||||||||||||||||||||||||||||||||
Finance and insurance |
i 607 | i — | ( i 18 | ) | i 233 | i — | i — | ( i 46 | ) | i 17 | ( i 108 | ) | i 685 | i — | ( i 16 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 109 | i — | ( i 2 | ) | i — | i — | i — | ( i 3 | ) | i 3 | ( i 3 | ) | i 104 | i — | ( i 2 | ) | ||||||||||||||||||||||||||||||||
Technology and communications |
i 47 | i — | ( i 1 | ) | i 12 | i — | i — | i — | i 4 | ( i 33 | ) | i 29 | i — | ( i 1 | ) | |||||||||||||||||||||||||||||||||
Industrial |
i 40 | i — | i — | i 17 | i — | i — | ( i 20 | ) | i — | i — | i 37 | i — | ( i 1 | ) | ||||||||||||||||||||||||||||||||||
Capital goods |
i 60 | i — | ( i 1 | ) | i — | i — | i — | ( i 14 | ) | i — | i — | i 45 | i — | ( i 2 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical |
i 150 | i — | i — | i — | i — | i — | ( i 5 | ) | i — | ( i 8 | ) | i 137 | i — | i — | ||||||||||||||||||||||||||||||||||
Transportation |
i 70 | i — | ( i 1 | ) | i — | i — | i — | ( i 5 | ) | i — | i — | i 64 | i — | ( i 1 | ) | |||||||||||||||||||||||||||||||||
Other |
i 219 | i — | ( i 1 | ) | i — | i — | i — | ( i 32 | ) | i 88 | ( i 20 | ) | i 254 | i — | i 1 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total U.S. corporate |
i 2,272 | i — | ( i 17 | ) | i 430 | i — | i — | ( i 153 | ) | i 138 | ( i 289 | ) | i 2,381 | i — | ( i 17 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 352 | i — | ( i 5 | ) | i 30 | i — | i — | ( i 8 | ) | i — | ( i 24 | ) | i 345 | i — | ( i 6 | ) | ||||||||||||||||||||||||||||||||
Energy |
i 245 | i — | i 7 | i — | i — | i — | ( i 28 | ) | i — | ( i 79 | ) | i 145 | i — | i 3 | ||||||||||||||||||||||||||||||||||
Finance and insurance |
i 305 | i 3 | ( i 1 | ) | i 1 | ( i 2 | ) | i — | ( i 62 | ) | i — | ( i 84 | ) | i 160 | i 5 | ( i 14 | ) | |||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 67 | i 1 | ( i 2 | ) | i 8 | i — | i — | ( i 14 | ) | i 3 | i — | i 63 | i — | ( i 2 | ) | |||||||||||||||||||||||||||||||||
Technology and communications |
i 28 | i — | i — | i — | i — | i — | i — | i — | i — | i 28 | i — | ( i 1 | ) | |||||||||||||||||||||||||||||||||||
Industrial |
i 95 | i 2 | ( i 4 | ) | i 14 | i — | i — | ( i 14 | ) | i — | i — | i 93 | i — | ( i 2 | ) | |||||||||||||||||||||||||||||||||
Capital goods |
i 178 | i — | i 1 | i 25 | i — | i — | i — | i — | ( i 31 | ) | i 173 | i — | i — | |||||||||||||||||||||||||||||||||||
Consumer—cyclical |
i 146 | i — | i — | i 17 | i — | i — | i — | i — | ( i 87 | ) | i 76 | i — | i — | |||||||||||||||||||||||||||||||||||
Transportation |
i 109 | i 3 | ( i 3 | ) | i — | i — | i — | ( i 49 | ) | i — | ( i 7 | ) | i 53 | i — | i — | |||||||||||||||||||||||||||||||||
Other |
i 83 | i 6 | ( i 3 | ) | i — | i — | i — | ( i 45 | ) | i — | ( i 15 | ) | i 26 | i — | ( i 1 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total non-U.S. corporate |
i 1,608 | i 15 | ( i 10 | ) | i 95 | ( i 2 | ) | i — | ( i 220 | ) | i 3 | ( i 327 | ) | i 1,162 | i 5 | ( i 23 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Residential mortgage-backed |
i 14 | i — | i — | i 5 | i — | i — | ( i 2 | ) | i 10 | i — | i 27 | i — | i — | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
i 20 | i — | ( i 2 | ) | i 1 | i — | i — | ( i 3 | ) | i — | i — | i 16 | i 1 | ( i 2 | ) | |||||||||||||||||||||||||||||||||
Other asset-backed |
i 109 | i — | i — | i 69 | i — | i — | ( i 25 | ) | i 35 | ( i 50 | ) | i 138 | i — | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total fixed maturity securities |
i 4,089 | i 18 | ( i 16 | ) | i 602 | ( i 2 | ) | i — | ( i 403 | ) | i 186 | ( i 666 | ) | i 3,808 | i 9 | ( i 29 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Equity securities |
i 51 | i — | i — | i — | ( i 9 | ) | i — | ( i 5 | ) | i — | i — | i 37 | i — | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options |
i 63 | i 18 | i — | i 31 | i — | i — | ( i 70 | ) | i — | i — | i 42 | i 10 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total derivative assets |
i 63 | i 18 | i — | i 31 | i — | i — | ( i 70 | ) | i — | i — | i 42 | i 10 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total other invested assets |
i 63 | i 18 | i — | i 31 | i — | i — | ( i 70 | ) | i — | i — | i 42 | i 10 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Reinsurance recoverable (2) |
i 26 | ( i 9 | ) | i — | i — | i — | i 2 | i — | i — | i — | i 19 | ( i 9 | ) | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 assets |
$ | i 4,229 | $ | i 27 | $ | ( i 16 | ) | $ | i 633 | $ | ( i 11 | ) | $ | i 2 | $ | ( i 478 | ) | $ | i 186 | $ | ( i 666 | ) | $ | i 3,906 | $ | i 10 | $ | ( i 29 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Beginning balance as of January 1, 2020 |
Total realized and unrealized gains (losses) |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 (1) |
Transfer out of Level 3 (1) |
Ending balance as of December 31, 2020 |
Total gains (losses) attributable to assets still held |
|||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net income |
Included in OCI |
Included in net income |
Included in OCI |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | i 102 | $ | i 3 | $ | ( i 11 | ) | $ | i — | $ | i — | $ | i — | $ | ( i 1 | ) | $ | i — | $ | ( i 27 | ) | $ | i 66 | $ | i 3 | $ | ( i 11 | ) | ||||||||||||||||||||
Non-U.S. government |
i — | i — | i — | i — | i — | i — | ( i 1 | ) | i 1 | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 865 | i 9 | i 8 | i 76 | ( i 13 | ) | i — | ( i 56 | ) | i 42 | ( i 89 | ) | i 842 | i — | i 14 | |||||||||||||||||||||||||||||||||
Energy |
i 129 | i 1 | i 1 | i 30 | ( i 21 | ) | i — | ( i 21 | ) | i 22 | ( i 13 | ) | i 128 | i — | ( i 3 | ) | ||||||||||||||||||||||||||||||||
Finance and insurance |
i 572 | i 2 | i 16 | i 167 | i — | i — | ( i 41 | ) | i — | ( i 109 | ) | i 607 | i — | i 19 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 94 | i — | i 4 | i 8 | i — | i — | ( i 22 | ) | i 25 | i — | i 109 | i — | i 4 | |||||||||||||||||||||||||||||||||||
Technology and communications |
i 50 | i — | i 3 | i 82 | i — | i — | ( i 1 | ) | i 13 | ( i 100 | ) | i 47 | i — | i 5 | ||||||||||||||||||||||||||||||||||
Industrial |
i 40 | i — | i — | i — | i — | i — | i — | i — | i — | i 40 | i — | i — | ||||||||||||||||||||||||||||||||||||
Capital goods |
i 102 | i — | i — | i — | i — | i — | ( i 8 | ) | i 11 | ( i 45 | ) | i 60 | i — | i 1 | ||||||||||||||||||||||||||||||||||
Consumer—cyclical |
i 173 | i 3 | i 4 | i 15 | i — | i — | ( i 36 | ) | i 47 | ( i 56 | ) | i 150 | i — | i 6 | ||||||||||||||||||||||||||||||||||
Transportation |
i 78 | i — | ( i 1 | ) | i — | i — | i — | ( i 4 | ) | i 27 | ( i 30 | ) | i 70 | i — | i 2 | |||||||||||||||||||||||||||||||||
Other |
i 136 | i — | i 2 | i 25 | i — | i — | ( i 7 | ) | i 87 | ( i 24 | ) | i 219 | i — | i 2 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total U.S. corporate |
i 2,239 | i 15 | i 37 | i 403 | ( i 34 | ) | i — | ( i 196 | ) | i 274 | ( i 466 | ) | i 2,272 | i — | i 50 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 374 | i — | i 10 | i 13 | i — | i — | i — | i 28 | ( i 73 | ) | i 352 | i — | i 9 | |||||||||||||||||||||||||||||||||||
Energy |
i 247 | i — | ( i 5 | ) | i 7 | i — | i — | ( i 28 | ) | i 24 | i — | i 245 | i — | ( i 5 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance |
i 234 | i 4 | i 17 | i 15 | i — | i — | ( i 10 | ) | i 77 | ( i 32 | ) | i 305 | i 4 | i 17 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 59 | i — | i 3 | i 20 | i — | i — | i — | i 1 | ( i 16 | ) | i 67 | i — | i 2 | |||||||||||||||||||||||||||||||||||
Technology and communications |
i 28 | i — | i — | i — | i — | i — | i — | i — | i — | i 28 | i — | i 1 | ||||||||||||||||||||||||||||||||||||
Industrial |
i 104 | i — | i 4 | i — | i — | i — | ( i 5 | ) | i — | ( i 8 | ) | i 95 | i — | i 3 | ||||||||||||||||||||||||||||||||||
Capital goods |
i 161 | i 1 | i 1 | i 20 | i — | i — | ( i 39 | ) | i 34 | i — | i 178 | i — | i 1 | |||||||||||||||||||||||||||||||||||
Consumer—cyclical |
i 147 | i — | i 3 | i 21 | i — | i — | ( i 26 | ) | i 32 | ( i 31 | ) | i 146 | i — | i 2 | ||||||||||||||||||||||||||||||||||
Transportation |
i 191 | i — | i 1 | i 7 | i — | i — | ( i 10 | ) | i 22 | ( i 102 | ) | i 109 | i — | i 4 | ||||||||||||||||||||||||||||||||||
Other |
i 140 | i 9 | ( i 1 | ) | i 6 | i — | i — | ( i 72 | ) | i 1 | i — | i 83 | i — | i 2 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total non-U.S. corporate |
i 1,685 | i 14 | i 33 | i 109 | i — | i — | ( i 190 | ) | i 219 | ( i 262 | ) | i 1,608 | i 4 | i 36 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Residential mortgage-backed |
i 27 | i — | ( i 1 | ) | i — | i — | i — | ( i 1 | ) | i 4 | ( i 15 | ) | i 14 | i — | i — | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
i 6 | i — | i 1 | i — | i — | i — | i — | i 20 | ( i 7 | ) | i 20 | i — | i 1 | |||||||||||||||||||||||||||||||||||
Other asset-backed |
i 93 | i — | i 1 | i 124 | i — | i — | ( i 16 | ) | i 10 | ( i 103 | ) | i 109 | i — | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total fixed maturity securities |
i 4,152 | i 32 | i 60 | i 636 | ( i 34 | ) | i — | ( i 405 | ) | i 528 | ( i 880 | ) | i 4,089 | i 7 | i 76 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Equity securities |
i 51 | i — | i — | i 6 | ( i 7 | ) | i — | i — | i 1 | i — | i 51 | i — | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options |
i 81 | i 4 | i — | i 59 | i — | i — | ( i 81 | ) | i — | i — | i 63 | i 5 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total derivative assets |
i 81 | i 4 | i — | i 59 | i — | i — | ( i 81 | ) | i — | i — | i 63 | i 5 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total other invested assets |
i 81 | i 4 | i — | i 59 | i — | i — | ( i 81 | ) | i — | i — | i 63 | i 5 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Reinsurance recoverable (2) |
i 20 | i 4 | i — | i — | i — | i 2 | i — | i — | i — | i 26 | i 4 | i — | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 assets |
$ | i 4,304 | $ | i 40 | $ | i 60 | $ | i 701 | $ | ( i 41 | ) | $ | i 2 | $ | ( i 486 | ) | $ | i 529 | $ | ( i 880 | ) | $ | i 4,229 | $ | i 16 | $ | i 76 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Beginning balance as of January 1, 2019 |
Total realized and unrealized gains (losses) |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 (1) |
Transfer out of Level 3 (1) |
Ending balance as of December 31, 2019 |
Total gains (losses) included in net income attributable to assets still held |
|||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net income |
