GENWORTH LIFE INSURANCE COMPANY ASSETS

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2 ASSETS Current Statement Date Net Admitted December 31 Nonadmitted Assets Prior Year Net Assets Assets (Cols. 1-2) Admitted Assets 1. Bonds ,616,239, ,616,239, ,743,668, Stocks: 2.1 Preferred stocks ,212, ,212, ,756, Common stocks ,379,800, ,285, ,349,514, ,936,473, Mortgage loans on real estate: 3.1 First liens ,787,956, ,787,956, ,885,029, Other than first liens Real estate: 4.1 Properties occupied by the company (less $...0 encumbrances) Properties held for the production of income (less $...0 encumbrances) Properties held for sale (less $...0 encumbrances) Cash ($...(28,585,437)), cash equivalents ($...12,021,365) and short-term investments ($...947,246,480) ,682, ,682, ,497, Contract loans (including $...0 premium notes) ,309,993, , ,309,406, ,152,717, Other invested assets ,115, ,341, ,773, ,778, Receivables for securities ,013, , ,540, ,862, Aggregate write-ins for invested assets ,825, ,825, ,613, Subtotals, cash and invested assets (Lines 1 to 9) ,728,838, ,685, ,662,152, ,712,397, Title plants less $...0 charged off (for Title insurers only) Investment income due and accrued ,444, ,444, ,615, Premiums and considerations: 13.1 Uncollected premiums and agents' balances in the course of collection ,757, ,783, ,973, ,978, Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums) ,318, ,445, ,872, ,925, Accrued retrospective premiums Reinsurance: 14.1 Amounts recoverable from reinsurers ,297, , ,161, ,995, Funds held by or deposited with reinsured companies ,881, ,881, ,881, Other amounts receivable under reinsurance contracts ,228, ,957, ,271, ,602, Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon ,266, Net deferred tax asset ,796, ,096, ,699, ,274, Guaranty funds receivable or on deposit ,512, ,512, ,856, Electronic data processing equipment and software ,848, ,746, , , Furniture and equipment, including health care delivery assets ($...0) , , Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates ,551, , ,086, , Health care ($...0) and other amounts receivable Aggregate write-ins for other than invested assets ,554, ,357, ,197, ,674, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 10 through 23) ,074,900, ,544, ,820,355, ,516,316, From Separate Accounts, Segregated Accounts and Protected Cell Accounts ,830, ,830, ,274, TOTALS (Lines 24 and 25) ,120,730, ,544, ,866,186, ,571,590,532 DETAILS OF WRITE-INS Interest rate swaps ,508, ,508, ,486, Credit default swaps ,316, ,316, , Call options ,124, Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above) ,825, ,825, ,613, Prepaid expenses ,374, ,374, State tax recoverable ,070, ,070, ,487, Collateral for asset repo program ,381, ,381, ,278, Summary of remaining write-ins for Line 23 from overflow page ,728, ,912, ,816, ,908, Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above) ,554, ,357, ,197, ,674,455 Q02

3 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31 Statement Date Prior Year 1. Aggregate reserve for life contracts $...17,223,148,605 less $...0 included in Line 6.3 (including $...3,368,750,329 Modco Reserve) ,223,148, ,076,718, Aggregate reserve for accident and health contracts (including $...0 Modco Reserve) ,029,879, ,634,875, Liability for deposit-type contracts (including $...0 Modco Reserve) ,352,807, ,308,827, Contract claims: 4.1 Life ,035, ,255, Accident and health ,159, ,073, Policyholders' dividends $...0 and coupons $...0 due and unpaid Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts: 6.1 Dividends apportioned for payment (including $...0 Modco) Dividends not yet apportioned (including $...0 Modco) Coupons and similar benefits (including $...0 Modco) Amount provisionally held for deferred dividend policies not included in Line Premiums and annuity considerations for life and accident and health contracts received in advance less $...0 discount; including $...40,373,886 accident and health premiums ,391, ,452, Contract liabilities not included elsewhere: 9.1 Surrender values on canceled contracts Provision for experience rating refunds, including $...0 accident and health experience rating refunds Other amounts payable on reinsurance, including $...5,481,354 assumed and $...392,323,561 ceded ,804, ,697, Interest Maintenance Reserve ,798, ,299, Commissions to agents due or accrued - life and annuity contracts $...2,682,406, accident and health $...6,058,287 and deposit-type contract funds $ ,740, ,512, Commissions and expense allowances payable on reinsurance assumed , ,354, General expenses due or accrued ,433, ,600, Transfers to Separate Accounts due or accrued (net) (including $...0 accrued for expense allowances recognized in reserves, net of reinsured allowances)......