Exhibit 12
Genworth Financial, Inc.
Computation Of Ratio Of Income To Fixed Charges
(Dollar amounts in millions)
| Years ended December 31, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Income (loss) from continuing operations before income taxes and accounting changes | $ | 314 | $ | 76 | $ | (792 | ) | $ | (942 | ) | $ | 1,606 | ||||||||
Less: income attributable to noncontrolling interests before income taxes | 190 | 199 | 87 | — | — | |||||||||||||||
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Income (loss) from continuing operations before income taxes and accounting changes and excluding income attributable to noncontrolling interests | $ | 124 | $ | (123 | ) | $ | (879 | ) | $ | (942 | ) | $ | 1,606 | |||||||
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Fixed charges included in income from continuing operations: | ||||||||||||||||||||
Interest expense | $ | 496 | $ | 454 | $ | 393 | $ | 470 | $ | 481 | ||||||||||
Interest portion of rental expense | 16 | 15 | 14 | 18 | 15 | |||||||||||||||
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Subtotal | 512 | 469 | 407 | 488 | 496 | |||||||||||||||
Interest credited to investment contractholders | 794 | 841 | 984 | 1,293 | 1,552 | |||||||||||||||
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Total fixed charges from continuing operations | 1,306 | 1,310 | 1,391 | 1,781 | 2,048 | |||||||||||||||
Fixed charges included in income from discontinued operations: | ||||||||||||||||||||
Interest credited to investment contractholders | — | — | — | — | 1 | |||||||||||||||
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Total fixed charges from discontinued operations | — | — | — | — | 1 | |||||||||||||||
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Total fixed charges | $ | 1,306 | $ | 1,310 | $ | 1,391 | $ | 1,781 | $ | 2,049 | ||||||||||
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Income (loss) available for fixed changes (including interest credited to investment contractholders) | $ | 1,430 | $ | 1,187 | $ | 512 | $ | 839 | $ | 3,655 | ||||||||||
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Ratio of income (loss) to fixed charges (including interest credited to investment contractholders) | 1.09 | 0.91 | 0.37 | 0.47 | 1.78 | |||||||||||||||
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Income (loss) available for fixed changes (excluding interest credited to contractholders) | $ | 636 | $ | 346 | $ | (472 | ) | $ | (454 | ) | $ | 2,102 | ||||||||
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Ratio of income (loss) to fixed charges (excluding interest credited to investment contractholders) | 1.24 | 0.74 | (1.16 | ) | (0.93 | ) | 4.24 | |||||||||||||
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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.