| Statement Of Income Insurance Based Revenue (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Revenues: | ||||
| Premiums | $1,502 | $1,709 | $3,004 | $3,426 |
| Net investment income | 781 | 953 | 1,492 | 1,955 |
| Net investment gains (losses) | (53) | (518) | (823) | (744) |
| Insurance and investment product fees and other | 253 | 254 | 544 | 514 |
| Total revenues | 2,483 | 2,398 | 4,217 | 5,151 |
| Benefits and expenses: | ||||
| Benefits and other changes in policy reserves | 1,492 | 1,386 | 3,000 | 2,787 |
| Interest credited | 263 | 320 | 538 | 665 |
| Acquisition and operating expenses, net of deferrals | 456 | 551 | 897 | 1,079 |
| Amortization of deferred acquisition costs and intangibles | 212 | 209 | 459 | 412 |
| Interest expense | 114 | 110 | 210 | 222 |
| Total benefits and expenses | 2,537 | 2,576 | 5,104 | 5,165 |
| Loss before income taxes | (54) | (178) | (887) | (14) |
| Benefit for income taxes | (4) | (69) | (368) | (21) |
| Net income (loss) | (50) | (109) | (519) | 7 |
| Earnings (loss) per common share: | ||||
| Basic | -0.11 | -0.25 | -1.2 | 0.02 |
| Diluted | -0.11 | -0.25 | -1.2 | 0.02 |
| Weighted-average common shares outstanding: | ||||
| Basic | 433.2 | 432.9 | 433.2 | 433.3 |
| Diluted | 433.2 | 432.9 | 433.2 | 434.8 |
| Supplemental disclosures: | ||||
| Total other-than-temporary impairments | (476) | (552) | (1,073) | (739) |
| Portion of other-than-temporary impairments included in other comprehensive income (loss) | 324 | 0 | 324 | 0 |
| Net other-than-temporary impairments | (152) | (552) | (749) | (739) |
| Other investment gains (losses) | 99 | 34 | (74) | (5) |
| Total net investment gains (losses) | ($53) | ($518) | ($823) | ($744) |
| Statement Of Financial Position Unclassified - Investment Based Operations (USD $) | ||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
| Investments: | ||
| Fixed maturity securities available-for-sale, at fair value | $44,322 | $42,871 |
| Equity securities available-for-sale, at fair value | 252 | 234 |
| Commercial mortgage loans | 7,872 | 8,262 |
| Policy loans | 2,087 | 1,834 |
| Other invested assets | 5,305 | 7,411 |
| Total investments | 59,838 | 60,612 |
| Cash and cash equivalents | 5,374 | 7,328 |
| Accrued investment income | 639 | 736 |
| Deferred acquisition costs | 7,591 | 7,786 |
| Intangible assets | 1,079 | 1,147 |
| Goodwill | 1,325 | 1,316 |
| Reinsurance recoverable | 17,412 | 17,212 |
| Other assets | 967 | 1,000 |
| Deferred tax asset | 996 | 1,037 |
| Separate account assets | 9,605 | 9,215 |
| Total assets | 104,826 | 107,389 |
| Liabilities: | ||
| Future policy benefits | 29,016 | 28,533 |
| Policyholder account balances | 31,356 | 34,702 |
| Liability for policy and contract claims | 6,250 | 5,322 |
| Unearned premiums | 4,734 | 4,734 |
| Other liabilities | 5,787 | 6,860 |
| Non-recourse funding obligations | 3,443 | 3,455 |
| Short-term borrowings | 930 | 1,133 |
| Long-term borrowings | 3,484 | 4,261 |
| Deferred tax liability | 251 | 248 |
| Separate account liabilities | 9,605 | 9,215 |
| Total liabilities | 94,856 | 98,463 |
| Commitments and contingencies | 0 | 0 |
| Stockholders' equity: | ||
| Class A common stock, $0.001 par value; 1.5 billion shares authorized; 522 million shares issued as of June 30, 2009 and December 31, 2008; 433 million shares outstanding as of June 30, 2009 and December 31, 2008 | 1 | 1 |
| Additional paid-in capital | 11,492 | 11,477 |
| Net unrealized investment gains (losses): | ||
| Net unrealized gains (losses) on securities not other-than-temporarily impaired | (2,748) | (4,038) |
| Net unrealized gains (losses) on other-than-temporarily impaired securities | (275) | 0 |
| Net unrealized investment gains (losses) | (3,023) | (4,038) |
| Derivatives qualifying as hedges | 948 | 1,161 |
| Foreign currency translation and other adjustments | 206 | (185) |
| Total accumulated other comprehensive income (loss) | (1,869) | (3,062) |
| Retained earnings | 3,046 | 3,210 |
| Treasury stock, at cost (88 million shares as of June 30, 2009 and December 31, 2008) | (2,700) | (2,700) |
| Total stockholders' equity | 9,970 | 8,926 |
| Total liabilities and stockholders' equity | $104,826 | $107,389 |
| Statement Of Financial Position Unclassified - Investment Based Operations (Parenthetical) (USD $) | ||
| Jun. 30, 2009
| Dec. 31, 2008
| |
| Class A common stock, par value | 0.001 | 0.001 |
| Class A common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
| Class A common stock, shares issued | 522,000,000 | 522,000,000 |
| Class A common stock, shares outstanding | 433,000,000 | 433,000,000 |
| Treasury stock, shares | 88,000,000 | 88,000,000 |
| Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||
| In Millions | Common stock
| Additional paid-in capital
| Accumulated other comprehensive income (loss)
| Retained earnings
| Treasury stock, at cost
| Total
|
| Beginning balance at Dec. 31, 2007 | $1 | $11,461 | $727 | $3,913 | ($2,624) | $13,478 |