(22,644,593)...(19,181,384) 14. Taxes, licenses and fees due or accrued, excluding federal income taxes ,254, ,719, Current federal and foreign income taxes, including $...0 on realized capital gains (losses) ,080, Net deferred tax liability Unearned investment income Amounts withheld or retained by company as agent or trustee ,025, ,631, Amounts held for agents' account, including $...0 agents' credit balances , Remittances and items not allocated ,616, ,761, Net adjustment in assets and liabilities due to foreign exchange rates Liability for benefits for employees and agents if not included above Borrowed money $...0 and interest thereon $...416, , , Dividends to stockholders declared and unpaid Miscellaneous liabilities: 24.1 Asset valuation reserve ,103, ,837, Reinsurance in unauthorized companies Funds held under reinsurance treaties with unauthorized reinsurers ,090,241, ,798,727, Payable to parent, subsidiaries and affiliates ,781, ,192, Drafts outstanding Liability for amounts held under uninsured plans Funds held under coinsurance ,335, , Payable for securities ,038, ,853, Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities ,750, ,892, Total Liabilities excluding Separate Accounts business (Lines 1 to 25) ,617,490, ,385,679, From Separate Accounts Statement ,883, ,117, Total Liabilities (Line 26 and 27) ,662,373, ,428,796, Common capital stock ,561, ,561, Preferred capital stock , , Aggregate write-ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus ,877,871, ,290,437, Aggregate write-ins for special surplus funds Unassigned funds (surplus) ,362, ,778, Less treasury stock, at cost: shares common (value included in Line 29 $...0) ,282, ,282, shares preferred (value included in Line 30 $...0) Surplus (Total Lines ) (including $...947,141 in Separate Accounts Statement) ,198,950, ,137,932, Totals of Lines 29, 30 and ,203,812, ,142,793, Totals of Lines 28 and ,866,186, ,571,590,532 DETAILS OF WRITE-INS Interest rate swap liability ,938, ,056, Reverse asset repurchase liability ,000, Expense allowance shortfall liability ,852, ,244, Summary of remaining write-ins for Line 25 from overflow page ,959, ,591, Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) ,750, ,892, Summary of remaining write-ins for Line 31 from overflow page Totals (Lines 3101 thru 3103 plus 3198) (Line 31 above) Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above) Q03

4 SUMMARY OF OPERATIONS (Excluding Unrealized Capital Gains and Losses) Current Prior Prior Year Ended Year to Date Year to Date December Premiums and annuity considerations for life and accident and health contracts ,846,270, ,972,299, ,604, Considerations for supplementary contracts with life contingencies ,919, ,850, ,219, Net investment income ,267,159, ,498,977, ,962,242, Amortization of Interest Maintenance Reserve (IMR) ,898, ,170, ,171, Separate Accounts net gain from operations excluding unrealized gains or losses ,268, ,170, ,591, Commissions and expense allowances on reinsurance ceded ,731, ,058, ,975, Reserve adjustments on reinsurance ceded ,340,105...(119,527,535)...1,688,316, Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts , , , Charges and fees for deposit-type contracts , Aggregate write-ins for miscellaneous income ,126, ,564, ,882, Totals (Lines 1 to 8.3) ,774,812, ,599,685, ,835,162, Death benefits ,434, ,280, ,798, Matured endowments (excluding guaranteed annual pure endowments) Annuity benefits ,272, ,024, ,440, Disability benefits and benefits under accident and health contracts ,186, ,867, ,349, Coupons, guaranteed annual pure endowments and similar benefits Surrender benefits and withdrawals for life contracts ,515,205, ,329,604, ,739,022, Group conversions Interest and adjustments on contract or deposit-type contract funds ,016, ,550, ,409, Payments on supplementary contracts with life contingencies ,409, ,439, ,709, Increase in aggregate reserves for life and accident and health contracts......