Included in OCI |
||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | i 51 | $ | i 3 | $ | i 20 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 28 | $ | i — | $ | i 102 | $ | i 3 | ||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 643 | i 1 | i 72 | i 156 | ( i 14 | ) | i — | ( i 49 | ) | i 72 | ( i 16 | ) | i 865 | i — | ||||||||||||||||||||||||||||||
Energy |
i 121 | i — | i 9 | i 17 | ( i 5 | ) | i — | ( i 13 | ) | i — | i — | i 129 | i — | |||||||||||||||||||||||||||||||
Finance and insurance |
i 534 | i — | i 51 | i 50 | i — | i — | ( i 39 | ) | i 35 | ( i 59 | ) | i 572 | i — | |||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 73 | i — | i 5 | i 23 | ( i 5 | ) | i — | ( i 11 | ) | i 9 | i — | i 94 | i — | |||||||||||||||||||||||||||||||
Technology and communications |
i 50 | i — | i 7 | i — | i — | i — | ( i 1 | ) | i 5 | ( i 11 | ) | i 50 | i — | |||||||||||||||||||||||||||||||
Industrial |
i 39 | i — | i 1 | i — | i — | i — | i — | i — | i — | i 40 | i — | |||||||||||||||||||||||||||||||||
Capital goods |
i 92 | i — | i 10 | i — | i — | i — | i — | i — | i — | i 102 | i — | |||||||||||||||||||||||||||||||||
Consumer—cyclical |
i 211 | i — | i 11 | i — | ( i 13 | ) | i — | ( i 18 | ) | i — | ( i 18 | ) | i 173 | ( i 1 | ) | |||||||||||||||||||||||||||||
Transportation |
i 57 | i — | i 3 | i 39 | i — | i — | ( i 10 | ) | i — | ( i 11 | ) | i 78 | i — | |||||||||||||||||||||||||||||||
Other |
i 178 | i — | i 6 | i 23 | i — | i — | ( i 20 | ) | i 8 | ( i 59 | ) | i 136 | i — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total U.S. corporate |
i 1,998 | i 1 | i 175 | i 308 | ( i 37 | ) | i — | ( i 161 | ) | i 129 | ( i 174 | ) | i 2,239 | ( i 1 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||
Utilities |
i 404 | i — | i 30 | i 30 | ( i 7 | ) | i — | ( i 67 | ) | i — | ( i 16 | ) | i 374 | i — | ||||||||||||||||||||||||||||||
Energy |
i 217 | ( i 1 | ) | i 19 | i 46 | ( i 18 | ) | i — | ( i 16 | ) | i — | i — | i 247 | i — | ||||||||||||||||||||||||||||||
Finance and insurance |
i 171 | i 4 | i 23 | i 7 | i — | i — | ( i 16 | ) | i 54 | ( i 9 | ) | i 234 | i 4 | |||||||||||||||||||||||||||||||
Consumer—non-cyclical |
i 106 | i 2 | i 5 | i 1 | i — | i — | ( i 55 | ) | i — | i — | i 59 | i — | ||||||||||||||||||||||||||||||||
Technology and communications |
i 26 | i — | i 2 | i — | i — | i — | i — | i — | i — | i 28 | i — | |||||||||||||||||||||||||||||||||
Industrial |
i 61 | i — | i 5 | i 38 | i — | i — | i — | i — | i — | i 104 | i — | |||||||||||||||||||||||||||||||||
Capital goods |
i 173 | i — | i 12 | i 10 | i — | i — | ( i 16 | ) | i 3 | ( i 21 | ) | i 161 | i — | |||||||||||||||||||||||||||||||
Consumer—cyclical |
i 122 | i — | i 12 | i 16 | i — | i — | ( i 3 | ) | i — | i — | i 147 | i — | ||||||||||||||||||||||||||||||||
Transportation |
i 171 | i — | i 10 | i 27 | i — | i — | i — | i — | ( i 17 | ) | i 191 | i — | ||||||||||||||||||||||||||||||||
Other |
i 81 | i — | i 12 | i 43 | i — | i — | ( i 2 | ) | i 6 | i — | i 140 | i — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total non-U.S. corporate |
i 1,532 | i 5 | i 130 | i 218 | ( i 25 | ) | i — | ( i 175 | ) | i 63 | ( i 63 | ) | i 1,685 | i 4 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Residential mortgage-backed |
i 35 | i — | i 1 | i — | ( i 2 | ) | i — | ( i 1 | ) | i — | ( i 6 | ) | i 27 | i — | ||||||||||||||||||||||||||||||
Commercial mortgage-backed |
i 95 | i — | i 17 | i 3 | i — | i — | i — | i 1 | ( i 110 | ) | i 6 | i — | ||||||||||||||||||||||||||||||||
Other asset-backed |
i 81 | i — | i 3 | i 122 | i — | i — | ( i 18 | ) | i 28 | ( i 123 | ) | i 93 | i — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total fixed maturity securities |
i 3,792 | i 9 | i 346 | i 651 | ( i 64 | ) | i — | ( i 355 | ) | i 249 | ( i 476 | ) | i 4,152 | i 6 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Equity securities |
i 58 | i — | i — | i 2 | ( i 9 | ) | i — | i — | i — | i — | i 51 | i — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||||||||||||||||||||||||||
Equity index options |
i 39 | i 43 | i — | i 63 | i — | i — | ( i 64 | ) | i — | i — | i 81 | i 18 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total derivative assets |
i 39 | i 43 | i — | i 63 | i — | i — | ( i 64 | ) | i — | i — | i 81 | i 18 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total other invested assets |
i 39 | i 43 | i — | i 63 | i — | i — | ( i 64 | ) | i — | i — | i 81 | i 18 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Reinsurance recoverable (2) |
i 20 | ( i 1 | ) | i — | i — | i — | i 1 | i — | i — | i — | i 20 | ( i 1 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Level 3 assets |
$ | i 3,909 | $ | i 51 | $ | i 346 | $ | i 716 | $ | ( i 73 | ) | $ | i 1 | $ | ( i 419 | ) | $ | i 249 | $ | ( i 476 | ) | $ | i 4,304 | $ | i 23 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) |
Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Total realized and unrealized gains (losses) included in net income: |
||||||||||||
Net investment income |
$ | i 19 | $ | i 32 | $ | i 10 | ||||||
Net investment gains (losses) |
i 8 | i 8 | i 41 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | i 27 | $ | i 40 | $ | i 51 | ||||||
|
|
|
|
|
|
|||||||
Total gains (losses) included in net income attributable to assets still held: |
||||||||||||
Net investment income |
$ | i 9 | $ | i 7 | $ | i 6 | ||||||
Net investment gains (losses) |
i 1 | i 9 | i 17 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | i 10 | $ | i 16 | $ | i 23 | ||||||
|
|
|
|
|
|
(Amounts in millions) |
Valuation technique |
Fair value |
Unobservable input |
Range |
Weighted- average (1) |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
i Internal models | $ | i 916 | Credit spreads | i 59bps - i 202bps | i 138bps | ||||||||||||||
Energy |
i Internal models | i 61 | Credit spreads | i 95bps - i 217bps | i 149bps | |||||||||||||||
Finance and insurance |
i Internal models | i 679 | Credit spreads | i 50bps - i 184bps | i 131bps | |||||||||||||||
Consumer—non-cyclical |
i Internal models | i 104 | Credit spreads | i 55bps - i 217bps | i 121bps | |||||||||||||||
Technology and communications |
i Internal models | i 29 | Credit spreads | i 80bps - i 158bps | i 131bps | |||||||||||||||
Industrial |
i Internal models | i 37 | Credit spreads | i 91bps - i 171bps | i 123bps | |||||||||||||||
Capital goods |
i Internal models | i 45 | Credit spreads | i 67bps - i 175bps | i 133bps | |||||||||||||||
Consumer—cyclical |
i Internal models | i 137 | Credit spreads | i 87bps - i 165bps | i 125bps | |||||||||||||||
Transportation |
i Internal models | i 53 | Credit spreads | i 47bps - i 139bps | i 91bps | |||||||||||||||
Other |
i Internal models | i 166 | Credit spreads | i 78bps - i 163bps | i 95bps | |||||||||||||||
|
|
|||||||||||||||||||
Total U.S. corporate |
i Internal models | $ | i 2,227 | Credit spreads | i 47bps - i 217bps |
i 130bps | ||||||||||||||
|
|
|||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
i Internal models | $ | i 344 | Credit spreads | i 70bps - i 202bps | i 118bps | ||||||||||||||
Energy |
i Internal models | i 135 | Credit spreads | i 76bps - i 171bps | i 120bps | |||||||||||||||
Finance and insurance |
i Internal models | i 160 | Credit spreads | i 71bps - i 128bps | i 98bps | |||||||||||||||
Consumer—non-cyclical |
i Internal models | i 61 | Credit spreads | i 55bps - i 140bps | i 94bps | |||||||||||||||
Technology and communications |
i Internal models | i 28 | Credit spreads | i 95bps - i 114bps | i 108bps | |||||||||||||||
Industrial |
i Internal models | i 93 | Credit spreads | i 67bps - i 161bps | i 113bps | |||||||||||||||
Capital goods |
i Internal models | i 173 | Credit spreads | i 55bps - i 202bps | i 115bps | |||||||||||||||
Consumer—cyclical |
i Internal models | i 61 | Credit spreads | i 91bps - i 171bps | i 121bps | |||||||||||||||
Transportation |
i Internal models | i 53 | Credit spreads | i 55bps - i 171bps | i 84bps | |||||||||||||||
Other |
i Internal models | i 26 | Credit spreads | i 64bps - i 120bps | i 102bps | |||||||||||||||
|
|
|||||||||||||||||||
Total non-U.S. corporate |
i Internal models | $ | i 1,134 | Credit spreads | i 55bps - i 202bps | i 111bps | ||||||||||||||
|
|
|||||||||||||||||||
Derivative assets: |
||||||||||||||||||||
Discounted cash | Equity index | |||||||||||||||||||
Equity index options |
flows | $ | i 42 | volatility | i 6% - i 50% | i 25 | % |
(1) |
Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. |
2021 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Liabilities |
||||||||||||||||
Policyholder account balances: |
||||||||||||||||
GMWB embedded derivatives (1) |
$ | i 271 | $ | i — | $ | i — | $ | i 271 | ||||||||
Fixed index annuity embedded derivatives |
i 294 | i — | i — | i 294 | ||||||||||||
Indexed universal life embedded derivatives |
i 25 | i — | i — | i 25 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total policyholder account balances |
i 590 | i — | i — | i 590 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate swaps |
i 26 | i — | i 26 | i — | ||||||||||||
Total derivative liabilities |
i 26 | i — | i 26 | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | i 616 | $ | i — | $ | i 26 | $ | i 590 | ||||||||
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
2020 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Liabilities |
||||||||||||||||
Policyholder account balances: |
||||||||||||||||
GMWB embedded derivatives (1) |
$ | i 379 | $ | i — | $ | i — | $ | i 379 | ||||||||
Fixed index annuity embedded derivatives |
i 399 | i — | i — | i 399 | ||||||||||||
Indexed universal life embedded derivatives |
i 26 | i — | i — | i 26 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total policyholder account balances |
i 804 | i — | i — | i 804 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate swaps |
i 23 | i — | i 23 | i — | ||||||||||||
Foreign currency swaps |
i 2 | i — | i 2 | i — | ||||||||||||
Other foreign currency contracts |
i 1 | i — | i 1 | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
i 26 | i — | i 26 | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | i 830 | $ | i — | $ | i 26 | $ | i 804 | ||||||||
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2021 |
Total realized and unrealized (gains) losses |
Ending balance as of December 31, 2021 |
Total (gains) losses attributable to liabilities still held |
|||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net (income) |
Included in OCI |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 |
Transfer out of Level 3 |
