Exhibit 12
Genworth Financial, Inc.
Statement of Ratio of Income to Fixed Charges
(Dollar amounts in millions)
Years ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Income (loss) from continuing operations before income taxes and accounting changes | $ | 76 | $ | (792 | ) | $ | (942 | ) | $ | 1,606 | $ | 1,853 | ||||||||
Less: income attributable to noncontrolling interests before income taxes | 199 | 87 | — | — | — | |||||||||||||||
Income (loss) from continuing operations before income taxes and accounting changes and excluding income attributable to noncontrolling interests | $ | (123 | ) | $ | (879 | ) | $ | (942 | ) | $ | 1,606 | $ | 1,853 | |||||||
Fixed charges included in income (loss) from continuing operations: | ||||||||||||||||||||
Interest expense | $ | 454 | $ | 393 | $ | 470 | $ | 481 | $ | 364 | ||||||||||
Interest portion of rental expense | 15 | 14 | 18 | 15 | 15 | |||||||||||||||
Subtotal | 469 | 407 | 488 | 496 | 379 | |||||||||||||||
Interest credited to investment contractholders | 841 | 984 | 1,293 | 1,552 | 1,520 | |||||||||||||||
Total fixed charges from continuing operations | 1,310 | 1,391 | 1,781 | 2,048 | 1,899 | |||||||||||||||
Fixed charges included in income from discontinued operations: | ||||||||||||||||||||
Interest expense | — | — | — | — | — | |||||||||||||||
Interest portion of rental expense | — | — | — | — | — | |||||||||||||||
Subtotal | — | — | — | — | — | |||||||||||||||
Interest credited to investment contractholders | — | — | — | 1 | 2 | |||||||||||||||
Total fixed charges from discontinued operations | — | — | — | 1 | 2 | |||||||||||||||
Total fixed charges | $ | 1,310 | $ | 1,391 | $ | 1,781 | $ | 2,049 | $ | 1,901 | ||||||||||
Income (loss) available for fixed charges (including interest credited to investment contractholders) | $ | 1,187 | $ | 512 | $ | 839 | $ | 3,655 | $ | 3,754 | ||||||||||
Ratio of income (loss) to fixed charges (including interest credited to investment contractholders) | 0.91 | 0.37 | 0.47 | 1.78 | 1.97 | |||||||||||||||
Income (loss) available for fixed charges (excluding interest credited to investment contractholders) | $ | 346 | $ | (472 | ) | $ | (454 | ) | $ | 2,102 | $ | 2,232 | ||||||||
Ratio of income (loss) to fixed charges (excluding interest credited to investment contractholders) | 0.74 | (1.16 | ) | (0.93 | ) | 4.24 | 5.89 | |||||||||||||
For the years ended December 31, 2010, 2009 and 2008, our deficiency in income necessary to cover fixed charges was $123 million, $879 million and $942 million, respectively.