(352,135,090)...(375,694,954)...(1,311,786,487) 20. Totals (Lines 10 to 19) ,897,390, ,848,072, ,567,945, Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only) ,882, ,493, ,840, Commissions and expense allowances on reinsurance assumed ,447, ,566, ,496, General insurance expenses ,019, ,462, ,984, Insurance taxes, licenses and fees, excluding federal income taxes ,165, ,299, ,109, Increase in loading on deferred and uncollected premiums......(10,823,314)...(40,039,682)...(43,664,977) 26. Net transfers to or (from) Separate Accounts net of reinsurance ,641...(4,600,223)...(9,411,033) 27. Aggregate write-ins for deductions ,143, ,697, ,888, Totals (Lines 20 to 27) ,694,474, ,550,952, ,526,188, Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28) ,337, ,733, ,973, Dividends to policyholders Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30) ,337, ,733, ,973, Federal and foreign income taxes incurred (excluding tax on capital gains)......(36,147,522)...14,821, ,251, Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32) ,485, ,911, ,722, Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $...(14,292,196) (excluding taxes of $...104,842,224 transferred to the IMR)......(407,581,166)...(4,129,165)...(117,515,129) 35. Net income (Line 33 plus Line 34)......(291,095,849)...29,782, ,207,009 CAPITAL AND SURPLUS ACCOUNT 36. Capital and surplus, December 31, prior year ,142,793, ,996,930, ,996,930, Net income (Line 35)......(291,095,849)...29,782, ,207, Change in net unrealized capital gains (losses) less capital gains tax of $...(96,213,227)......(171,667,965)...(61,028,318)...375,370, Change in net unrealized foreign exchange capital gain (loss)......(810,132)...1,609,368...(321,332) 40. Change in net deferred income tax ,218,695...(402,619,451)...(392,925,555) 41. Change in nonadmitted assets......(135,534,150)...394,522, ,436, Change in liability for reinsurance in unauthorized companies Change in reserve on account of change in valuation basis, (increase) or decrease Change in asset valuation reserve ,733,715...(8,460,008)...25,151, Change in treasury stock Surplus (contributed to) withdrawn from Separate Accounts during period......(9,900,000)...2,633,894...(3,300,000) 47. Other changes in surplus in Separate Accounts Statement ,409,684...(2,633,894)...1,584, Change in surplus notes Cumulative effect of changes in accounting principles Capital changes: 50.1 Paid in Transferred from surplus (Stock Dividend) Transferred to surplus Surplus adjustment: 51.1 Paid in ,434, ,834, ,738, Transferred to capital (Stock Dividend) Transferred from capital Change in surplus as a result of reinsurance......(3,124,944)...19,393...(61,076,648) 52. Dividends to stockholders......(300,000,000)...(218,823,558)...(400,000,000) 53. Aggregate write-ins for gains and losses in surplus ,355, Net change in capital and surplus (Lines 37 through 53) ,018,262...(257,162,447)...145,863, Capital and surplus as of statement date (Lines ) ,203,812, ,739,767, ,142,793,948 DETAILS OF WRITE-INS Miscellaneous income ,372, ,781, ,736, Policy loan service fee ,754, ,783, ,146, Summary of remaining write-ins for Line 8.3 from overflow page Totals (Lines thru plus ) (Line 8.3 above) ,126, ,564, ,882, IMR credit taken on coinsurance with unauthorized reinsurer......(99,308,873)...436, , Interest expense on funds held ,452, ,260, ,614, Summary of remaining write-ins for Line 27 from overflow page Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above) ,143, ,697, ,888, Prior period adjustment-interest expense on funds held adjustment for derivatives......(12,628,125) Prior period adjustment - LTC reserves ,983, Summary of remaining write-ins for Line 53 from overflow page Totals (Lines 5301 thru 5303 plus 5398) (Line 53 above) ,355, Q04