Included in net (income) |
Included in OCI |
||||||||||||||||||||||||||||||||||||||
Policyholder account balances: |
||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) |
$ | i 379 | $ | ( i 133 | ) | $ | i — | $ | i — | $ | i — | $ | i 25 | $ | i — | $ | i — | $ | i — | $ | i 271 | $ | ( i 127 | ) | $ | i — | ||||||||||||||||||||||
Fixed index annuity embedded derivatives |
i 399 | i 32 | i — | i — | i — | i — | ( i 136 | ) | i — | ( i 1 | ) | i 294 | i 32 | i — | ||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives |
i 26 | ( i 24 | ) | i — | i — | i — | i 23 | i — | i — | i — | i 25 | ( i 24 | ) | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total policyholder account balances |
i 804 | ( i 125 | ) | i — | i — | i — | i 48 | ( i 136 | ) | i — | ( i 1 | ) | i 590 | ( i 119 | ) | i — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 liabilities |
$ | i 804 | $ | ( i 125 | ) | $ | i — | $ | i — | $ | i — | $ | i 48 | $ | ( i 136 | ) | $ | i — | $ | ( i 1 | ) | $ | i 590 | $ | ( i 119 | ) | $ | i — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2020 |
Total realized and unrealized (gains) losses |
Ending balance as of December 31, 2020 |
Total (gains) losses attributable to liabilities still held |
|||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net (income) |
Included in OCI |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 |
Transfer out of Level 3 |
Included in net (income) |
Included in OCI |
||||||||||||||||||||||||||||||||||||||
Policyholder account balances: |
||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) |
$ | i 323 | $ | i 32 | $ | i — | $ | i — | $ | i — | $ | i 24 | $ | i — | $ | i — | $ | i — | $ | i 379 | $ | i 38 | $ | i — | ||||||||||||||||||||||||
Fixed index annuity embedded derivatives |
i 452 | i 51 | i — | i — | i — | i — | ( i 104 | ) | i — | i — | i 399 | i 51 | i — | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives |
i 19 | ( i 17 | ) | i — | i — | i — | i 24 | i — | i — | i — | i 26 | ( i 17 | ) | i — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total policyholder account balances |
i 794 | i 66 | i — | i — | i — | i 48 | ( i 104 | ) | i — | i — | i 804 | i 72 | i — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 liabilities |
$ | i 794 | $ | i 66 | $ | i — | $ | i — | $ | i — | $ | i 48 | $ | ( i 104 | ) | $ | i — | $ | i — | $ | i 804 | $ | i 72 | $ | i — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2019 |
Total realized and unrealized (gains) losses |
Ending balance as of December 31, 2019 |
Total (gains) losses included in net (income) attributable to liabilities still held |
|||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net (income) |
Included in OCI |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 |
Transfer out of Level 3 |
||||||||||||||||||||||||||||||||||||
Policyholder account balances: |
||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) |
$ | i 337 | $ | ( i 39 | ) | $ | i — | $ | i — | $ | i — | $ | i 25 | $ | i — | $ | i — | $ | i — | $ | i 323 | $ | ( i 34 | ) | ||||||||||||||||||||
Fixed index annuity embedded derivatives |
i 389 | i 90 | i — | i — | i — | i — | ( i 27 | ) | i — | i — | i 452 | i 90 | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives |
i 12 | ( i 4 | ) | i — | i — | i — | i 11 | i — | i — | i — | i 19 | ( i 4 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total policyholder account balances |
i 738 | i 47 | i — | i — | i — | i 36 | ( i 27 | ) | i — | i — | i 794 | i 52 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Level 3 liabilities |
$ | i 738 | $ | i 47 | $ | i — | $ | i — | $ | i — | $ | i 36 | $ | ( i 27 | ) | $ | i — | $ | i — | $ | i 794 | $ | i 52 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Total realized and unrealized (gains) losses included in net (income): |
||||||||||||
Net investment income |
$ | i — | $ | i — | $ | i — | ||||||
Net investment (gains) losses |
( i 125 | ) | i 66 | i 47 | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | ( i 125 | ) | $ | i 66 | $ | i 47 | |||||
|
|
|
|
|
|
|||||||
Total (gains) losses included in net (income) attributable to liabilities still held: |
||||||||||||
Net investment income |
$ | i — | $ | i — | $ | i — | ||||||
Net investment (gains) losses |
( i 119 | ) | i 72 | i 52 | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | ( i 119 | ) | $ | i 72 | $ | i 52 | |||||
|
|
|
|
|
|
(Amounts in millions) |
Valuation technique |
Fair value |
Unobservable input |
Range |
Weighted- average (1) |
|||||||||||||||
Policyholder account balances: |
||||||||||||||||||||
Withdrawal | ||||||||||||||||||||
utilization rate | i 60% - i 89% |
i 76% | ||||||||||||||||||
Lapse rate | i 2% - i 9% |
i 4% | ||||||||||||||||||
Non-performance risk |
|
|||||||||||||||||||
(credit spreads) | i 20bps - i 83bps |
i 66bps | ||||||||||||||||||
GMWB embedded derivatives (2) |
|
i Stochastic cash flow model |
|
$ i 271 | Equity index volatility |
|
i 15% - i 27% |
i 22% | ||||||||||||
Fixed index annuity embedded derivatives |
i Option budget method | |
$ i 294 | Expected future interest credited |
|
i —% - i 3% |
i 1% | |||||||||||||
Indexed universal life embedded derivatives |
i Option budget method | |
$ i 25 | Expected future interest credited |
|
i 3% - i 11% |
i 5% |
(1) |
Unobservable inputs weighted by the policyholder account balances associated with the instrument. |
(2) |
Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
2021 |
||||||||||||||||||||||||
Notional amount |
Carrying amount |
Fair value |
||||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Commercial mortgage loans, net |
(1 |
) |
$ | i 6,830 | $ | i 7,224 | $ | i — | $ | i — | $ | i 7,224 | ||||||||||||
Bank loan investments |
(1 |
) |
i 363 | i 370 | i — | i — | i 370 | |||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Long-term borrowings (2) |
(1 |
) |
i 1,899 | i 1,767 | i — | i 1,767 | i — | |||||||||||||||||
Investment contracts |
(1 |
) |
i 8,657 | i 9,352 | i — | i — | i 9,352 | |||||||||||||||||
Other firm commitments: |
||||||||||||||||||||||||
Commitments to fund limited partnerships |
i 1,185 | i — | i — | i — | i — | i — | ||||||||||||||||||
Commitments to fund bank loan investments |
i 141 | i — | i — | i — | i — | i — | ||||||||||||||||||
Ordinary course of business lending commitments |
i 125 | i — | i — | i — | i — | i — |
(1) |
These financial instruments do not have notional amounts. |
(2) |
See note 12 for additional information related to borrowings. |
2020 |
||||||||||||||||||||||||
Notional amount |
Carrying amount |
Fair value |
||||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Commercial mortgage loans, net |
(1 |
) |
$ | i 6,743 | $ | i 7,145 | $ | i — | $ | i — | $ | i 7,145 | ||||||||||||
Bank loan investments |
(1 |
) |
i 344 | i 354 | i — | i — | i 354 | |||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Long-term borrowings (2) |
(1 |
) |
i 3,403 | i 3,090 | i — | i 3,090 | i — | |||||||||||||||||
Investment contracts |
(1 |
) |
i 10,276 | i 11,353 | i — | i — | i 11,353 | |||||||||||||||||
Other firm commitments: |
||||||||||||||||||||||||
Commitments to fund limited partnerships |
i 1,090 | i — | i — | i — | i — | i — | ||||||||||||||||||
Commitments to fund bank loan investments |
i 32 | i — | i — | i — | i — | i — | ||||||||||||||||||
Ordinary course of business lending commitments |
i 117 | i — | i — | i — | i — | i — |
(1) |
These financial instruments do not have notional amounts. |
(2) |
See note 12 for additional information related to borrowings. |
2021 |
2020 |
|||||||||||||||
Carrying |
Commitments |
Carrying |
Commitments |
|||||||||||||
(Amounts in millions) |
value |
to fund |
value |
to fund |
||||||||||||
Limited partnerships accounted for at NAV: |
||||||||||||||||
Private equity funds (1) |
$ | i 1,338 | $ | i 951 | $ | i 749 | $ | i 859 | ||||||||
Real estate funds (2) |
i 67 | i 101 | i 39 | i 66 | ||||||||||||
Infrastructure funds (3) |
i 57 | i 13 | i 47 | i 22 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total limited partnerships accounted for at NAV |
i 1,462 | i 1,065 | i 835 | i 947 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Limited partnerships accounted for under equity method of accounting |
i 437 | i 120 | i 213 | i 143 | ||||||||||||
Low-income housing tax credits(4) |
i 1 | i — | i 1 | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | i 1,900 | $ | i 1,185 | $ | i 1,049 | $ | i 1,090 | ||||||||
|
|
|
|
|
|
|
|
(1) |
This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America. |
(2) |
This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments. |
(3) |
This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally. |
(4) |
Relates to limited partnership investments that invest in affordable housing projects that qualify for the Low-Income Housing Tax Credit and are accounted for using the proportional amortization method. |
• | In 2021 and 2020, River Lake VI had a permitted accounting practice from the State of Delaware to carry its excess of loss reinsurance agreement with The Canada Life Assurance Company for its universal life insurance business assumed from Genworth Life and Annuity Insurance Company (“GLAIC”) as an admitted asset. Effective December 1, 2021, River Lake VI was granted a permitted accounting practice from the State of Delaware to carry its excess of loss reinsurance agreement with The Canada Life Assurance Company for its term life insurance business assumed from GLAIC as an admitted asset. In 2020, River Lake VI had a permitted accounting practice from the State of Delaware to carry its term life insurance reserves on a basis similar to U.S. GAAP, including an extension of this permitted accounting practice to include additional term life insurance policies assumed from GLAIC since
2019, which was withdrawn in 2021. |
• | Effective December 1, 2021, River Lake X was granted a permitted accounting practice from the State of Vermont to carry its excess of loss reinsurance agreement with Hannover Life Reassurance Company of America for its term life insurance business assumed from GLAIC as an admitted asset. In 2020, River Lake VII, River Lake VIII and River Lake X each had a permitted accounting practice from the State of Vermont to carry their reserves on a basis similar to U.S. GAAP, which was withdrawn by River Lake X in 2021. As of December 31, 2021, there were no remaining statutory reserves in River Lake VII and River Lake VIII as discussed below. |
