2. Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” or
words of similar meaning and include, but are not limited to, statements regarding the outlook for
the company’s future business and financial performance. Forward-looking statements are based
on management’s current expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes
and results may differ materially due to global political, economic, business, competitive, market,
regulatory and other factors, including those discussed in the Appendix and in the risk factors
section of the company’s Form 10-K filed with the SEC on February 28, 2007, the company’s Form
8-K filed with the SEC on April 16, 2007 and the company’s Form 10-Q filed with the SEC on
October 26, 2007. The company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments or otherwise.
Non-GAAP and Selected Operating Performance Measures
For important information regarding the use of non-GAAP and selected operating performance
measures, see our Fourth Quarter 2007 Financial Supplement which can be found on our website
at genworth.com.
This presentation should be used in conjunction with the accompanying audio or call transcript.
Investor Update U.S. Mortgage Insurance – February 8, 2008 1
3. Agenda
Key Definitions & Factors Relating To Loss Development
Delinquency Rate
Claims Frequency
Past Industry Experience
Exposure & Severity
Claim Size
The Role Of Captive Reinsurance in Providing Protection
Extreme Stress Scenarios To Assess Potential Impact on Book Value
Investor Update U.S. Mortgage Insurance – February 8, 2008 2
4. How Do You Measure Delinquency Rate?
Delinquency Rate Definition of a “Cure”
Prior Delinquency That:
Current # Delinquencies
– Is Now Paid Current
Remaining # Policies in Force Or
– Has Been Refinanced
Current Period Metric Or
– Associated Property Has Been Sold
Leading Indicator of Claims
Reserves For Delinquencies
Frequency
Determined On An Individual Loan
Leading Indicator of Potential
Basis, Driven By:
Captive Reinsurance Attachment/
Benefit Number of Delinquencies
Aging of Delinquencies
A Delinquency Cures or Moves To
Loan Amounts
Claim
Claim Experience/Trends
Policy Lapse Increases Magnitude
Delinquency Rate Is Sometimes Referred to as Default Rate.
Investor Update U.S. Mortgage Insurance – February 8, 2008 3
5. How Do You Measure Claims Frequency?
Claims Frequency Paid Claims
Delinquency Fully Reserved At Time
Lifetime # Claims Paid
of Claim Payment (on Average)
Original # Policies In Force
Average Claim Driven By:
Lifetime Metric
Loan Amount
Cumulative Home Price Change
Can Impact Claims Frequency
Coverage
Positively or Negatively
Severity
Claims Frequency, Plus Average
Claim Size, Drive Captive
Reinsurance Cash Benefit
Lapse Decreases Future Claims
Investor Update U.S. Mortgage Insurance – February 8, 2008 4
6. How Does Lapse Impact Claims Frequency?
Lifetime Claims Frequency Based on Original Policies in Force
Lapsed Policies Cannot Become A Future Claim
Therefore, Remaining Policies Drive Lifetime Claims Frequency
of Original Book
2005 Book Year Illustrative Example
Claims Frequency
Policies In Ever To Lifetime
Illustrative Claims Frequency on
Force Date
Scenario Remaining Policies Would
12/31/07 12/31/07
Have to Perform at an
Total Original Policies 155K 1.0 10.0
Extreme Level for the Total
Book to Reach 10.0 on a
Less: Lapsed Policies (51K) 2.9 2.9
(Includes Paid Claims)
Lifetime Basis.
Remaining Policies 104K 0.0 13.5
Claims Frequency Represents Claims per 100 Loans.