5 CASH FROM OPERATIONS CASH FLOW 1 2 Current Year Prior Year Ended to Date December Premiums collected net of reinsurance ,870,131, ,557, Net investment income ,256,255, ,921,055, Miscellaneous income ,170, ,001,256, Total (Lines 1 through 3) ,756,557, ,681,868, Benefit and loss related payments ,232,220, ,619,445, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts......(777,466)...(1,511,221) 7. Commissions, expenses paid and aggregate write-ins for deductions ,474, ,445, Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $...0 tax on capital gains (losses) ,937,646...(29,076,315) 10. Total (Lines 5 through 9) ,517,855, ,491,304, Net cash from operations (Line 4 minus Line 10) ,701,722...(809,436,031) CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,453,692, ,273,690, Stocks ,799, ,389, Mortgage loans ,987, ,583, Real estate Other invested assets ,031, ,659, Net gains or (losses) on cash, cash equivalents and short-term investments , Miscellaneous proceeds ,184, ,843, Total investment proceeds (Lines 12.1 to 12.7) ,925,695, ,234,345, Cost of investments acquired (long-term only): 13.1 Bonds ,750,189, ,251,233, Stocks ,922, ,886, Mortgage loans ,395, ,297, Real estate Other invested assets ,772, ,001, Miscellaneous applications......(210,232,723)...1,262, Total investments acquired (Lines 13.1 to 13.6) ,990,046, ,537,681, Net increase (decrease) in contract loans and premium notes ,596, ,372, Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) ,052, ,291,256 CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16. Cash provided (applied): 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock......(12,565,874)...7,738, Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities......(19,135,256)...683,843, Dividends to stockholders ,000, ,000, Other cash provided (applied)......(199,868,510)...70,053, Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)......(531,569,640)...361,635,514 RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17) ,184, ,490, Cash, cash equivalents and short-term investments: 19.1 Beginning of year ,497, ,007, End of period (Line 18 plus Line 19.1) ,682, ,497,977 Note: Supplemental disclosures of cash flow information for non-cash transactions: Non-cash tax free exchanges bond proceeds......(176,864,262)...(189,196,343) Non-cash tax free exchanges bond purchases......(176,864,262)...(189,196,343) Non-cash capital contribution......(600,000,000)... Q05

6 EXHIBIT 1 DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS Current Year Prior Year Prior Year To Date To Date Ended December Industrial life Ordinary life insurance ,644, ,765, ,635, Ordinary individual annuities ,033, ,545, ,601, Credit life (group and individual) Group life insurance ,444, ,012, ,222, Group annuities ,637, ,584, ,788, A&H - group ,609, ,089, ,171, A&H - credit (group and individual) A&H - other ,197,618, ,122,424, ,515,420, Aggregate of all other lines of business Subtotal ,900,989, ,380,422, ,288,840, Deposit-type contracts ,211, ,077,215, ,424, Total ,753,200, ,457,637, ,141,264,174 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 10 from overflow page Total (Lines 1001 thru 1003 plus 1098) (Line 10 above) Q06

7 NOTES TO FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies No significant change. Note 2 - Accounting Changes and Corrections of Errors During 2008, Genworth Life Insurance Company (the Company ) recorded corrections to its interest on funds withheld relating to its treaty with Brookfield Life Assurance Company ( BLAC ). The impact of the error on 2007 and prior was a 12,628,125 overstatement of interest on funds withheld. The 2007 and prior correction has been recorded as a write-in which reduces unassigned surplus, in accordance with Statements of Statutory Accounting Principles ( SSAP ) No. 3. During 2008, the Company recorded a correction to its LTC statutory reserves, which were overstated. As of December 31, 2007, the Company s LTC reserves were overstated by $103,983,207, which has been recorded as a write-in that increases unassigned surplus, in accordance with SSAP No. 3. Note 3 - Business Combinations and Goodwill No significant change. Note 4 - Discontinued Operations No significant change. Note 5 - Investments E. Repurchase Agreements Effective July 1, 2008, the Company began a repurchase program in which it sells a security at a specified price and agrees to repurchase that security at another specified price at a later date. Repurchase agreements are treated as collateralized financing transactions and are carried at the amounts at which the securities will be subsequently reacquired, including accrued interest, as specified in the respective agreement. The market value of the securities to be repurchased is