| Comprehensive income (loss): | ||||||
| Net income (loss) | 7 | 7 | ||||
| Net unrealized gains (losses) on securities not other-than-temporarily impaired | (1,197) | (1,197) | ||||
| Derivatives qualifying as hedges | 75 | 75 | ||||
| Foreign currency translation and other adjustments | 124 | 124 | ||||
| Acquisition of treasury stock | (76) | (76) | ||||
| Dividends to stockholders | (87) | (87) | ||||
| Stock-based compensation expense and exercises and other | 21 | 21 | ||||
| Ending balance at Jun. 30, 2008 | 1 | 11,482 | (271) | 3,833 | (2,700) | 12,345 |
| Beginning balance at Mar. 31, 2008 | 1 | |||||
| Comprehensive income (loss): | ||||||
| Ending balance at Jun. 30, 2008 | 1 | |||||
| Beginning balance at Dec. 31, 2008 | 1 | 11,477 | (3,062) | 3,210 | (2,700) | 8,926 |
| Cumulative effect of change in accounting, net of taxes and other adjustments | (349) | 355 | 6 | |||
| Comprehensive income (loss): | ||||||
| Net income (loss) | (519) | (519) | ||||
| Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,378 | 1,378 | ||||
| Net unrealized gains (losses) on other-than-temporarily impaired securities | (14) | (14) | ||||
| Derivatives qualifying as hedges | (213) | (213) | ||||
| Foreign currency translation and other adjustments | 391 | 391 | ||||
| Stock-based compensation expense and exercises and other | 15 | 15 | ||||
| Ending balance at Jun. 30, 2009 | 1 | 11,492 | (1,869) | 3,046 | (2,700) | 9,970 |
| Beginning balance at Mar. 31, 2009 | 1 | (2,700) | ||||
| Comprehensive income (loss): | ||||||
| Ending balance at Jun. 30, 2009 | $1 | ($2,700) |
| Statement Of Cash Flows Indirect Investment Based Operations (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash flows from operating activities: | ||
| Net income (loss) | ($519) | $7 |
| Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
| Amortization of fixed maturity discounts and premiums | 106 | 0 |
| Net investment losses (gains) | 823 | 744 |
| Charges assessed to policyholders | (211) | (196) |
| Acquisition costs deferred | (368) | (669) |
| Amortization of deferred acquisition costs and intangibles | 459 | 412 |
| Deferred income taxes | (591) | 54 |
| Net increase (decrease) in trading, held-for-sale investments and derivative instruments | 116 | (117) |
| Stock-based compensation expense | 15 | 15 |
| Change in certain assets and liabilities: | ||
| Accrued investment income and other assets | 30 | (190) |
| Insurance reserves | 1,520 | 2,149 |
| Current tax liabilities | 197 | (175) |
| Other liabilities and other policy-related balances | (208) | 86 |
| Net cash from operating activities | 1,369 | 2,120 |
| Proceeds from maturities and repayments of investments: | ||
| Fixed maturity securities | 1,892 | 2,318 |
| Commercial mortgage loans | 381 | 490 |
| Proceeds from sales of investments: | ||
| Fixed maturity and equity securities | 1,663 | 2,026 |
| Purchases and originations of investments: | ||
| Fixed maturity and equity securities | (2,700) | (3,655) |
| Commercial mortgage loans | 0 | (166) |
| Other invested assets, net | (348) | 3 |
| Policy loans, net | (253) | (155) |
| Payments for businesses purchased, net of cash acquired | 0 | (17) |
| Net cash from investing activities | 635 | 844 |
| Cash flows from financing activities: | ||
| Deposits to universal life and investment contracts | 1,271 | 4,010 |
| Withdrawals from universal life and investment contracts | (4,231) | (4,541) |
| Short-term borrowings and other, net | (330) | (18) |
| Repayment and repurchase of long-term borrowings | (739) | 0 |
| Redemption of non-recourse funding obligations | (12) | 0 |
| Proceeds from the issuance of long-term debt | 0 | 597 |
| Dividends paid to stockholders | 0 | (88) |
| Stock-based compensation awards exercised | 0 | 5 |
| Acquisition of treasury stock | 0 | (76) |
| Net cash from financing activities | (4,041) | (111) |
| Effect of exchange rate changes on cash and cash equivalents | 83 | (83) |
| Net change in cash and cash equivalents | (1,954) | 2,770 |
| Cash and cash equivalents at beginning of period | 7,328 | 3,091 |
| Cash and cash equivalents at end of period | $5,374 | $5,861 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| (1) Formation of Genworth and Basis of Presentation | (1) Formation of Genworth and Basis of Presentation Genworth Financial, Inc. (Genworth) was incorporated in Delaware on October23, 2003. The accompanying condensed financial statements include on a consolidated basis the accounts of Genworth and our affiliate companies in which we hold a majority voting or economic interest, which we refer to as the Company, we, us or our unless the context otherwise requires. All intercompany accounts and transactions have been eliminated in consolidation. We have the following three operating segments: Retirement and Protection. We offer a variety of protection, wealth management, retirement income and institutional products. Our primary protection products include: life, long-term care and Medicare supplement insurance. Additionally, we offer wellness and care coordination services for our long-term care policyholders. Our wealth management and retirement income products include: a variety of managed account programs, financial planning services and mutual funds, fixed and variable deferred and immediate individual annuities and group variable annuities offered through retirement plans. Most of our variable annuities include a guaranteed minimum death benefit (GMDB). Some of our group and individual variable annuity products include guaranteed minimum benefit features such as guaranteed minimum withdrawal benefits (GMWB) and certain types of guaranteed annuitization benefits. Institutional products include: funding agreements, funding agreements backing notes (FABNs) and guaranteed investment contracts (GICs). International. We are a leading provider of mortgage insurance products in Canada, Australia, New Zealand, Mexico and multiple European countries. Our products predominately insure prime-based, individually underwritten residential mortgage loans, also known as flow mortgage insurance. On a limited basis, we also provide mortgage insurance on a structured, or bulk, basis that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. Additionally, we offer services, analytical tools and technology that enable lenders to operate efficiently and manage risk. We also offer payment protection coverages in multiple European countries, Canada and Mexico. Our lifestyle protection insurance products help consumers meet specified payment obligations should they become unable to pay due to accident, illness, involuntary unemployment, disability or death. U.S. Mortgage Insurance. In the U.S., we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans, also known as flow mortgage insurance. We selectively provide mortgage insurance on a structured, or bulk, basis with essentially all of our bulk writings prime-based. Additionally, we offer services, analytical tools and technology that enable lenders to operate efficiently and manage risk. We also have Corporate and Other activities which include debt financing expenses that are incurred at our holding company level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the r |
| (2) Accounting Pronouncements | (2) Accounting Pronouncements Recently Adopted Subsequent Events On June30, 2009, we adopted Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No.165, Subsequent Events. This statement establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued.It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date.The adoption of SFAS No.165 did not have a material impact on our consolidated financial statements. Recognition and Presentation of Other-Than-Temporary Impairments On April1, 2009, we adopted FASB Staff Position (FSP) FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments. This FSP amends the other-than-temporary impairment guidance for debt securities and modifies the presentation and disclosure requirements for other-than-temporary impairment disclosures for debt and equity securities. The FSP amends the requirement for management to positively assert the ability and intent to hold a debt security to recovery to determine whether an other-than-temporary impairment exists and replaces this provision with the assertion that we do not intend to sell or it is not more likely than not that we will be required to sell a security prior to recovery. Additionally, the FSP modifies the presentation of other-than-temporary impairments for certain debt securities to only present the impairment loss in net income (loss) that represents the credit loss associated with the other-than-temporary impairment with the remaining impairment loss being presented in other comprehensive income (loss) (OCI). As of April1, 2009, we recorded a net cumulative effect adjustment of $355 million to retained earnings with an offset to accumulated other comprehensive income (loss) of $349 million. The following summarizes the components for the cumulative effect adjustment: (Amounts in millions) Accumulatedother comprehensive income (loss) Retainedearnings Totalstockholders equity Investment securities $ (588 ) $ 588 $ Adjustment to deferred acquisition costs 33 (26 ) 7 Adjustment to present value of future profits 9 (7 ) 2 Adjustment to sales inducements 5 (5 ) Adjustment to certain benefit reserves 1 1 Provision for income taxes 192 (196 ) (4 ) Net cumulative effect adjustment $ (349 ) $ 355 $ 6 Interim Disclosures About Fair Value of Financial Instruments On April1, 2009, we adopted the FSP FAS 107-1 and APB 28-1, Interim Disclosures About Fair Value of Financial Instruments. This FSP amends the fair value disclosure requirements for certain financial instruments to require disclosures during interim reporting periods of publicly traded entities in addition to requiring them in annual financial statements. The adoption of FSP FAS 107-1 and APB 28-1 did not have a material im |
