Exhibit 12
Genworth Financial, Inc.
Statement of Ratio of Income to Fixed Charges
(Dollar amounts in millions)
Years ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Income (loss) from continuing operations before income taxes and accounting changes | $ | 712 | $ | 206 | $ | (53 | ) | $ | (858 | ) | $ | (1,067 | ) | |||||||
Less: income attributable to noncontrolling interests before income taxes | 270 | 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 | $ | 442 | $ | 16 | $ | (252 | ) | $ | (945 | ) | $ | (1,067 | ) | |||||||
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Fixed charges included in income (loss): | ||||||||||||||||||||
Interest expense | $ | 467 | $ | 496 | $ | 454 | $ | 393 | $ | 470 | ||||||||||
Interest portion of rental expense | 15 | 16 | 15 | 14 | 18 | |||||||||||||||
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Subtotal | 482 | 512 | 469 | 407 | 488 | |||||||||||||||
Interest credited to investment contractholders | 775 | 794 | 841 | 984 | 1,293 | |||||||||||||||
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Total fixed charges | $ | 1,257 | $ | 1,306 | $ | 1,310 | $ | 1,391 | $ | 1,781 | ||||||||||
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Income available for fixed changes (including interest credited to investment contractholders) | $ | 1,699 | $ | 1,322 | $ | 1,058 | $ | 446 | $ | 714 | ||||||||||
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Ratio of income to fixed charges (including interest credited to investment contractholders) | 1.35 | 1.01 | 0.81 | 0.32 | 0.40 | |||||||||||||||
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Income (loss) available for fixed changes (excluding interest credited to contractholders) | $ | 924 | $ | 528 | $ | 217 | $ | (538 | ) | $ | (579 | ) | ||||||||
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Ratio of income (loss) to fixed charges (excluding interest credited to investment contractholders) | 1.92 | 1.03 | 0.46 | (1.32 | ) | (1.19 | ) | |||||||||||||
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For the years ended December 31, 2010, 2009 and 2008, our deficiency in income necessary to cover fixed charges was $252 million, $945 million and $1,067 million, respectively.