monitored and collateral levels are adjusted where appropriate. Cash received is invested in fixed maturities. As of September 30, 2008, the fair value of the securities pledged under the repurchase program totaled $315,659,932 and the offsetting repurchase obligation of $ $299,353,571 is included in aggregate write-ins for liabilities on the statement of Liabilities, Surplus, and Other Funds. As of September 30, 2008 the Company has experienced losses from its repurchase agreement of $5,541,386, pre-tax, due to poor market conditions. Note 6 - Joint Ventures, Partnerships and Limited Liability Companies No significant change. Note 7 - Investment Income No significant change. Note 8 - Derivative Instruments No significant change. Note 9 - Income Taxes As of September 30, 2008 protective tax deposits recorded under section 6603 of the Internal Revenue Code were $3,797,260. During the nine months ended September 30, 2008, the Company decreased its income tax provision for certain tax contingencies by $12,565,874, which increased net income causing an increase in unassigned funds. However, the Company's parent, Genworth North America Corporation, formerly known as GNA Corporation ("GNA") had assumed the obligation for these tax contingencies pursuant to its existing tax assumption agreement with the Company, resulting in the Company's reduction to liabilities for the provision of $12,565,874 and an decrease to capital and surplus through an decrease to paid-in capital in an equal amount. There was no impact on total capital and surplus. Note 10 - Information Concerning Parent, Subsidiaries and Affiliates On May 12, 2008, following the prior approval of the Insurance Department of the State of Delaware (the "Delaware Department"), the Company paid an extraordinary dividend on its preferred and common stocks in the amount of $7,500,000 and $292,500,000, respectively, to its stockholder of record. Q07

8 NOTES TO FINANCIAL STATEMENTS On September 30, 2008, the Company transferred assets of $196,000,000 to Genworth Life and Annuity Insurance Company ( GLAIC ), resulting in a receivable from GLAIC. The asset transfers were settled on October 1, 2008 On November 5, 2008, the Company received a $600,000,000 capital contribution in cash from its sole shareholder, GNA, and immediately contributed capital in the same amount to its subsidiary, GLAIC. GLAIC requested and was granted permission by the Virginia Bureau of Insurance to treat the $600,000,000 as a receivable and record it as an admitted asset as of September 30, 2008, based on evidence of receipt of the cash prior to the filing of the accompanying financial statements, which treatment also increased the Company s capital and surplus by the same amount. The Company provided prior notice to the Delaware Department of Insurance of the capital contributions and related accounting treatment. Accordingly, the transaction has been reflected as a $600,000,000 increase to the Company s Investment in GLAIC and an increase in its capital and surplus by the same amount as of September 30, Note 11 - Debt No significant change. Note 12 - Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans No significant change. Note 13 - Capital and Surplus, Shareholders Dividend Restrictions and Quasi-Reorganizations During the second quarter of 2008, Genworth Life and Annuity Insurance Company ("GLAIC"), a subsidiary of the Company, identified an error in the survivorship universal life ( SUL ) insurance direct reserve calculation. The SUL product was introduced by GLAIC in As a result of the error, SUL reserves were understated for GLAIC by $126,415,000, $112,354,710, $58,633,088, and $21,820,723 as of March 31, 2008, and December 31, 2007, 2006, and 2005, respectively. GLAIC, at the direction of the Bureau of Insurance of the Commonwealth of Virginia (the "Commonwealth of Virginia"), has restated its 2007 and March 31, 2008 statutory financial statements to correct for the impact of the error. The 2006 and 2005 impacts of the error were recorded as an adjustment to GLAIC's 2007 unassigned surplus. The error in the SUL insurance direct reserve calculation also impacted Genworth Life Insurance Company of New York ("GLICNY"), a subsidiary of the Company. The SUL product was introduced by GLICNY in As a result of