Investor Update U.S. Mortgage Insurance – February 8, 2008 5
7. Mortgage Insurance Industry Experience
Two Housing Recessions Oil Patch Southern California
Materially Higher Interest 15 15
Claims Frequency
Claims Frequency
Rates ~10% 30-Yr FRM
10 10
Driven By Regional GDP /
National
National
5 5
Unemployment
0 0
Portfolio Concentration ~20% ‘79 ‘81 ‘83 ‘85 ‘87 ‘88 ‘90 ‘92 ‘94 ‘96
Book Year Book Year
Unemployment: Regional 10% 10%
National 7% 7%
Home Price Change*: Regional (9%) (18%)
National +17% +23%
Severity 110% 108%
Estimated based on Economy.com Interest Rates, Unemployment, GDP and Home Price Changes; MICA Industry Claims Rate; Genworth’s Severity
Oil Patch Region Includes TX, WY, OK, LA, CO and AK
* Regional and National Home Price Changes represent cumulative changes during calendar year period: 1985-1988 Oil Patch, 1991-1996 Southern California
Industry Changes Since Late 80’s
Impact Assessment
Increased Prices +
Adopted FICO Credit Scores For Underwriting +
GSE’s Adopted Use of Automated Underwriting +
Growth of Higher Loan-To-Value Loans, Alt-A, and Sub-prime Products -
Investor Update U.S. Mortgage Insurance – February 8, 2008 6
8. Historical Experience Vs. Portfolio Scenarios
Risk In Force
Historical Claims Frequency
Specific Book Years Claims Frequency
Oil Patch California
’80-’84 ’89 – ’92
Performing 70-75%
National (Total) 11 5
Other States 9 3
Regional (Under-Performing) 25 19
GNW Claims Frequency Illustrations
If One Assumes: Claims Frequency
Total Portfolio 7 10 15 20
Under-
25-30% Performing Segment 5 6 8 10
Performing
Then Remaining Must Be:
Portfolio Mix Under-Performing Segment 12 20 32 44
Under-Performing Segment is Selected Product, Geographical and Book Year Combinations Where Ever To Date Actual Loss Ratio Performance Exceeds Ever To Date
Pricing Expectations. Select Geographies Include CA, FL, AZ, NV and Great Lakes, Select Products Include Alt-A, A Minus and Sub-prime.
Claims Frequency Represents Claims per 100 Loans.
Oil Patch Region Includes TX, WY, OK, LA, CO, AK
Investor Update U.S. Mortgage Insurance – February 8, 2008 7
9. Exposure & Severity Definitions
Lesser of “Maximum Exposure” or “Loss on Sale of Property”
Claim Payment
(Unpaid Principal Balance + Claimable Expenses) x Coverage Percent
Maximum
Exposure Claimable Expenses Mortgage Insurance Coverage
Option Accrued Interest (Typically Coverage
Loan to Value
65% of Total Claimable)
100% 35%
Legal Fees
95% 30%
Property Taxes
90% 25%
Hazard Insurance, etc.
Property Sale Proceeds
- Unpaid Principal Balance
Loss On Sale
- Claimable Expenses
Option
- Sales Costs
Loss On Property Sale
Claim Payment
Severity
Coverage Percent x Unpaid Principal Balance (MI Coverage Amount)
Investor Update U.S. Mortgage Insurance – February 8, 2008 8
10. The Influence of Larger Loan Balances
Average Loan Balance increasing Average Claim Payments Increasing
($000’s) ($000’s)
164 35
146 28
135 26
2005 2006 2007
2005 2006 2007
Based on Primary (Flow and Bulk) Insurance In Force
Cumulative Home Price Appreciation Increasing Loan Balances
Increased Portion Of Claims From Higher Priced States Will
Tend To Drive Up Average Claim Payments
Higher Priced States Include California, Florida, Arizona and Nevada
Investor Update U.S. Mortgage Insurance – February 8, 2008 9
11. Loan Balances By Region
Average Loan Balance Key Factors
($000’s)
Regions 2005 2006 2007
Significant Variance By Region
Southeast 131 143 155
South Central 125 133 147
Northeast 140 148 165 Product Mix Changes
North Central 135 140 149
Pacific 176 216 268
Regional Shift in Claims
Great Lakes 116 118 122
Plains 107 111 121
Mid-Atlantic 153 171 199
New England 180 194 210
Total 135 146 164
Average Loan Balance Is The Principal Driver of Average Claim Payment
Average Loan Balances Shown Reflect Primary Loan Balances as of Year End.