• | GLICNY was granted a permitted accounting practice from the New York State Department of Financial Services (“NYDFS”) whereby GLICNY is exempt from the requirements of principle-based reserves (“PBR”) as prescribed in the NAIC Valuation Manual under New York Regulation. The permitted practice is limited to term life insurance conversion policies issued in 2020 where existing policyholders exercised their contract options prior to the enactment of PBR requirements. |
• | GLAIC was granted a permitted accounting practice from the Commonwealth of Virginia State Corporation Commission Bureau of Insurance whereby GLAIC is exempt from the requirements of PBR as prescribed in the NAIC Valuation Manual. The permitted practice is limited to ordinary life insurance business issued in 2020 on revised contracts where existing policyholders exercised their contract options prior to the enactment of PBR requirements. |
Years ended December 31, |
||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Combined statutory net income (loss): |
||||||||||||
Life insurance subsidiaries, excluding captive life reinsurance subsidiaries |
$ | i 654 | $ | i 197 | $ | i 740 | ||||||
Mortgage insurance subsidiaries |
i 593 | i 404 | i 847 | |||||||||
|
|
|
|
|
|
|||||||
Combined statutory net income, excluding captive reinsurance subsidiaries |
i 1,247 | i 601 | i 1,587 | |||||||||
Captive life insurance subsidiaries |
( i 1,351 | ) | i 9 | ( i 350 | ) | |||||||
|
|
|
|
|
|
|||||||
Combined statutory net income (loss) |
$ | ( i 104 | ) | $ | i 610 | $ | i 1,237 | |||||
|
|
|
|
|
|
As of December 31, |
||||||||
(Amounts in millions) |
2021 |
2020 |
||||||
Combined statutory capital and surplus: |
||||||||
Life insurance subsidiaries, excluding captive life reinsurance subsidiaries |
$ | i 2,945 | $ | i 2,131 | ||||
Mortgage insurance subsidiaries |
i 4,439 | i 4,073 | ||||||
|
|
|
|
|||||
Combined statutory capital and surplus |
$ | i 7,384 | $ | i 6,204 | ||||
|
|
|
|
• | GMICO to maintain i 115% of PMIERs Minimum Required Assets through 2021, i 120%
during 2022 and i 125% thereafter; |
• | Enact Holdings to retain $ i 300 million of its holding company cash that can be drawn down exclusively for its debt service or to contribute to GMICO to meet their regulatory capital needs including PMIERs; and |
• | written approval must be received from the GSEs prior to any additional debt issuance by either GMICO or Enact Holdings. |
2021 |
Enact |
U.S. Life Insurance |
Runoff |
Corporate and Other |
Total |
|||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
Premiums |
$ | i 975 | $ | i 2,454 | $ | i — | $ | i 6 | $ | i 3,435 | ||||||||||
Net investment income |
i 141 | i 3,029 | i 194 | i 6 | i 3,370 | |||||||||||||||
Net investment gains (losses) |
( i 2 | ) | i 329 | i 3 | ( i 7 | ) | i 323 | |||||||||||||
Policy fees and other income |
i 4 | i 565 | i 134 | i 1 | i 704 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
i 1,118 | i 6,377 | i 331 | i 6 | i 7,832 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Benefits and other changes in policy reserves |
i 125 | i 4,230 | i 27 | i 1 | i 4,383 | |||||||||||||||
Interest credited |
i — | i 346 | i 162 | i — | i 508 | |||||||||||||||
Acquisition and operating expenses, net of deferrals |
i 230 | i 865 | i 53 | i 75 | i 1,223 | |||||||||||||||
Amortization of deferred acquisition costs and intangibles |
i 15 | i 340 | i 20 | i 2 | i 377 | |||||||||||||||
Interest expense |
i 51 | i — | i — | i 109 | i 160 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total benefits and expenses |
i 421 | i 5,781 | i 262 | i 187 | i 6,651 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations before income taxes |
i 697 | i 596 | i 69 | ( i 181 | ) | i 1,181 | ||||||||||||||
Provision (benefit) for income taxes |
i 148 | i 155 | i 13 | ( i 53 | ) | i 263 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
i 549 | i 441 | i 56 | ( i 128 | ) | i 918 | ||||||||||||||
Income from discontinued operations, net of taxes |
i — | i — | i — | i 27 | i 27 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
i 549 | i 441 | i 56 | ( i 101 | ) | i 945 | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i 33 | i — | i — | i — | i 33 | |||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i — | i — | i — | i 8 | i 8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 516 | $ | i 441 | $ | i 56 | $ | ( i 109 | ) | $ | i 904 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 516 | $ | i 441 | $ | i 56 | $ | ( i 128 | ) | $ | i 885 | |||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
i — | i — | i — | i 19 | i 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 516 | $ | i 441 | $ | i 56 | $ | ( i 109 | ) | $ | i 904 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment assets |
$ | i 5,850 | $ | i 81,210 | $ | i 9,460 | $ | i 2,651 | $ | i 99,171 | ||||||||||
Assets held for sale related to discontinued operations |
i — | i — | i — | i — | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | i 5,850 | $ | i 81,210 | $ | i 9,460 | $ | i 2,651 | $ | i 99,171 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2020 |
Enact |
U.S. Life Insurance |
Runoff |
Corporate and Other |
Total |
|||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
Premiums |
$ | i 971 | $ | i 2,858 | $ | i — | $ | i 7 | $ | i 3,836 | ||||||||||
Net investment income |
i 133 | i 2,878 | i 210 | i 6 | i 3,227 | |||||||||||||||
Net investment gains (losses) |
( i 4 | ) | i 517 | ( i 26 | ) | i 5 | i 492 | |||||||||||||
Policy fees and other income |
i 6 | i 595 | i 130 | ( i 2 | ) | i 729 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
i 1,106 | i 6,848 | i 314 | i 16 | i 8,284 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Benefits and other changes in policy reserves |
i 381 | i 4,781 | i 48 | i 4 | i 5,214 | |||||||||||||||
Interest credited |
i — | i 383 | i 166 | i — | i 549 | |||||||||||||||
Acquisition and operating expenses, net of deferrals |
i 206 | i 620 | i 48 | i 61 | i 935 | |||||||||||||||
Amortization of deferred acquisition costs and intangibles |
i 21 | i 418 | i 23 | i 1 | i 463 | |||||||||||||||
Interest expense |
i 18 | i 5 | i — | i 172 | i 195 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total benefits and expenses |
i 626 | i 6,207 | i 285 | i 238 | i 7,356 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations before income taxes |
i 480 | i 641 | i 29 | ( i 222 | ) | i 928 | ||||||||||||||
Provision (benefit) for income taxes |
i 102 | i 163 | i 4 | ( i 39 | ) | i 230 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) from continuing operations |
i 378 | i 478 | i 25 | ( i 183 | ) | i 698 | ||||||||||||||
Loss from discontinued operations, net of taxes |
i — | i — | i — | ( i 486 | ) | ( i 486 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
i 378 | i 478 | i 25 | ( i 669 | ) | i 212 | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i — | i — | i — | i — | i — | |||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i — | i — | i — | i 34 | i 34 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 378 | $ | i 478 | $ | i 25 | $ | ( i 703 | ) | $ | i 178 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 378 | $ | i 478 | $ | i 25 | $ | ( i 183 | ) | $ | i 698 | |||||||||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
i — | i — | i — | ( i 520 | ) | ( i 520 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 378 | $ | i 478 | $ | i 25 | $ | ( i 703 | ) | $ | i 178 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment assets |
$ | i 5,627 | $ | i 84,671 | $ | i 9,735 | $ | i 2,897 | $ | i 102,930 | ||||||||||
Assets held for sale related to discontinued operations |
i — | i — | i — | i 2,817 | i 2,817 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | i 5,627 | $ | i 84,671 | $ | i 9,735 | $ | i 5,714 | $ | i 105,747 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2019 |
Enact |
U.S. Life Insurance |
Runoff |
Corporate and Other |
Total |
|||||||||||||||
(Amounts in millions) |
||||||||||||||||||||
Premiums |
$ | i 856 | $ | i 2,861 | $ | i — | $ | i 8 | $ | i 3,725 | ||||||||||
Net investment income |
i 117 | i 2,852 | i 187 | i 8 | i 3,164 | |||||||||||||||
Net investment gains (losses) |
i 1 | i 82 | ( i 25 | ) | ( i 31 | ) | i 27 | |||||||||||||
Policy fees and other income |
i 4 | i 643 | i 140 | i 2 | i 789 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
i 978 | i 6,438 | i 302 | ( i 13 | ) | i 7,705 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Benefits and other changes in policy reserves |
i 50 | i 4,979 | i 27 | i 3 | i 5,059 | |||||||||||||||
Interest credited |
i — | i 419 | i 158 | i — | i 577 | |||||||||||||||
Acquisition and operating expenses, net of deferrals |
i 191 | i 604 | i 52 | i 62 | i 909 | |||||||||||||||
Amortization of deferred acquisition costs and intangibles |
i 15 | i 372 | i 18 | i 3 | i 408 | |||||||||||||||
Interest expense |
i — | i 17 | i — | i 214 | i 231 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total benefits and expenses |
i 256 | i 6,391 | i 255 | i 282 | i 7,184 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations before income taxes |
i 722 | i 47 | i 47 | ( i 295 | ) | i 521 | ||||||||||||||
Provision (benefit) for income taxes |
i 153 | i 34 | i 8 | ( i 56 | ) | i 139 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) from continuing operations |
i 569 | i 13 | i 39 | ( i 239 | ) | i 382 | ||||||||||||||
Income from discontinued operations, net of taxes |
i — | i — | i — | i 148 | i 148 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
i 569 | i 13 | i 39 | ( i 91 | ) | i 530 | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i — | i — | i — | i — | i — | |||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i — | i — | i — | i 187 | i 187 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 569 | $ | i 13 | $ | i 39 | $ | ( i 278 | ) | $ | i 343 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 569 | $ | i 13 | $ | i 39 | $ | ( i 239 | ) | $ | i 382 | |||||||||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
i — | i — | i — | ( i 39 | ) | ( i 39 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | i 569 | $ | i 13 | $ | i 39 | $ | ( i 278 | ) | $ | i 343 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Revenues: |
||||||||||||
Enact segment |
$ | i 1,118 | $ | i 1,106 | $ | i 978 | ||||||
U.S. Life Insurance segment: |
||||||||||||
Long-term care insurance |
i 4,875 | i 4,960 | i 4,385 | |||||||||
Life insurance |
i 996 | i 1,357 | i 1,444 | |||||||||
Fixed annuities |
i 506 | i 531 | i 609 | |||||||||
U.S. Life Insurance segment |
i 6,377 | i 6,848 | i 6,438 | |||||||||
Runoff segment |
i 331 | i 314 | i 302 | |||||||||
Corporate and Other activities |
i 6 | i 16 | ( i 13 | ) | ||||||||
