NHB – APUHF Housing Conference

April 12, 2013

©2013 Genworth Financial, Inc. All rights reserved.

Mortgage Insurance (MI) / Guarantees

Genworth Financial, Inc.’s Key Statistics

Dating back to 1871 with 141 years underwriting

experience

More than 15 Million

Consumers

Over 23,700 Volunteer

Hours

Global Presence(Over 25 Countries)

Approximately 6,300 Employees

Total Revenues of $10.0 Billion

Total Assets of $113.3

Billion

AFORTUNE

500 company

More than 3.5 MillionMortgage Insurance policies

All figures as of December 31, 2012 except volunteer hours as of December 31, 2011

2

Genworth’s Global MI Thought Leadership

Sweden USAUK

New Zealand

Spain

South Korea

Ireland MexicoItaly

Finland IndiaHong KongGermany

Australia ChinaCanadaBrazil

3

Operating platforms or representative offices

Positive Development Aspects Of Housing

4

For Both Families And Societies

Source: Retsinas, Nicolas Paul And Belsky, Eric. Low-income Home Ownership. The Brookings Institution. 2002: 8-10. Web. 1 November 2012.

For The Family For Society / Government

Enhances Stability, Safety & Security Enhances Stability, Safety & Security

Aids Social Mobility Helps Reduce Non-Banked Populations

Supports Improvement In Health, Education, Welfare

Facilitates Robust, Resilient Economic Development

Provides Tangible Asset For Future Financial Needs / Legacy

Contributes To National Wealth

Allows Families To Fully Participate In Economies They Have Helped Create

Grows Perception As Developed Nation

Source: HDFC, India Infoline Research Sep 2009

Depth Of Housing Finance - Asia

93

8680

48

41

3229

26

1712

7

0

20

40

60

80

100

Hong-kong

Taiwan Germany UKUSA

(%)

India KoreaThailand MalaysiaChina Singapore

Mortgage: GDP ratio remains low at 7%

Source: HDFC, India Infoline Research September 2009

Mortgage Debt Outstanding To GDP

Why Such Low Relative Penetration In Some Markets?

5

6

Higher Default Probability

Source: Fitch Ratings RMBS Seven-Country Default Average (2010 & 2011)

<40 40+ 50+ 60+ 70+ 80+ 85+ 90+ 95+

1.1%1.5%

1.8%2.3%

3.0%

3.7%

4.3%

5.7%

6.8%

Loan to Value (LTV)

Risk Aversion To High Loan-To-Value* (LTV) Mortgages

One Potential Barrier …

* Loan-To-Value Ratio = Loan Amount Divided By Property Value

What Is Mortgage Insurance (MI)?

What MI Is … What MI Is NOT …

7

Mortgage Life Insurance … Pays Loan Amount w/Borrower’s Death

MI Complements Financing By Covering The Consumer Credit Risk Associated With Residential Mortgage Loans

Payment Protection Insurance ... Unemployment, Disability Support

Protects Lenders From Borrower Default On Residential Mortgages

Generally Used When LTV > 70-75%

Targeted At 1st Time / Middle Class Purchasers

GSE Type Guarantees

8

Offers Tools For Maintaining Home Ownership

MI Developmental Advantages

For Lenders …

For MarketIntroduces Additional Source Of Capital Into The Housing System

Encourages Builders, Developers, Lenders To Better Serve First-Time Buyers

Creates Standardization / Enforces Underwriting Standards

Unique Source Of Feedback For Regulators And Market

Mitigates Risk

Provides Best Practice Resources For Mortgage Innovation

For Home Buyers …

Helps Borrowers Get Into Homes Faster

Reduces Savings For Down Payment

Grows Earning Assets

How It Works – Micro Level

9

No MI

Lender Exposure

80

80LT

V M

ortg

age

Borrower Equity

25

Le

nd

er

Lo

ss

25

Borrower Equity

10

MI Claim 25

Property Salvage

65

35% MI Claim Severity

Rec

ove

ry 6

5

90LT

V M

ortg

age

Borrower Equity

20

Smaller Borrower Down Payment

Lower Lender Exposure

Example: Loan Size = 100

Summary

MI Now Used In Over 35 Countries …

Public, Private, Public / Private

Facilitates Economic Development

Broad & Deep Market Value Propositions

Consumers, Lenders, Regulators

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MI Helps People Into Homes Faster … And Helps Them Stay There