Investor Update U.S. Mortgage Insurance – February 8, 2008 10
12. Claim Payment & 100% Severity Scenarios
Assumptions
Original Property Value $111,100
Home Price Decline ~(13)%
Loan To Value
90% 95%
Unpaid Principal Balance $100,000 $105,600
Claimable Expenses (@ 15%) 15,000 15,800
$115,000 $121,400
Higher Loan Balances
Coverage x 25% x 30%
and Higher Coverage
Maximum MI Exposure $28,800 $36,400 Increases MI Exposure
Proceeds From Sale (87%) $96,700 $96,700
Sales Costs (7%) (6,800) (6,800)
Net Proceed From Sale $89,900 $89,900
Loss on Sale $25,100 $31,500
MI Claim Payment (Lesser of $25,100 $31,500 Higher Loan To Value
or )
Reduces Severity But
MI Coverage Amount $25,000 $31,700
Increases Average
99%
Severity ( Divided by ) 100% Claim
Investor Update U.S. Mortgage Insurance – February 8, 2008 11
13. Claim Payment & 115% Severity Scenarios
Assumptions
Original Property Value $111,100
Factors Keeping Severity
Home Price Decline ~(25)%
Under 115%
Loan To Value
Loan Balance Drives Severity
90% 95%
of 100%
Unpaid Principal Balance $100,000 $105,600
Additional 15% Limited By:
Claimable Expenses (@ 15%) 15,000 15,800
$115,000 $121,400 Foreclosure Cycle Time
(Typically 12 Months)
Coverage x 25% x 30%
Maximum MI Exposure $28,800 $36,400 Predictable Expenses
Active Loss Mitigation
Proceeds From Sale (75%) $83,300 $83,300
Sales Costs (7%) (5,800) (5,800)
Net Proceed From Sale $77,500 $77,500
Loss on Sale $37,500 $43,900
MI Claim Payment (Lesser of $28,800 $36,400
or )
Maximum MI Exposure Limits
MI Coverage Amount $25,000 $31,700 Loss
115%
Severity ( Divided by ) 115%
Investor Update U.S. Mortgage Insurance – February 8, 2008 12
14. What Severity Have We Seen?
Factors Impacting Severity Genworth Severity By Region
% Flow RIF
Claim Factors 4Q07
Regions 2005 2006 2007
Claimable Expense
25%
Southeast 96% 92% 95%
Lower Home Prices
17%
South Central 86% 88% 93%
13%
Northeast 109% 104% 100%
Offsetting Factors
12%
North Central 94% 96% 98%
Borrower Equity
9%
Pacific 71% 75% 89%
Total Home Price Appreciation
9%
Great Lakes 109% 107% 109%
Coverage Level
6%
Plains 92% 93% 96%
Regional Variation 4%
Mid-Atlantic 92% 88% 93%
4%
New England 85% 90% 91%
Flow Portfolio
100%
Severity 96% 96% 99%
Severity Based on Simple Average of Claim Payment Experience.
Investor Update U.S. Mortgage Insurance – February 8, 2008 13
15. Lender Captive Reinsurance Protection
63% GNW Flow Portfolio Has Lender Captive Reinsurance Coverage
– Protects Downside Risk
Written on a “Book Year” Basis By Lender
Attachment Points Are % of a Book Year’s Original Risk In Force
Reinsurance Premiums Deposited in 3rd Party Trust
40% Cede Excess of Loss Example 25% Cede Excess of Loss Example
Premiums Losses Premiums Losses
Lender 25%
Remaining Remaining
Lender 40% GNW GNW
Losses Losses
2nd Loss 2nd Loss
Lender Lender
(4-14 Claims Layer)
60% 75% (5-10 Claims Layer)
GNW GNW
1st Loss (0-4 Claims Layer) 1st Loss (0-5 Claims Layer)
GNW GNW
Captive Reinsurance Liability Limited to Funds in Trust, Not Subject to Lender Bankruptcy.