Total revenues |
$ | i 7,832 | $ | i 8,284 | $ | i 7,705 | ||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
Add: net income from continuing operations attributable to noncontrolling interests |
i 33 | i — | i — | |||||||||
Add: net income from discontinued operations attributable to noncontrolling interests |
i 8 | i 34 | i 187 | |||||||||
Net income |
i 945 | i 212 | i 530 | |||||||||
Less: income (loss) from discontinued operations, net of taxes |
i 27 | ( i 486 | ) | i 148 | ||||||||
Income from continuing operations |
i 918 | i 698 | i 382 | |||||||||
Less: net income from continuing operations attributable to noncontrolling interests |
i 33 | i — | i — | |||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
i 885 | i 698 | i 382 | |||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||
Net investment (gains) losses, net (1) |
( i 324 | ) | ( i 503 | ) | ( i 38 | ) | ||||||
(Gains) losses on early extinguishment of debt |
i 45 | i 9 | i — | |||||||||
Initial loss from life block transaction |
i 92 | i — | i — | |||||||||
Expenses related to restructuring |
i 34 | i 3 | i 4 | |||||||||
Taxes on adjustments |
i 33 | i 103 | i 7 | |||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | i 765 | $ | i 310 | $ | i 355 | ||||||
(1) |
For the years ended December 31, 2021, 2020 and 2019, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $( i 1) million,
$( i 11) million and $( i 11)
million, respectively. |
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||
Enact segment |
$ | i 520 | $ | i 381 | $ | i 568 | ||||||
U.S. Life Insurance segment: |
||||||||||||
Long-term care insurance |
i 445 | i 237 | i 57 | |||||||||
Life insurance |
( i 269 | ) | ( i 247 | ) | ( i 181 | ) | ||||||
Fixed annuities |
i 91 | i 78 | i 69 | |||||||||
U.S. Life Insurance segment |
i 267 | i 68 | ( i 55 | ) | ||||||||
Runoff segment |
i 54 | i 43 | i 56 | |||||||||
Corporate and Other activities |
( i 76 | ) | ( i 182 | ) | ( i 214 | ) | ||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders |
$ | i 765 | $ | i 310 | $ | i 355 | ||||||
2021 |
||||||||||||
(Amounts in millions) |
United States |
International (1) |
Total |
|||||||||
Total revenues |
$ | i 7,825 | $ | i 7 | $ | i 7,832 | ||||||
Income (loss) from continuing operations |
$ | i 921 | $ | ( i 3 | ) | $ | i 918 | |||||
Net income (loss) |
$ | i 948 | $ | ( i 3 | ) | $ | i 945 | |||||
Segment assets |
$ | i 99,117 | $ | i 54 | $ | i 99,171 | ||||||
Assets held for sale related to discontinued operations |
i — | i — | i — | |||||||||
Total assets |
$ | i 99,117 | $ | i 54 | $ | i 99,171 | ||||||
2020 |
||||||||||||
(Amounts in millions) |
United States |
International (1) |
Total |
|||||||||
Total revenues |
$ | i 8,275 | $ | i 9 | $ | i 8,284 | ||||||
Income (loss) from continuing operations |
$ | i 700 | $ | ( i 2 | ) | $ | i 698 | |||||
Net income (loss) |
$ | i 214 | $ | ( i 2 | ) | $ | i 212 | |||||
Segment assets |
$ | i 102,871 | $ | i 59 | $ | i 102,930 | ||||||
Assets held for sale related to discontinued operations |
i — | i 2,817 | i 2,817 | |||||||||
Total assets |
$ | i 102,871 | $ | i 2,876 | $ | i 105,747 | ||||||
2019 |
||||||||||||
(Amounts in millions) |
United States |
International (1) |
Total |
|||||||||
Total revenues |
$ | i 7,696 | $ | i 9 | $ | i 7,705 | ||||||
Income (loss) from continuing operations |
$ | i 384 | $ | ( i 2 | ) | $ | i 382 | |||||
Net income |
$ | i 532 | $ | ( i 2 | ) | $ | i 530 | |||||
(1) |
Predominantly comprised of operations in Mexico. |
Three months ended |
||||||||||||||||
(Amounts in millions, except per share amounts) |
||||||||||||||||
Total revenues (1) |
$ | i 1,985 | $ | i 2,041 | $ | i 2,070 | $ | i 1,736 | ||||||||
Total benefits and expenses (2) |
$ | i 1,752 | $ | i 1,721 | $ | i 1,697 | $ | i 1,481 | ||||||||
Income from continuing operations (1), (2), (3) |
$ | i 174 | $ | i 245 | $ | i 306 | $ | i 193 | ||||||||
Income (loss) from discontinued operations, net of taxes |
$ | i 21 | $ | ( i 5 | ) | $ | i 12 | $ | ( i 1 | ) | ||||||
Net income (1), (2), (3) |
$ | i 195 | $ | i 240 | $ | i 318 | $ | i 192 | ||||||||
Net income from continuing operations attributable to noncontrolling interests (4) |
$ | i — | $ | i — | $ | i 4 | $ | i 29 | ||||||||
Net income from discontinued operations attributable to noncontrolling interests |
$ | i 8 | $ | i — | $ | i — | $ | i — | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders (4) |
$ | i 187 | $ | i 240 | $ | i 314 | $ | i 163 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 174 | $ | i 245 | $ | i 302 | $ | i 164 | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
i 13 | ( i 5 | ) | i 12 | ( i 1 | ) | ||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 187 | $ | i 240 | $ | i 314 | $ | i 163 | ||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||
Basic |
$ | i 0.35 | $ | i 0.48 | $ | i 0.59 | $ | i 0.32 | ||||||||
Diluted |
$ | i 0.34 | $ | i 0.47 | $ | i 0.59 | $ | i 0.32 | ||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||
Basic |
$ | i 0.37 | $ | i 0.47 | $ | i 0.62 | $ | i 0.32 | ||||||||
Diluted |
$ | i 0.37 | $ | i 0.47 | $ | i 0.61 | $ | i 0.32 | ||||||||
Weighted-average common shares outstanding: |
||||||||||||||||
Basic |
i 506.0 | i 507.0 | i 507.4 | i 507.4 | ||||||||||||
Diluted |
i 513.8 | i 515.0 | i 514.2 | i 515.6 |
(1) |
In the fourth quarter of 2021, our life insurance business initially ceded $ i 360 million of premiums associated with certain term life insurance policies under a new reinsurance treaty as part of a life block transaction. |
(2) |
In the fourth quarter of 2021, our life insurance business initially ceded $ i 268 million of certain term life insurance reserves under a new reinsurance treaty as part of a life block transaction. Our life insurance business also completed its annual review of assumptions in the fourth quarter of 2021. This review resulted in higher total benefits and expenses of $ i 87 million
from an unfavorable unlocking in our term universal and universal life insurance products largely attributable to higher pre-COVID-19 |
(3) |
In the fourth quarter of 2021, our life insurance business recorded a net loss of $ i 131 million predominantly driven by an initial loss of $ i 73 million
as a result of ceding certain term life insurance policies as part of a life block transaction, an unfavorable unlocking of $ i 70 million associated with its annual review of assumptions and a DAC impairment of $ i 32 million
as a result of recoverability testing. |
(4) |
On September 20, 2021, we completed the minority IPO of Enact Holdings, which reduced our ownership percentage to i 81.6%, and lowered our available net income by $ i 29 million
in the fourth quarter of 2021. |
Three months ended |
||||||||||||||||
(Amounts in millions, except per share amounts) |
||||||||||||||||
Total revenues (1) |
$ | i 1,809 | $ | i 2,003 | $ | i 2,318 | $ | i 2,154 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total benefits and expenses (2) |
$ | i 1,874 | $ | i 1,925 | $ | i 1,786 | $ | i 1,771 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from continuing operations (1), (2), (3) |
$ | ( i 60 | ) | $ | i 55 | $ | i 402 | $ | i 301 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from discontinued operations, net of taxes (4) |
$ | ( i 12 | ) | $ | ( i 473 | ) | $ | i 34 | $ | ( i 35 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) (1), (2), (3), (4) |
$ | ( i 72 | ) | $ | ( i 418 | ) | $ | i 436 | $ | i 266 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income from continuing operations attributable to noncontrolling interests |
$ |
i — | $ |
i — | $ |
i — | $ |
i — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) from discontinued operations attributable to noncontrolling interests |
$ | ( i 6 | ) | $ | i 23 | $ | i 18 | $ | ( i 1 | ) | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | ( i 66 | ) | $ | ( i 441 | ) | $ | i 418 | $ | i 267 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: |
||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | ( i 60 | ) | $ | i 55 | $ | i 402 | $ | i 301 | |||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
( i 6 | ) | ( i 496 | ) | i 16 | ( i 34 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders |
$ | ( i 66 | ) | $ | ( i 441 | ) | $ | i 418 | $ | i 267 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||
Basic |
$ | ( i 0.12 | ) | $ | i 0.11 | $ | i 0.79 | $ | i 0.60 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | ( i 0.12 | ) | $ | i 0.11 | $ | i 0.79 | $ | i 0.59 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||||||||||
Basic |
$ | ( i 0.13 | ) | $ | ( i 0.87 | ) | $ | i 0.83 | $ | i 0.53 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | ( i 0.13 | ) | $ | ( i 0.86 | ) | $ | i 0.82 | $ | i 0.52 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding: |
||||||||||||||||
Basic |
i 504.3 | i 505.4 | i 505.6 | i 505.6 | ||||||||||||
Diluted (5) |
i 504.3 | i 512.5 | i 511.5 | i 512.5 |
(1) |
In the fourth quarter of 2020, we recorded lower net investment gains as compared to the third quarter of 2020. The higher net investment gains recorded in the third quarter of 2020 related to the sale of available-for-sale |
investment income recorded in the fourth quarter of 2020 largely driven by bond calls and mortgage loan repayments of $ i 40 million and limited partnerships of $ i 38 million. |
(2) |
Given our assumption that COVID-19 has temporarily decreased the number of new claims submitted, our long-term care insurance business strengthened IBNR reserves in the fourth quarter of 2020 by $ i 47 million. Additionally, our long-term care insurance business recorded a $ i 91 million
increase to claim reserves reflecting our assumption that COVID-19 accelerated mortality experience on the most vulnerable claimants, leaving the remaining claim population less likely to terminate compared to the pre-pandemic average population. Our Enact segment recorded an unfavorable reserve adjustment of $ i 37 million primarily due to slowing cure emergence patterns impacting the frequency of claim. Our life insurance business completed its annual review of assumptions in the fourth quarter of 2020. This review resulted
in lower total benefits and expenses of $ i 82 million from a net favorable unlocking in our term universal and universal life insurance products largely attributable to a model refinement in our term universal life insurance product related to persistency and grace period timing and lower projected cost of insurance assessments on our universal life insurance products. In addition, we recorded a DAC impairment of $ i 63 million