| (3) Earnings (Loss) Per Share | (3) Earnings (Loss) Per Share Basic and diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted-average basic and diluted shares outstanding for the periods indicated: Threemonths endedJune30, Six months endedJune30, (Amounts in millions, except per share amounts) 2009 (1) 2008 (2) 2009 (1) 2008 (2) Basic earnings (loss) per common share $ (0.11 ) $ (0.25 ) $ (1.20 ) $ 0.02 Diluted earnings (loss) per common share $ (0.11 ) $ (0.25 ) $ (1.20 ) $ 0.02 Weighted-average shares used in basic earnings (loss) per common share calculations 433.2 432.9 433.2 433.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 1.5 Weighted-average shares used in diluted earnings (loss) per common share calculations 433.2 432.9 433.2 434.8 (1) Under SFAS No.128, Earnings per Share, 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 net loss for the three and six months ended June30, 2009, the inclusion of 1.2million and 0.6million, respectively, of shares for stock options, restricted stock units and stock appreciation rights would have been antidilutive to the calculation. If we had not incurred a net loss for the three and six months ended June30, 2009, dilutive potential common shares would have been 434.4million and 433.8million, respectively. (2) Under SFAS No.128, we were required to use basic weighted-average common shares outstanding in the calculation of the 2008 diluted loss per share as a result of our net loss for the three months ended June30, 2008. For the three and six months ended June30, 2008, the inclusion of 2.9million and 3.0million, respectively, of shares for stock options, restricted stock units and stock appreciation rights would have been antidilutive to the calculation. If we had not incurred a net loss for the three months ended June30, 2008, dilutive potential common shares would have been 435.8million for the three months ended June30, 2008 and 436.3million for the six months ended June30, 2008. |
| (4) Investments | (4) Investments Other-Than-Temporary Impairments On Available-For-Sale Securities As of each balance sheet date, we evaluate securities in an unrealized loss position for other-than-temporary impairments. For debt securities, we consider all available information relevant to the collectability of the security, including information about past events, current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. More specifically for mortgage-backed and asset-backed securities, we also utilize performance indicators of the underlying assets including default or delinquency rates, loan to collateral value ratios, third-party credit enhancements, current levels of subordination, vintage and other relevant characteristics of the security or underlying assets to develop our estimate of cash flows. Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. Where possible, this data is benchmarked against third-party sources. Prior to adoption of FSP FAS 115-2 and FAS 124-2 on April1, 2009, we generally recognized an other-than-temporary impairment on debt securities in an unrealized loss position when we did not expect full recovery of value or did not have the intent and ability to hold such securities until they had fully recovered their amortized cost. The recognition of other-than-temporary impairments prior to April1, 2009 represented the entire difference between the amortized cost and fair value with this difference being recorded in net income (loss) as an adjustment to the amortized cost of the security. Beginning on April1, 2009, we recognize other-than-temporary impairments on debt securities in an unrealized loss position when one of the following circumstances exists: we do not expect full recovery of our amortized cost based on the estimate of cash flows expected to be collected, we intend to sell a security or it is more likely than not that we will be required to sell a security prior to recovery. Total other-than-temporary impairments are calculated as the difference between the amortized cost and fair value. For other-than-temporarily impaired securities where we do not intend to sell the security and it is not more likely than not that we will be required to sell the security prior to recovery, total other-than-temporary impairments are adjusted by the portion of other-than-temporary impairments recorded in OCI (non-credit). Net other-than-temporary impairments recorded in net income (loss) represent the credit loss on the other-than-temporarily impaired securities with the offset recorded as an adjustment to the amortized cost to determine the new amortized cost basis of the securities. For other-than-temporary impairments recognized during the period, we present the total other-than-temporary impairments, the portion of other-than-temporary impairments included in OCI and the net other-than-te |