Trust Balance Impacted by Future Premiums Received, Payment of Claims and Dividends.
Funds and % of GNW Portfolio in Captive Reinsurance Arrangements As of 12/31/07.
Investor Update U.S. Mortgage Insurance – February 8, 2008 14
16. Lender Captive Reinsurance Trusts
Structural Example for
Individual Lender
Funds in Trust are Fungible
2010 &
Beyond - Book Years Cross Collateralized
2009
- Trust Balance Contributions from Ceded Premiums
2008 on Old and New Books
2007 - Minimum Required Funding at Risk to Capital of 10:1
- Dividends Allowed At Risk to Capital of 5:1
2006
- $880MM Funds In Trust as of 12/31/07
2005
High Quality Trust Investments
2004 &
Prior - ~97% Investments Are Government Issued or Rated
AA or Higher
Funds Held In 3rd
Party Trust
Captive Reinsurance Trust Set Up for Each Lender; Balances Secures that Lender’s Risk Only
Captive Reinsurance Liability Limited to Funds in Trust, Not Subject to Lender Bankruptcy
Trust Balance Impacted by Future Premiums Received, Payment of Claims and Dividend. Assumes Ongoing Captive Reinsurance on Substantially Similar Terms.
Trust Investments – Portfolio Ratings as of 12/31/07
Investor Update U.S. Mortgage Insurance – February 8, 2008 15
17. Captive Reinsurance Attachment Progress
Book Year In Aggregate Book Year Observations
3Q07 4Q07
($MM)
2005
Sum of Reinsurance Attachment Points $125
Aggregate Book Year Analysis
Ever to Date Incurred Losses $48 $61
Provided To Illustrate
% To Attachment 38% 49% Directional Progression Toward
Attachment
2006
Actual Benefits Will Vary By
Sum of Reinsurance Attachment Points $173 Individual Reinsurance Contract
Ever to Date Incurred Losses $68 $101
% To Attachment 39% 58%
Quarterly Captive Benefits $1
2007
Sum of Reinsurance Attachment Points $198 $289
Ever to Date Incurred Losses $16 $56
% To Attachment 8% 19%
Additional Details By Book Year in Appendix
Figures Are Presented in Aggregate For All Trusts, and excludes Quota Share Captive Arrangement data.
Incurred Losses = Change in Reserves + Paid Claims
Investor Update U.S. Mortgage Insurance – February 8, 2008 16
18. 2006 Book Year Example
Original 2006 Book Year
$4.3B Risk In Force With Captive Reinsurance Coverage
$173MM Losses = Sum of All Attachment Points
46 Lender Captives Comprise Total – Actual Attachment Will Vary By Lender
As of 4Q07
% Progression to RIF Ever to Date
Specific Lender Remaining Incurred Losses
Attachment Point ($B) ($MM)
0 – 50% .7 10
50 – 75% 1.8 55
75 – 100% .8 31 Includes ~$1MM of Captive
Reinsurance Benefit
100%+ (Captive Benefit) .1 5
3.4 $101
58% Progression to Aggregate Attachment Point
Information excludes Quota Share Captive Arrangement data.
Additional Book Years Included in Appendix.
Investor Update U.S. Mortgage Insurance – February 8, 2008 17
19. Selective Bulk Participation
Characteristics Downside Protection RIF
~720 Average FICO Primary MI On Loans 80%+ LTV
GSE Alt-A $0.4B
79% Average LTV 97% With Stop Loss
85% With Deductibles
720+ Average FICO Primary MI On Loans 80%+ LTV
Portfolio $0.6B
76% Average LTV 100% With Stop Loss
Transactions 97% Full Documentation 27% With Deductibles
Federal Home 740+ Average FICO Primary MI On Loans 80%+ LTV
Loan Bank 67% Average LTV 77% With Stop Loss $0.5B
/Other 82% With Deductibles
Did Not Participate In Sub-Prime Bulk
Risk In Force (RIF) Associated With Bulk NIW Is Lower Than a Corresponding Amount Of Flow NIW Due To The Structure Of The Coverage (Stop
Losses And Deductibles). The Effective Risk Is Lower Due To The Order In Which Losses Are Absorbed; 1) Borrower Equity, 2) Primary MI Coverage
For LTVs > 80% (Coverage Effectively Down To 65%), 3) Deductibles, And Finally, 4) Genworth's Bulk Policy Which Is Typically Further Limited By
Aggregate Stop Losses.