in our universal life insurance products due principally to lower future estimated gross profits. |
(3) |
In the fourth quarter of 2020, our long-term care insurance business strengthened its reserves by $ i 109 million after-tax. Our Enact segment strengthened loss reserves by $ i 29 million
after-tax. Our life insurance business recorded a $ i 60 million net favorable unlocking, net of taxes, related to its annual review of assumptions. This favorable unlocking in our life insurance business was partially offset by a DAC impairment of $ i 50 million,
net of taxes, as a result of recoverability testing. For all of the aforementioned transactions, see above under superscript (2) for additional details. |
(4) |
In the fourth quarter of 2020, we recorded a loss from discontinued operations, net of taxes, of $ i 35 million principally attributed to expenses associated with the promissory note owed to AXA and from a $ i 5 million
net loss in Genworth Australia. The expenses associated with the promissory note mostly consisted of foreign currency remeasurement losses of $ i 26 million, unfavorable tax charges of $ i 17 million
and other expenses of $ i 8 million. These expenses were partially offset by derivative hedge gains of $ i 21 million
associated with foreign currency forward contracts entered into to mitigate our exposure to the installment payments to be made in British Pounds in 2022. See note 23 for additional details on discontinued operations. |
(5) |
Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended March 31, 2020, as the inclusion of shares for stock options, RSUs and SARs of i 5.4 million
would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months ended March 31, 2020, dilutive potential weighted-average common shares outstanding would have been i 509.7 million. |
(Amounts in millions) |
Net unrealized investment gains (losses) (1) |
Derivatives qualifying as hedges (2) |
Foreign currency translation and other adjustments |
Total |
||||||||||||
Balances as of January 1, 2021 |
$ | i 2,214 | $ | i 2,211 | $ | i — | $ | i 4,425 | ||||||||
OCI before reclassifications |
( i 313 | ) | ( i 45 | ) | i 148 | ( i 210 | ) | |||||||||
Amounts reclassified from (to) OCI |
( i 51 | ) | ( i 141 | ) | i — | ( i 192 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current period OCI |
( i 364 | ) | ( i 186 | ) | i 148 | ( i 402 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2021 before noncontrolling interests |
i 1,850 | i 2,025 | i 148 | i 4,023 | ||||||||||||
Less: change in OCI attributable to noncontrolling interests |
( i 10 | ) | i — | i 172 | i 162 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2021 |
$ | i 1,860 | $ | i 2,025 | $ | ( i 24 | ) | $ | i 3,861 | |||||||
|
|
|
|
|
|
|
|
(1) |
Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. |
(2) |
See note 5 for additional information. |
(Amounts in millions) |
Net unrealized investment gains (losses) (1) |
Derivatives qualifying as hedges (2) |
Foreign currency translation and other adjustments |
Total |
||||||||||||
Balances as of January 1, 2020 |
$ | i 1,456 | $ | i 2,002 | $ | ( i 25 | ) | $ | i 3,433 | |||||||
OCI before reclassifications |
i 1,132 | i 344 | i 55 | i 1,531 | ||||||||||||
Amounts reclassified from (to) OCI |
( i 374 | ) | ( i 135 | ) | i — | ( i 509 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current period OCI |
i 758 | i 209 | i 55 | i 1,022 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2020 before noncontrolling interests |
i 2,214 | i 2,211 | i 30 | i 4,455 | ||||||||||||
Less: change in OCI attributable to noncontrolling interests |
i — | i — | i 30 | i 30 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2020 |
$ | i 2,214 | $ | i 2,211 | $ | i — | $ | i 4,425 | ||||||||
|
|
|
|
|
|
|
|
(1) |
Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. |
(2) |
See note 5 for additional information. |
(Amounts in millions) |
Net unrealized investment gains (losses) (1) |
Derivatives qualifying as hedges (2) |
Foreign currency translation and other adjustments |
Total |
||||||||||||
Balances as of January 1, 2019 |
$ | i 595 | $ | i 1,781 | $ | ( i 332 | ) | $ | i 2,044 | |||||||
OCI before reclassifications |
i 910 | i 331 | i 487 | i 1,728 | ||||||||||||
Amounts reclassified from (to) OCI |
( i 62 | ) | ( i 110 | ) | i — | ( i 172 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current period OCI |
i 848 | i 221 | i 487 | i 1,556 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2019 before noncontrolling interests |
i 1,443 | i 2,002 | i 155 | i 3,600 | ||||||||||||
Less: change in OCI attributable to noncontrolling interests |
( i 13 | ) | i — | i 180 | i 167 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances as of December 31, 2019 |
$ | i 1,456 | $ | i 2,002 | $ | ( i 25 | ) | $ | i 3,433 | |||||||
|
|
|
|
|
|
|
|
(1) |
Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. |
(2) |
See note 5 for additional information. |
Amount reclassified from accumulated other comprehensive income (loss) |
Affected line item in the consolidated statements of income | |||||||||||||
Years ended December 31, |
||||||||||||||
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||||
Net unrealized investment (gains) losses: |
||||||||||||||
Unrealized (gains) losses on investments (1) |
$ | ( i 65 | ) | $ | ( i 474 | ) | $ | ( i 79 | ) | Net investment (gains) losses | ||||
Income taxes |
i 14 | i 100 | i 17 | Provision for income taxes | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
$ | ( i 51 | ) | $ | ( i 374 | ) | $ | ( i 62 | ) | |||||
|
|
|
|
|
|
|||||||||
Derivatives designated as hedges: |
||||||||||||||
Interest rate swaps hedging assets |
$ | ( i 217 | ) | $ | ( i 196 | ) | $ | ( i 164 | ) | Net investment income | ||||
Interest rate swaps hedging assets |
( i 1 | ) | ( i 12 | ) | ( i 6 | ) | Net investment (gains) losses | |||||||
Interest rate swaps hedging liabilities |
i 1 | i — | i — | Interest expense | ||||||||||
Income taxes |
i 76 | i 73 | i 60 | Provision for income taxes | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
$ | ( i 141 | ) | $ | ( i 135 | ) | $ | ( i 110 | ) | |||||
|
|
|
|
|
|
(1) |
Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
(Amounts in millions) |
||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | ||
Transfers to noncontrolling interests: |
||||
Decrease in Genworth Financial, Inc.’s additional paid-in capital for initial sale of Enact Holdings shares to noncontrolling interests |
( i 167 | ) | ||
|
|
|||
Net transfers to noncontrolling interests |
( i 167 | ) | ||
|
|
|||
Change from net income available to Genworth Financial, Inc.’s common stockholders and transfers to noncontrolling interests |
$ | i 737 | ||
|
|
(Amounts in millions) |
||||
Net cash proceeds |
$ | i 370 | ||
Add: carrying value of noncontrolling interests (1) |
i 657 | |||
|
|
|||
Total adjusted consideration (2) |
i 1,027 | |||
Carrying value of the disposal group before accumulated other comprehensive (income) loss |
i 1,040 | |||
Add: total accumulated other comprehensive (income) loss of disposal group (3) |
i 109 | |||
|
|
|||
Total adjusted carrying value of the disposal group |
i 1,149 | |||
Pre-tax loss on sale |
( i 122 | ) | ||
Tax benefit on sale |
i 122 | |||
|
|
|||
After-tax gain (loss) on sale |
$ | i — | ||
|
|
(1) |
In accordance with accounting guidance on the deconsolidation of a subsidiary or group of assets, the carrying amount of any noncontrolling interests in the subsidiary sold (adjusted to reflect amounts in accumulated other comprehensive income (loss) recognized upon final disposition) is added to the total fair value of the consideration received. |
(2) |
Represents the aggregate of the net cash proceeds received upon sale closing plus the adjusted carrying amount of noncontrolling interests in the subsidiary sold. |
(3) |
Amount consists of $ i 160 million of cumulative losses on foreign currency translation adjustments, partially offset by cumulative unrealized investment gains of $ i 29 million
and deferred tax gains of $ i 22 million. |
(Amounts in millions) |
2021 |
2020 |
||||||
Assets |
||||||||
Investments: |
||||||||
Fixed maturity securities available-for-sale, |
$ | i — | $ | i 2,295 | ||||
Equity securities, at fair value |
i — | i 90 | ||||||
Other invested assets |
i — | i 154 | ||||||
|
|
|
|
|||||
Total investments |
i — | i 2,539 | ||||||
Cash, cash equivalents and restricted cash |
i — | i 95 | ||||||
Accrued investment income |
i — | i 16 | ||||||
Deferred acquisition costs |
i — | i 42 | ||||||
Intangible assets |
i — | i 43 | ||||||
Other assets |
i — | i 40 | ||||||
Deferred tax asset |
i — | i 42 | ||||||
|
|
|
|
|||||
Assets related to discontinued operations |
$ | i — | $ | i 2,817 | ||||
|
|
|
|
|||||
Liabilities |
||||||||
Liability for policy and contract claims |
$ | i — | $ | i 331 | ||||
Unearned premiums |
i — | i 1,193 | ||||||
Other liabilities |
i — | i 104 | ||||||
Long-term borrowings |
i — | i 145 | ||||||
|
|
|
|
|||||
Liabilities related to discontinued operations |
$ | i — | $ | i 1,773 | ||||
|
|
|
|
(Amounts in millions) |
2021 |
2020 |
2019 |
|||||||||
Revenues: |
||||||||||||
Premiums |
$ | i 51 | $ | i 274 | $ | i 312 | ||||||
Net investment income |
i 4 | i 33 | i 56 | |||||||||
Net investment gains (losses) |
( i 5 | ) | i 66 | i 23 | ||||||||
Policy fees and other income |
i — | i 1 | i — | |||||||||
|
|
|
|
|
|
|||||||
Total revenues |
i 50 | i 374 | i 391 | |||||||||
|
|
|
|
|
|
|||||||
Benefits and expenses: |
||||||||||||
Benefits and other changes in policy reserves |
i 11 | i 177 | i 104 | |||||||||
Acquisition and operating expenses, net of deferrals |
i 7 | i 53 | i 53 | |||||||||
Amortization of deferred acquisition costs and intangibles |
i 6 | i 29 | i 33 | |||||||||
Goodwill impairment |
i — | i 5 | i — | |||||||||
Interest expense |
i 1 | i 7 | i 8 | |||||||||
|
|
|
|
|
|
|||||||
Total benefits and expenses |
i 25 | i 271 | i 198 | |||||||||
|
|
|
|
|
|
|||||||
Income before income taxes and gain (loss) on sale (1) |
i 25 | i 103 | i 193 | |||||||||
Provision for income taxes |
i 8 | i 40 | i 56 | |||||||||
|
|
|
|
|
|
|||||||
Income before gain (loss) on sale |
i 17 | i 63 | i 137 | |||||||||
Gain (loss) on sale, net of taxes |
i — | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Income from discontinued operations, net of taxes |
i 17 | i 63 | i 137 | |||||||||
|
|
|
|
|
|
|||||||
Less: net income from discontinued operations attributable to noncontrolling interests |
i 8 | i 34 | i 64 | |||||||||
|
|
|
|
|
|