| (5) Derivative Instruments | (5) Derivative Instruments Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce certain of these risks. We have established policies for managing each of these risks, including prohibition on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as derivatives not designated as hedges in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as derivatives designated as hedges, which include both cash flow and fair value hedges. The following table sets forth our positions in derivative instruments as of the dates indicated: Asset derivatives Liability derivatives Balance sheet classification Fair value Balance sheet classification Fair value (Amounts in millions) June30, 2009 December31, 2008 June30, 2009 December31, 2008 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Otherinvested assets $ 188 $ 501 Other liabilities $ 11 $ 54 Inflation indexed swaps Other invested assets Other liabilities 2 Foreign currency swaps Other invested assets 76 120 Other liabilities 1 Total cash flow hedges 264 621 13 55 Fair value hedges: Interest rate swaps Other invested assets 150 231 Other liabilities 19 36 Foreign currency swaps Other invested assets 20 46 Other liabilities Total fair value hedges 170 277 19 36 Total derivatives designated as hedges 434 898 32 91 Derivatives not designated as hedges Interest rate swaps Other invested assets 475 384 Other liabilities 34 95 Interest rate swaptions Other invested assets 161 780 Other liabilities 156 60 Credit default swaps Other invested assets 2 1 Other liabilities 9 27 Equity index options Other invested assets 110 152 Other liabilities Financial futures Other invested assets Other liabilities Inflation indexed swaps Other invested assets Other liabilities 4 Other foreign currency contracts Other invested assets 8 Other liabilities |
| (6) Fair Value Measurements | (6) Fair Value Measurements Assets and liabilities that are reflected in the accompanying consolidated financial statements at fair value are not included in the following disclosure of fair value; such items include cash and cash equivalents, investment securities, separate accounts, securities held as collateral and derivative financial instruments. Other financial assets and liabilitiesthose not carried at fair valueare discussed below. Apart from certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair values must often be determined using models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the financial instrument. The basis on which we estimate fair value is as follows: Commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates. Other invested assets. Based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the related instrument. Primarily represents short-term investments, limited partnerships accounted for under the cost method and bank loans. Borrowings and related instruments. Based on market quotes or comparable market transactions. Investment contracts. Based on expected future cash flows, discounted at current market rates for annuity contracts or institutional products. The following represents the fair value of financial assets and liabilities as of the periods indicated: (Amounts in millions) June30, 2009 December31, 2008 Notional amount Carrying amount Fair value Notional amount Carrying amount Fair value Assets: Commercial mortgage loans $ (1) $ 7,872 $ 7,003 $ (1) $ 8,262 $ 7,536 Other invested assets (1) 1,668 1,656 (1) 1,316 1,326 Liabilities: Borrowingsandrelatedinstruments (2): Short-term borrowings (1) 930 930 (1) 1,133 1,133 Long-term borrowings (1) 3,484 2,236 (1) 4,261 2,012 Non-recourse funding obligations (1) 3,443 1,522 (1) 3,455 2,671 Investment contracts (1) 23,414 22,813 (1) 26,824 24,250 Performance guarantees, principally letters of credit 119 119 Other fir |
| (7) Commitments and Contingencies | (7) Commitments and Contingencies (a) Litigation We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. Plaintiffs in class action and other lawsuits against us may seek indeterminate amounts which may remain unknown for substantial periods of time. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer reputational harm, which could have an adverse effect on our business, financial condition or results of operations. At this time, it is not feasible to predict, nor to determine the ultimate outcomes of all pending investigations and legal proceedings, nor to provide reasonable ranges of potential losses. As previously identified, one of our subsidiaries was named along with several other GIC industry participants as a defendant in several class action and non-class action lawsuits alleging antitrust and other violations involving the sale of GICs to municipalities. The putative class action initiated in December 2008, which case was removed to the United States District Court for Central California, Fresno County Financing Authority, et al. v. AIG Financial Products Corp., et al, has now been fully transferred by the United States Judicial Panel on Multi-District Litigation to the Southern District of