Investor Update U.S. Mortgage Insurance – February 8, 2008 18
20. Scenario Analysis – Key Concepts
$2.6 Billion U.S. Mortgage Insurance Book Value As of 12/31/07
Standard Assumptions:
- Strong Revenue Growth 14% CAGR
- Persistency 75-80%
- $3 Billion Investment Assets ~ 4% After-tax Yield
If 2008 Losses Accelerate, Captive Reinsurance Benefits Are
Recognized Sooner
Investor Update U.S. Mortgage Insurance – February 8, 2008 19
21. A 5-Year View
Key Assumptions Book Value Profile
($B) @ 100% Severity $3.9+
Existing Portfolio
$0.7
Claim Frequency Expectation for Every 100 Loans
$0.5
Claim Frequency Captives New
Portfolio $2.6
Attach?
Ever-To-Date Lifetime
Business
Invest.
’04 & Prior No
1.4 2
Income
Existing
’05 – ’07 Yes
0.3 8 Business
Underwriting
’08 & Forward No
- 4
Margin
12/31/07 12/31/12E
Performing Well 5
2005-2007 Books @ 115% Severity:
Under-Performing 13
$.1B Additional Losses By 2012
Book Value Progression
$3.9+
($B) @ 100% Severity
$2.6 $2.5-2.6
Company Estimates; Captive Attachment Based on Aggregate Analysis – Actual Results
Will Vary By Lender
Lifetime Loss Ratio Reflects Weighted Average Lifetime Expected Loss Ratio For Total
Portfolio
Existing Business and Investment Income Are Net of Income Taxes
Existing Business Includes After Tax Premium From International Support Arrangements
Projected Book Value Excludes Impact of Dividends From Our U.S. Mortgage Insurance
Subsidiaries to Genworth
2007 2008E 2009E 2010E 2011E 2012E
Investor Update U.S. Mortgage Insurance – February 8, 2008 20
22. Scenarios:Exhaust Captives or Eliminate Book Value
Exhaust Captive Coverage U.S. Mortgage Ins. Book Value To 0
Claim Frequency Assumptions for Every 100 Loans Claim Frequency Assumptions for Every 100 Loans
Claim Frequency Claim Frequency
Captives Captives
Portfolio Portfolio
Attach? Attach?
Ever-To-Date Ever-To-Date
Lifetime Lifetime
’04 & Prior ’04 & Prior
No No
1.4 1.4
2 2
’05 – ’07 ’05 – ’07
Yes Yes
0.3 0.3
15 40
’08 & Forward ’08 & Forward
No No
- -
4 4
Performing 8 Performing 10
Under-Performing 25 Under-Performing 81
Book Value Profile
$2.9+
($B) @ 100% Severity
$0.6
$(0.3)
$2.6 New
Business
Invest.