|||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
$ | i 9 | $ | i 29 | $ | i 73 | ||||||
|
|
|
|
|
|
(1) |
The years ended December 31, 2021, 2020 and 2019 include pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $ i 13 million,
$ i 54 million and $ i 100 million,
respectively. |
(Amounts in millions) |
British Pounds |
U.S. Dollar |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Installment payments due to AXA: |
||||||||||||||||
June 2022: |
||||||||||||||||
Beginning balance |
Ł | i 159 | Ł | i 159 | $ | i 217 | $ | i 217 | ||||||||
Prepayments (1) |
( i 159 | ) | i — | ( i 217 | ) | i — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
i — | i 159 | i — | i 217 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
September 2022: |
||||||||||||||||
Beginning balance |
i 187 | i 158 | i 256 | i 217 | ||||||||||||
Amounts billed as future losses |
i 45 | i 29 | i 61 | i 39 | ||||||||||||
Prepayments (1) |
( i 232 | ) | i — | ( i 324 | ) | i — | ||||||||||
Foreign exchange and other |
i — | i — | i 7 | i — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
i — | i 187 | i — | i 256 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total amounts due under the promissory note |
i — | i 346 | i — | i 473 | ||||||||||||
Future claims: |
||||||||||||||||
Estimated beginning balance |
i 79 | i 107 | i 108 | i 146 | ||||||||||||
Change in estimated future claims |
( i 10 | ) | i 1 | ( i 14 | ) | i 1 | ||||||||||
Less: Amounts billed and included as mandatory prepayments |
( i 45 | ) | ( i 29 | ) | ( i 61 | ) | ( i 39 | ) | ||||||||
Less: Amounts paid |
( i 2 | ) | i — | ( i 3 | ) | i — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Estimated future billings |
i 22 | i 79 | i 30 | i 108 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total amounts due to AXA under the settlement agreement |
Ł | i 22 | Ł | i 425 | $ | i 30 | $ | i 581 | ||||||||
|
|
|
|
|
|
|
|
(1) |
On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD i 483 million ($ i 370
million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately Ł i 176 million ($ i 245
million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale. On September 21, 2021, Genworth Holdings used a portion of the net proceeds from the minority IPO of Enact Holdings to repay the remaining outstanding balance of the secured promissory note of approximately Ł i 215 million
($ i 296 million). |
(Amounts in millions) |
||||
Net cash proceeds |
$ | i 1,736 | ||
Add: carrying value of noncontrolling interests (1) |
i 1,417 | |||
|
|
|||
Total adjusted consideration (2) |
i 3,153 | |||
Carrying value of the disposal group before accumulated other comprehensive loss |
i 3,022 | |||
Add: total accumulated other comprehensive loss of disposal group (3) |
i 325 | |||
|
|
|||
Total adjusted carrying value of the disposal group |
i 3,347 | |||
Pre-tax loss on sale |
( i 194 | ) | ||
Tax benefit on sale |
i 73 | |||
|
|
|||
After-tax loss on sale |
$ | ( i 121 | ) | |
|
|
(1) |
In accordance with accounting guidance on the deconsolidation of a subsidiary or group of assets, the carrying amount of any noncontrolling interests in the subsidiary sold (adjusted to reflect amounts in accumulated other comprehensive income (loss) recognized upon final disposition) is added to the total fair value of the consideration received. |
(2) |
Represents the aggregate of the net cash proceeds received upon sale closing plus the adjusted carrying amount of noncontrolling interests in the subsidiary sold. |
(3) |
Amount consists of cumulative losses on foreign currency translation adjustments of $ i 369 million and deferred tax losses of $ i 71 million,
partially offset by unrealized investment gains of $ i 115 million. |
(Amounts in millions) |
||||
Revenues: |
||||
Premiums |
$ | i 466 | ||
Net investment income |
i 132 | |||
Net investment gains (losses) |
( i 13 | ) | ||
|
|
|||
Total revenues |
i 585 | |||
|
|
|||
Benefits and expenses: |
||||
Benefits and other changes in policy reserves |
i 79 | |||
Acquisition and operating expenses, net of deferrals |
i 64 | |||
Amortization of deferred acquisition costs and intangibles |
i 39 | |||
Interest expense (1) |
i 50 | |||
|
|
|||
Total benefits and expenses |
i 232 | |||
|
|
|||
Income before income taxes and loss on sale (2) |
i 353 | |||
Provision for income taxes |
i 111 | |||
|
|
|||
Income before loss on sale |
i 242 | |||
Loss on sale, net of taxes |
( i 121 | ) | ||
|
|
|||
Income from discontinued operations, net of taxes |
i 121 | |||
|
|
|||
Less: net income from discontinued operations attributable to noncontrolling interests |
i 123 | |||
|
|
|||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders |
$ | ( i 2 | ) | |
|
|
(1) |
Interest on debt assumed by Brookfield and interest on debt that was repaid as a result of the sale of Genworth Canada was allocated and reported in discontinued operations. The Term Loan, owed by Genworth Holdings and secured by GFIH’s ownership interest in Genworth Canada’s outstanding common shares, was repaid in connection with the close of the Genworth Canada sale. Accordingly, interest expense related to the Term Loan of $ i 34 million
was allocated and reported in discontinued operations. |
(2) |
The year ended December 31, 2019 includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $ i 186 million. |
Type of investment |
Amortized cost or cost |
Fair value |
Carrying value |
|||||||||
Fixed maturity securities: |
||||||||||||
Bonds: |
||||||||||||
U.S. government, agencies and authorities |
$ | i 3,368 | $ | i 4,552 | $ | i 4,552 | ||||||
State and political subdivisions |
i 2,982 | i 3,450 | i 3,450 | |||||||||
Non-U.S. government |
i 762 | i 835 | i 835 | |||||||||
Public utilities |
i 5,197 | i 6,032 | i 6,032 | |||||||||
All other corporate bonds |
i 40,302 | i 45,611 | i 45,611 | |||||||||
|
|
|
|
|
|
|||||||
Total fixed maturity securities |
i 52,611 | i 60,480 | i 60,480 | |||||||||
Equity securities |
i 186 | i 198 | i 198 | |||||||||
Commercial mortgage loans, net |
i 6,830 | xxxxx | i 6,830 | |||||||||
Policy loans |
i 2,050 | xxxxx | i 2,050 | |||||||||
Limited partnerships |
i 1,314 | xxxxx | i 1,900 | |||||||||
Other invested assets (1) |
i 440 | xxxxx | i 820 | |||||||||
|
|
|
|
|
|
|||||||
Total investments |
$ | i 63,431 | xxxxx | $ | i 72,278 | |||||||
|
|
|
|
|
|
(1) |
The amount shown in the consolidated balance sheet for other invested assets differs from amortized cost or cost presented, as other invested assets include certain assets with a carrying amount that differs from amortized cost or cost. |
2020 |
||||||||
Assets: |
||||||||
Investments in subsidiaries |
$ | i 15,517 | $ | i 15,358 | ||||
Deferred tax asset |
i 4 | i 13 | ||||||
Other assets |
i 5 | i 2 | ||||||
|
|
|
|
|||||
Total assets |
$ | i 15,526 | $ | i 15,373 | ||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Liabilities: |
||||||||
Other liabilities |
$ | i 4 | $ | i 55 | ||||
Intercompany notes payable |
i 12 | i — | ||||||
|
|
|
|
|||||
Total liabilities |
i 16 | i 55 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
i | i | ||||||
Stockholders’ equity: |
||||||||
Common stock |
i 1 | i 1 | ||||||
Additional paid-in capital |
i 11,858 | i 12,008 | ||||||
Accumulated other comprehensive income (loss) |
i 3,861 | i 4,425 | ||||||
Retained earnings |
i 2,490 | i 1,584 | ||||||
Treasury stock, at cost |
( i 2,700 | ) | ( i 2,700 | ) | ||||
|
|
|
|
|||||
Total Genworth Financial, Inc.’s stockholders’ equity |
i 15,510 | i 15,318 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | i 15,526 | $ | i 15,373 | ||||
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Revenues: |
||||||||||||
Net investment income |
$ | ( i 3 | ) | $ | ( i 3 | ) | $ | ( i 3 | ) | |||
|
|
|
|
|
|
|||||||
Total revenues |
( i 3 | ) | ( i 3 | ) | ( i 3 | ) | ||||||
|
|
|
|
|
|
|||||||
Expenses: |
||||||||||||
Acquisition and operating expenses, net of deferrals |
i 25 | i 31 | i 20 | |||||||||
Interest expense |
( i 1 | ) | i 1 | i 3 | ||||||||
|
|
|
|
|
|
|||||||
Total expenses |
i 24 | i 32 | i 23 | |||||||||
|
|
|
|
|
|
|||||||
Loss before income taxes and equity in income of subsidiaries |
( i 27 | ) | ( i 35 | ) | ( i 26 | ) | ||||||
Benefit from income taxes |
( i 1 | ) | ( i 2 | ) | ( i 3 | ) | ||||||
Equity in income of subsidiaries |
i 930 | i 210 | i 366 | |||||||||
|
|
|
|
|
|
|||||||
Income from continuing operations |
i 904 | i 177 | i 343 | |||||||||
Income from discontinued operations, net of taxes |
i — | i 1 | i — | |||||||||
|
|
|
|
|
|
|||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
Other comprehensive income (loss), net of taxes: |
||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses |
( i 334 | ) | i 764 | i — | ||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses |
i 6 | ( i 6 | ) | i — | ||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired |
i — | i — | i 859 | |||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities |
i — | i — | i 2 | |||||||||
Derivatives qualifying as hedges |
( i 186 | ) | i 209 | i 221 | ||||||||
Foreign currency translation and other adjustments |
( i 24 | ) | i 25 | i 307 | ||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss) |
( i 538 | ) | i 992 | i 1,389 | ||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders |
$ | i 366 | $ | i 1,170 | $ | i 1,732 | ||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2020 |
2019 |
|||||||||||
Cash flows from (used by) operating activities: |
||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | i 904 | $ | i 178 | $ | i 343 | ||||||
Less income from discontinued operations, net of taxes |
i — | ( i 1 | ) | i — | ||||||||
Adjustments to reconcile net income available to Genworth Financial, Inc.’s common stockholders to net cash from (used by) operating activities: |
||||||||||||
Equity in income from subsidiaries |
( i 930 | ) | ( i 210 | ) | ( i 366 | ) | ||||||
Dividends from subsidiaries |
i — | i — | i 250 | |||||||||
Deferred income taxes |
i — | ( i 1 | ) | i 1 | ||||||||
Stock-based compensation expense |
i 40 | i 39 | i 26 | |||||||||
Change in certain assets and liabilities: |
||||||||||||
Accrued investment income and other assets |
( i 1 | ) | i 2 | i — | ||||||||
Current tax liabilities |
( i 5 | ) | ( i 1 | ) | i 16 | |||||||
Other liabilities and other policy-related balances |
( i 13 | ) | i 11 | ( i 17 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash from (used by) operating activities |
( i 5 | ) | i 17 | i 253 | ||||||||
|
|
|
|
|
|
|||||||
Cash flows used by investing activities: |
||||||||||||
Intercompany notes receivable, net |