New York for consolidation into In re Municipal Derivatives Antitrust Litigation. Also, as previously identified, certain plaintiffs filed a consolidated amended class action complaint, which our subsidiary (along with many other defendants) moved to dismiss. In April 2009, the court dismissed all the claims from that complaint, but provided the plaintiffs twenty days to amend their complaint. In June 2009, plaintiffs filed a Second Consolidated Amended Complaint, which did not name any Genworth entity as a defendant. In addition, as previously disclosed, beginning in July 2008, and ending in December 2008, one of our subsidiaries was named along with several other GIC industry participants as a defendant in several separate California class and non-class action lawsuits brought by municipalities alleging fraud and violations of Californias antitrust laws relating to the sale of GICs to each municipality and seeking monetary damages. These lawsuits were removed to the appropriate federal courts. By April 2009, the Judicial Panel on Multidistrict Litigation had transferred all of these actions to the United States District Court for the Southern District of New York. These actions are still pending. As previously reported, one of our U.S. mortgage insurance subsidiaries is involved in an arbitration proceeding with a lender regarding five bulk transactions (reflecting approximately $531 million of risk in-force) that, until their rescission by us in Dec |
| (8) Borrowings and Other Financings | (8) Borrowings and Other Financings Commercial Paper Facility We have a $1.0 billion commercial paper program whereby notes are offered pursuant to an exemption from registration under the Securities Act of 1933 and may have a maturity of up to 364 days from the date of issue. However, during the second half of 2008, the unfavorable liquidity environment impacted our ability to issue commercial paper and the downgrade of our holding company resulted in us being ineligible to participate in the Federal Reserves Commercial Paper Funding Facility (CPFF) which went into effect in October2008. The $203 million of outstanding commercial paper as of December31, 2008 was held by CPFF until maturity and was fully repaid in February 2009. In the current market environment, we do not anticipate issuing commercial paper. Revolving Credit Facilities We have a $1.0 billion five-year revolving credit facility that matures in May 2012 and a $1.0 billion five-year revolving credit facility that matures in August 2012. These facilities bear variable interest rates based on one-month London Interbank Offered Rate (LIBOR) plus a margin. Lehman Commercial Paper Inc. (LCP) had committed $70 million under the August 2012 credit facility and Lehman Brothers Bank, FSB (Lehman FSB) had committed $70 million under the May 2012 credit facility. On October5, 2008, LCP filed for protection under Chapter 11 of the Federal Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. LCP was unable to fulfill its commitments under the August 2012 credit facility and Lehman FSB declined to fulfill its commitment under the May 2012 credit facility. Therefore, we only have access to $1.9 billion under these facilities. As of June30, 2009 and December31, 2008, we had borrowings of $930 million under these facilities. As of June30, 2009, we utilized $105 million under these facilities primarily for the issuance of letters of credit for the benefit of one of our life insurance subsidiaries. As of December31, 2008, we utilized $184 million under these facilities primarily for the issuance of letters of credit for the benefit of one of our U.S. mortgage insurance subsidiaries. Long-Term Senior Notes During the second quarter of 2009, we repaid principal of $329 million of our 5.23% senior notes that matured in May 2009, plus accrued interest. During the first quarter of 2009, we repurchased principal of $79 million of our 4.75% senior notes, plus accrued interest. During the second quarter of 2009, we repaid the remaining principal of $331 million of our 4.75% senior notes that matured in June 2009, plus accrued interest. We have no additional long-term senior notes maturing until 2011. Non-Recourse Funding Obligations As of June30, 2009, we had $3.4 billion of fixed and floating rate non-recourse funding obligations outstanding backing additional statutory reserves. Of these obligations, $1.7 billion were guaranteed by third-party financial guaranty insurance companies and the interest rates on these obligations are subject to rate resets triggered by negative rating agency actions on the third-party financial guaranty insurance |