Existing Income
Business
Underwriting
Margin
12/31/07 12/31/12
2005-2007 Books @ 115% Severity: Company Estimates; Captive Attachment Based on Aggregate Analysis – Actual Results Will Vary By Lender
Existing Business and Investment Income Are Net of Income Taxes
$.2B Additional Losses Incurred By 2012 Existing Business Includes After Tax Premium From International Support Arrangements
Projected Book Value Excludes Impact of Dividends From U.S. Mortgage Insurance Subsidiaries to Genworth
Investor Update U.S. Mortgage Insurance – February 8, 2008 21
23. Summary - Looking Ahead
Captive Reinsurance Mitigates Downside Exposure
2008 Looks To Be The Inflection Point
Accelerated Stress Scenarios in 2008; Improves 2009 Outlook
Book Value Supported – With An Accretion Opportunity
Investor Update U.S. Mortgage Insurance – February 8, 2008 22
26. Captive Reinsurance - Disclosure
Captive Disclosure Q4 2007
Original Book 4Q07
Progression
Sum of Loss to Additional Losses Aggregate %
Ever to Date
Attachment Attachment to
Incurred Losses to Reach Aggregate
RIF ($B) Points ($MM) Point Current RIF ($B) Attachment ($MM) Attachment
Book Year ($MM)
2005 Total 3.0 125 2.0 61 64 49%
0.8 16
0 -50%
0.8 28
50 -75%
0.4 15
75-99%
0.0 2
Attached
2006 Total 4.3 173 3.4 101 72 58%
0.7 10
0 -50%
1.8 55
50 -75%
0.8 31
75-99%
0.1 5
Attached
2007 Total 7.2 289 6.9 56 233 19%
6.9 56
0 -50%
0.0 0
50 -75%
0.0 0
75-99%
0.0 0
Attached
Captive Benefit in Quarter ($MM) 1
Aggregate Book Year Analysis Provided To Illustrate Directional Progression Toward Attachment
Data Presented in Aggregate For All Trusts. Actual Trust Attachment Will Vary By Individual Lender Contract.
Incurred Losses = Change in Reserves + Paid Claims
Information excludes Quota Share Captive Arrangement data.
Investor Update U.S. Mortgage Insurance – February 8, 2008 25
27. U.S. Portfolio – Delinquency Rates
($B)
Total FICO > 660 FICO 620 - 659 FICO < 620
Primary Risk In Force 3Q 07 4Q 07 3Q 07 4Q 07 3Q 07 4Q 07 3Q 07 4Q 07
$31.3
$28.1 $2.9
$6.4
$22.1
Primary Risk In Force $19.7 $5.9 $2.5
3.4% 4.3%
Default Rate 1.9% 6.3% 10.5% 12.8%
7.5%
2.5%
$12.1
$8.1 $2.4 $1.3
2007 Policy Year $5.5 $8.5 $1.7 $0.9
1.4% 2.8%
Default Rate 0.9% 1.7% 5.0%
3.8% 9.4%
1.7%
$6.0 $5.9 $0.6
2006 Policy Year $4.2 $1.2 $0.6
$1.2
$4.1
3.8%
Default Rate 2.2% 6.0% 12.6%
5.4% 15.4%
8.3%
3.6%
$4.4 $4.2 $0.9 $0.3
2005 Policy Year $3.1 $0.9 $0.4
$3.0
4.0%
Default Rate 2.4% 6.6% 12.2%
5.2% 8.5% 14.4%
3.2%
$9.1
$9.6 $0.7
2004 & Prior Policy Years $6.8 $2.1 $0.7
$6.5 $1.9
4.3% 4.7%
Default Rate 2.2% 8.8% 14.0%
2.4% 9.5% 15.3%
$26.2 $29.4
Fixed Rate $18.2 $5.6 $2.4 $2.7
$20.6 $6.1
3.3%
Default Rate 1.7% 6.2% 10.3% 12.5%
4.0% 2.1% 7.2%
$1.9 $1.9
ARMs $1.5 $0.3 $0.1
$1.5 $0.3 $0.1
4.1% 7.2%
Default Rate 5.9%
3.0% 9.0% 17.1%
12.0% 23.2%
$7.9 $2.3 $1.2
$8.8
LTV > 95% $4.7 $2.1 $1.1
$5.4
4.6% 5.8%
Default Rate 2.1% 6.4% 11.6%
2.6% 8.0% 15.3%
$1.9 $1.9 $0.3 $0.1
Alt-A $1.5 $0.3 $0.1
$1.6
4.1% 6.2%
Default Rate 3.3% 7.9% 13.2%
5.1% 11.7% 18.2%
$3.6 $3.3
$4.0 $0.5
Interest Only & Option ARMs $2.9 $0.5 $0.2 $0.2
3.1% 5.0%
Default Rate 2.6% 5.7% 9.9%
9.2%
5.6% 16.8%
= Significant Increases in Delinquency Rates
Loans With Unknown FICO Scores Are Included in the FICO 620 – 659 Category
Delinquency Rate Represents Number of Lender Reported Delinquencies Divided By Number of Remaining Policies Consistent With Mortgage Insurance Industry Practices
GNW Alt-A Consists of Loans With Reduced Documentation or Verification of Income or Assets And a Higher Historical And Expected Default Rate Than Standard Documentation Loans.