i — | ( i 10 | ) | ( i 119 | ) | |||||||
Capital contributions paid to subsidiaries |
( i 2 | ) | ( i 2 | ) | ( i 5 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash used by investing activities |
( i 2 | ) | ( i 12 | ) | ( i 124 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash flows from (used by) financing activities: |
||||||||||||
Intercompany notes payable, net |
i 12 | i — | ( i 122 | ) | ||||||||
Other, net |
( i 5 | ) | ( i 5 | ) | ( i 7 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash from (used by) financing activities |
i 7 | ( i 5 | ) | ( i 129 | ) | |||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
i — | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Cash, cash equivalents and restricted cash at beginning of year |
i — | i — | i — | |||||||||
|
|
|
|
|
|
|||||||
Cash, cash equivalents and restricted cash at end of year |
$ | i — | $ | i — | $ | i — | ||||||
|
|
|
|
|
|
Segment |
Deferred Acquisition Costs |
Future Policy Benefits |
Policyholder Account Balances |
Unearned Premiums |
||||||||||||||||
Enact |
$ | i 27 | $ | i — | $ | i — | $ | i 641 | $ | i 246 | ||||||||||
U.S. Life Insurance |
i 1,008 | i 41,526 | i 16,343 | i 11,183 | i 423 | |||||||||||||||
Runoff |
i 111 | i 2 | i 3,011 | i 8 | i 3 | |||||||||||||||
Corporate and Other |
i — | i — | i — | i 9 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | i 1,146 | $ | i 41,528 | $ | i 19,354 | $ | i 11,841 | $ | i 672 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Enact |
$ | i 29 | $ | i — | $ | i — | $ | i 555 | $ | i 307 | ||||||||||
U.S. Life Insurance |
i 1,319 | i 42,693 | i 18,385 | i 10,908 | i 465 | |||||||||||||||
Runoff |
i 139 | i 2 | i 3,118 | i 12 | i 3 | |||||||||||||||
Corporate and Other |
i — | i — | i — | i 11 | i — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | i 1,487 | $ | i 42,695 | $ | i 21,503 | $ | i 11,486 | $ | i 775 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Segment |
Premium Revenue |
Net Investment Income |
Interest Credited and Benefits and Other Changes in Policy Reserves |
Amortization of Deferred Acquisition Costs |
Other Operating Expenses |
Premiums Written |
||||||||||||||||||
Enact |
$ | i 975 | $ | i 141 | $ | i 125 | $ | i 9 | $ | i 287 | $ | i 914 | ||||||||||||
U.S. Life Insurance |
i 2,454 | i 3,029 | i 4,576 | i 318 | i 887 | i 2,419 | ||||||||||||||||||
Runoff |
i — | i 194 | i 189 | i 19 | i 54 | i — | ||||||||||||||||||
Corporate and Other |
i 6 | i 6 | i 1 | i — | i 186 | i 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | i 3,435 | $ | i 3,370 | $ | i 4,891 | $ | i 346 | $ | i 1,414 | $ | i 3,340 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Enact |
$ | i 971 | $ | i 133 | $ | i 381 | $ | i 14 | $ | i 231 | $ | i 894 | ||||||||||||
U.S. Life Insurance |
i 2,858 | i 2,878 | i 5,164 | i 400 | i 643 | i 2,837 | ||||||||||||||||||
Runoff |
i — | i 210 | i 214 | i 23 | i 48 | i — | ||||||||||||||||||
Corporate and Other |
i 7 | i 6 | i 4 | i — | i 234 | i 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | i 3,836 | $ | i 3,227 | $ | i 5,763 | $ | i 437 | $ | i 1,156 | $ | i 3,738 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Enact |
$ | i 856 | $ | i 117 | $ | i 50 | $ | i 9 | $ | i 197 | $ | i 818 | ||||||||||||
U.S. Life Insurance |
i 2,861 | i 2,852 | i 5,398 | i 340 | i 653 | i 2,834 | ||||||||||||||||||
Runoff |
i — | i 187 | i 185 | i 16 | i 54 | i — | ||||||||||||||||||
Corporate and Other |
i 8 | i 8 | i 3 | i — | i 279 | i 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | i 3,725 | $ | i 3,164 | $ | i 5,636 | $ | i 365 | $ | i 1,183 | $ | i 3,660 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Item 9. |
Changes In and Disagreements With Accountants On Accounting and Financial Disclosure |
Item 9A. |
Controls and Procedures |
/s/ Thomas J. McInerney |
President and Chief Executive Officer |
(Principal Executive Officer) |
/s/ Daniel J. Sheehan IV |
Executive Vice President and Chief Financial Officer |
(Principal Financial Officer) |
Item 9B. |
Other Information |
Item 9C. |
Disclosure Regarding Foreign Jurisdiction that Prevent Inspections |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Name |
Age |
Positions | ||
65 | President and Chief Executive Officer | |||
56 | Executive Vice President, Chief Financial Officer and Chief Investment Officer | |||
Rohit Gupta |
47 | President and Chief Executive Officer, Enact | ||
Brian K. Haendiges |
61 | Executive Vice President, U.S. Life Insurance | ||
Melissa Hagerman |
54 | Executive Vice President and Chief Human Resources Officer | ||
Gregory S. Karawan |
57 | Executive Vice President and General Counsel | ||
G. Kent Conrad |
73 | Director, member of Nominating and Corporate Governance and Risk Committees | ||
Karen E. Dyson |
62 | Director, member of Management Development and Compensation and Audit Committees | ||
Jill R. Goodman |
55 | Director, member of Management Development and Compensation and Nominating and Corporate Governance Committees | ||
Melina E. Higgins |
54 | Non-Executive Chair of the Board, member of Audit and Management Development and Compensation Committees | ||
Howard D. Mills, III |
57 | Director, member of Nominating and Corporate Governance and Risk Committees | ||
Debra J. Perry |
70 | Director, member of Audit and Risk Committees | ||
Robert P. Restrepo Jr. |
71 | Director, member of Audit and Management Development and Compensation Committees | ||
Ramsey D. Smith |
54 | Director, member of Nominating and Corporate Governance and Risk Committees |
Item 11. |
Executive Compensation |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
Item 14. |
Principal Accountant Fees and Services |
Item 15. |
Exhibits and Financial Statement Schedules |
a. | Documents filed as part of this report. | |
1. | Financial Statements (see Item 8. Financial Statements and Supplementary Data) | |
Report of KPMG LLP, Independent Registered Public Accounting Firm | ||
Consolidated Balance Sheets as of December 31, 2021 and 2020 | ||
Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019 | ||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019 | ||
Consolidated Statements of Changes in Equity for the years ended December 31, 2021, 2020 and 2019 | ||
Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019 | ||
Notes to Consolidated Financial Statements | ||
2. | Financial Statement Schedules | |
Schedule I—Summary of Investments—Other Than Investments in Related Parties | ||
Schedule II—Financial Statements of Genworth Financial, Inc. (Parent Only) | ||
Schedule III—Supplemental Insurance Information |
Number |
Description | |
31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002—Thomas J. McInerney (filed herewith) | |
31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002—Daniel J. Sheehan IV (filed herewith) | |
32.1 | Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code—Thomas J. McInerney (filed herewith) | |
32.2 | Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code—Daniel J. Sheehan IV (filed herewith) | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | The cover page for the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, has been formatted in Inline XBRL |
§ | Management contract or compensatory plan or arrangement. |
GENWORTH FINANCIAL, INC. | ||
By: | /s/ Thomas J. McInerney | |
Name: |
||
Title: |
President and Chief Executive Officer; Director | |
(Principal Executive Officer) |
President and Chief Executive Officer; Director (Principal Executive Officer) | ||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||
Vice President and Controller (Principal Accounting Officer) | ||
* G. Kent Conrad |
Director | |
* Karen E. Dyson |
Director | |
* Jill R. Goodman |
Director | |
* Howard D. Mills, III |
Director | |
* Debra J. Perry |
Director | |
* Robert P. Restrepo Jr. |
Director | |
* Ramsey D. Smith |
Director | |
* Melina E. Higgins |
Director |
**By | /s/ Thomas J. McInerney | |
Attorney-in-Fact |
This ‘10-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
11/15/36 | ||||
8/15/25 | ||||
2/15/25 | ||||
12/31/23 | ||||
6/30/23 | ||||
1/1/23 | ||||
12/31/22 | ||||
10/1/22 | ||||
9/1/22 | ||||
8/15/22 | ||||
7/8/22 | ||||
6/1/22 | ||||
4/1/22 | 4 | |||
Filed on: | 2/28/22 | |||
2/18/22 | 4 | |||
2/16/22 | ||||
2/9/22 | ||||
2/7/22 | 4 | |||
1/28/22 | SC 13G/A | |||
1/27/22 | ||||
1/15/22 | ||||
1/5/22 | ||||
1/1/22 | 3 | |||
For Period end: | 12/31/21 | 11-K, 13F-HR, 4, 8-K | ||
12/15/21 | ||||
12/7/21 | ||||
12/1/21 | ||||
11/18/21 | ||||
11/15/21 | 4 | |||
10/14/21 | ||||
9/30/21 | 10-Q, 13F-HR, 4 | |||
9/29/21 | ||||
9/24/21 | ||||
9/21/21 | ||||
9/20/21 | 8-K | |||
9/17/21 | ||||
9/16/21 | ||||
9/15/21 | ||||
9/14/21 | ||||
9/9/21 | ||||
8/31/21 | ||||
8/23/21 | ||||
8/13/21 | ||||
8/11/21 | ||||
7/31/21 | ||||
7/27/21 | ||||
7/26/21 | 8-K | |||
7/21/21 | ||||
7/1/21 | 4 | |||
6/30/21 | 10-Q, 13F-HR, 4 | |||
6/29/21 | ||||
6/28/21 | ||||
6/18/21 | ||||
5/26/21 | 4 | |||
5/20/21 | 8-K, DEF 14A | |||
4/27/21 | ||||
4/8/21 | 4 | |||
4/6/21 | 8-K | |||
4/1/21 | 4, DEF 14A, DEFA14A | |||
3/31/21 | 10-Q, 13F-HR, 4 | |||
3/16/21 | 4 | |||
3/3/21 | ||||
3/1/21 | 8-K | |||
2/28/21 | ||||
2/25/21 | ||||
2/16/21 | 8-K | |||
1/14/21 | ||||
1/8/21 | ||||
1/1/21 | ||||
12/31/20 | 10-K, 11-K, 13F-HR, 4 | |||
12/17/20 | ||||
12/4/20 | ||||
9/30/20 | 10-Q, 4, 8-K | |||
8/21/20 | 8-K | |||
7/20/20 | 8-K | |||
7/17/20 | ||||
7/1/20 | 4 | |||
6/30/20 | 10-Q, 4, 8-K | |||
6/29/20 | ||||
6/26/20 | ||||
5/26/20 | 4 | |||
5/13/20 | ||||
4/21/20 | ||||
4/6/20 | ||||
3/31/20 | 10-Q, 4, 8-K | |||
3/27/20 | ||||
3/2/20 | ||||
3/1/20 | ||||
1/31/20 | ||||
1/21/20 | ||||
1/1/20 | ||||
12/31/19 | 10-K, 10-K/A, 11-K, 4 | |||
12/12/19 | 8-K, DEF 14A | |||
10/21/19 | ||||
10/11/19 | ||||
9/11/19 | ||||
8/7/19 | ||||
7/3/19 | ||||
7/1/19 | 8-K | |||
6/14/19 | ||||
5/21/19 | ||||
4/26/19 | ||||
4/8/19 | ||||
3/31/19 | 10-Q | |||
3/29/19 | 4 | |||
3/15/19 | 4, 4/A | |||
3/12/19 | ||||
3/6/19 | ||||
1/29/19 | ||||
1/1/19 | ||||
12/31/18 | 10-K, 10-K/A, 11-K, 4 | |||
12/6/18 | ||||
11/13/18 | ||||
10/29/18 | ||||
9/27/18 | ||||
9/12/18 | ||||
6/28/18 | 8-K | |||
5/24/18 | ||||
3/7/18 | 8-K | |||
1/1/18 | 3 | |||
10/24/17 | ||||
9/22/17 | ||||
3/1/17 | ||||
1/1/17 | ||||
11/14/16 | ||||
9/16/16 | ||||
5/27/16 | ||||
3/28/16 | ||||
3/7/16 | ||||
2/23/16 | 4 | |||
12/31/15 | 10-K, 11-K, 4 | |||
12/1/15 | 8-K | |||
1/1/15 | ||||
10/1/14 | ||||
4/1/13 | 4, 8-K, POSASR, S-8 POS | |||
12/31/12 | 10-K, 11-K, 13F-HR, 4, ARS | |||
12/5/12 | 3, 8-K | |||
1/1/10 | ||||
1/1/06 | ||||
1/1/05 | ||||
5/28/04 | 8-K | |||
9/11/01 | ||||
7/29/99 | ||||
List all Filings |