| (9) Income Taxes | (9) Income Taxes The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated: Threemonths endedJune30, Six months endedJune30, 2009 2008 2009 2008 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect (5.1 ) 0.3 0.2 (1.1 ) Benefit on tax favored investments (3.5 ) (5.7 ) 3.8 (30.6 ) Effect of foreign operations (18.6 ) (0.1 ) 3.3 43.8 Interest on uncertain tax positions (1.8 ) 9.0 (0.4 ) 100.3 Other, net 1.4 0.3 (0.4 ) 2.6 Effective rate 7.4 % 38.8 % 41.5 % 150.0 % The effective tax rate decreased significantly from the prior year due to favorable examination developments recognized in the prior year, partially offset by the timing of tax benefits related to lower taxed foreign income and tax favored investments recognized in the current year pursuant to Accounting Principles Board (APB) Opinion No. 28, Interim Financial Reporting. |
| (10) Segment Information | (10) Segment Information We conduct our operations in three operating business segments: (1)Retirement and Protection, which includes our life insurance, long-term care insurance, wealth management products and services, retirement income products and institutional products; (2)International, which includes international mortgage and lifestyle protection insurance; and (3)U.S. Mortgage Insurance, which includes mortgage-related products and services that facilitate homeownership by enabling borrowers to buy homes with low-down-payment mortgages. We also have Corporate and Other activities which include interest and other debt financing expenses, other corporate income and expenses not allocated to the segments, the results of non-core businesses that are managed outside of our operating segments and eliminations of inter-segment transactions. We allocate net investment gains (losses) from Corporate and Other activities to our Retirement and Protection segment using an approach based principally upon the investment portfolio established to support the segments products and targeted capital levels. We do not allocate net investment gains (losses) from Corporate and Other activities to our International and U.S. Mortgage Insurance segments, because they have their own separate investment portfolios, and net investment gains (losses) from those portfolios are reflected in the International and U.S. Mortgage Insurance segment results, respectively. We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of net operating income (loss). We define net operating income (loss) as income (loss) from continuing operations excluding after-tax net investment gains (losses) and other adjustments and infrequent or unusual non-operating items. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A significant component of our net investment gains (losses) is the result of impairments, the timing of which can vary significantly depending on market credit cycles. In addition,the size and timing of other investment gains (losses) are often subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Infrequent or unusual non-operating items are also excluded from net operating income (loss) if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, we believe that net operating income (loss), and measures that are derived from or incorporate net operating income (loss), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. However, net operating income (loss) is not a substitute for net income (loss) determined in accordance with U.S |
| (11) Canadian Initial Public Offering | (11) Canadian Initial Public Offering On July7, 2009, Genworth MI Canada Inc. (Genworth Canada), our indirect subsidiary, completed the initial public offering (the Offering) of its common shares. Of the 44.7million common shares of Genworth Canada that were sold in the Offering, 5.1million common shares were sold by Genworth Canada and 39.6million common shares were sold by Brookfield Life Assurance Company Limited (the Selling Shareholder), our indirect wholly-owned subsidiary. Following completion of the Offering, we beneficially owned 61.8% of the common shares of Genworth Canada. In addition, the Selling Shareholder granted to the underwriters of the Offering an option (the Over-Allotment Option), that was exercisable for a period of 30 days after the closing of the Offering, to purchase up to an additional 6.7million common shares from the Selling Shareholder. On July 30, 2009, 5.0million common shares were sold by the Selling Shareholder pursuant to the Over-Allotment Option. Following the exercise and closing of the Over-Allotment Option, we beneficially own 57.5% of the common shares of Genworth Canada. At an exchange rate of 0.88 United States dollar to 1 Canadian dollar, the Offering and the Over-Allotment Option generated net proceeds of approximately US$705 million (net of expenses directly related to the transaction, including underwriting commissions, taxes and other items) which excludes US$22 million remaining in Genworth Canada. |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 28, 2009
| Jun. 30, 2008
| |
| Entity [Text Block] | |||
| Trading Symbol | GNW | ||
| Entity Registrant Name | GENWORTH FINANCIAL INC | ||
| Entity Central Index Key | 0001276520 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 433,211,005 | ||
| Entity Public Float | $7,700,000,000 |