Investor Update U.S. Mortgage Insurance – February 8, 2008 26
28. Product Actions Taken For 2008
Flow New Insurance Written
Products Not Insured By Genworth
Sub-Prime Bulk Alt-A >95% LTV
100%
Sub-Prime 2%
Product Exits A-Minus 5%
1%
Alt-A
Alt-A > 90% LTV, < 660 FICO Prime 12%
A Minus Above 95% LTV, < 575 FICO > 95% LTV
100 LTV < 620 FICO And Interest Only
Guideline Restrictions
Prime
Primary & 2nd, Purch. & Rate Term
Alt-A 80%
≤ 95% LTV
A Minus Primary Only
100 LTV 95% LTV in 85 Declining Markets
Price Increases
Alt-A ~43% in 660 – 699 FICO Bucket
A Minus ~18% Price Increase 2008E
100 LTV ~50% Increase for 56% of NIW
Genworth Alt-A Consists Of Loans With Reduced Documentation Or Verification Of Income Or Assets And A Higher Historical And
Expected Default Rate Than Standard Documentation Loans
Investor Update U.S. Mortgage Insurance – February 8, 2008 27
29. Cautionary note regarding forward-looking statements
This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,”
“estimates,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future
business and financial performance. Forward-looking statements are based on management’s current expectations and assumptions,
which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and
results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks,
including the following:
• Risks relating to our businesses, including interest rate fluctuations, downturns and volatility in equity and credit markets, defaults in
portfolio securities, downgrades in our financial strength and credit ratings, insufficiency of reserves, legal constraints on dividend
distributions by subsidiaries, competition, availability and adequacy of reinsurance, defaults by counterparties, regulatory restrictions
on our operations and changes in applicable laws and regulations, legal or regulatory investigations or actions, political or economic
instability, the failure or any compromise of the security of our computer systems, and the occurrence of natural or man-made
disasters or a pandemic disease;
• Risks relating to our U.S. Mortgage Insurance segment, including the influence of Fannie Mae, Freddie Mac and a small number of
large mortgage lenders and investors, decreases in the volume of high loan-to-value mortgage originations or increases in mortgage
insurance cancellations, increases in the use of simultaneous second mortgages and other alternatives to private mortgage insurance
and reductions by lenders in the level of coverage they select, unexpected increases in mortgage insurance default rates or severity of
defaults, deterioration in economic conditions or a decline in home price appreciation, increases in the use of reinsurance with
reinsurance companies affiliated with our mortgage lending customers, increased competition with government-owned and
government-sponsored entities offering mortgage insurance, changes in regulations, legal actions under Real Estate Settlement
Practices Act, and potential liabilities in connection with our U.S. contract underwriting services; and
• Other risks, including the possibility that in certain circumstances we will be obligated to make payments to GE under our tax
matters agreement even if our corresponding tax savings are never realized and payments could be accelerated in the event of certain
changes in control, and provisions of our certificate of incorporation and by-laws and our tax matters agreement with GE may
discourage takeover attempts and business combinations that stockholders might consider in their best interests.
We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
Investor Update U.S. Mortgage Insurance – February 8, 2008 28