the error, GLICNY's SUL reserves were understated by $4,585,000, $4,361,527, and $642,238 as of March 31, 2008, and December 31, 2007, and 2006, respectively. After consultation with the Insurance Department of the State of New York, GLICNY recorded the corrections in its June 30, 2008 statutory financial statements. The impact of both subsidiaries' (GLAIC and GLICNY) SUL errors on the Company was 3.7% of the Company's Capital and Surplus as of December 31, As a result, the Company made no adjustment to its prior period statements and after consultation with the Delaware Department, the Company was advised not to restate the prior year statements. Accordingly, the Company's investment in GLAIC and GLICNY decreased in the second quarter of Note 14 - Contingencies No significant change. Note 15 - Leases No significant change. Note 16 - Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk Credit default swaps are used by the Company to hedge against changes in the value of its investments due to credit events. In a credit default swap, the Company agrees with another party, at specified intervals, to pay a premium to insure credit risk. If a credit event, as defined by the contract, occurs, generally the contract will require the swap to be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Alternatively, the swap can be cash settled based upon an auction process defined by the International Swaps and Derivatives Association, Inc. See Schedule DB, Part C. The Company uses derivatives to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. This is accomplished through the use of replicated synthetic asset transactions ("RSATs"). RSATs are a combination of a written credit default swap and a fixed maturity holding. See Schedule DB, Part F. Q07.1

9 NOTES TO FINANCIAL STATEMENTS Note 17 - Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities B. Transfer of Servicing of Financial Assets The Company has entered into agreements with one or more financial institutions to act as the Company s agent to lend securities owned by the Company to brokers or other parties. The securities are re-registered, but remain beneficially owned by the Company. As collateral for the loan, the borrower provides cash or government securities, on a daily basis, in amounts equal to or exceeding 102% of the fair value of the applicable securities loaned. The usage of the collateral has been restricted by the Company s board of directors to solely support the securities lending program. The fair value of collateral held is $1,051,941,687 as of September 30, 2008 and the fair value of securities loaned is $936,159,277 as of September 30, As of September 30, 2008 the Company has experienced losses from reinvestment of the related collateral of $14,499,143, pre-tax, due to poor market conditions. C. Wash Sales The Company had no wash sales during the quarter. Note 18 - Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans No significant change. Note 19 - Direct Premium Written/Produced by Managing General Agents/Third Party Administrators No significant change. Note 20 - Other Items C. Other Disclosures As of September 30, 2008, the Company had impairments of $409,914,909, of which $237,856,136 were Subprime or Alt-A (see Note 20I). I. Subprime Mortgage Related Risk Exposure 1. The Company defines Subprime mortgage related risk exposure as: Fair Isaac Company ( FICO ) developed the FICO credit-scoring model to calculate a score based upon a borrower s credit history. FICO credit scores are used as one indicator of a borrower s credit quality. The higher the credit score, the lower the likelihood that a borrower will default on a loan. FICO credit scores range up to 850, with a score of 620 or more generally viewed as a prime loan and a score below 620 generally viewed as a sub-prime loan. A minus loans generally are loans where the borrowers have FICO credit scores between 575 and 660, and where the borrower has a blemished credit history. 2. The Company does not hold any direct investments in subprime or Alt-A mortgage loans. 3. The Company has direct exposure in other investments with underlying subprime or Alt-A related risk. For purposes of completing the above disclosure the following table is used to disclose the Company s subprime and Alt-A exposure: Actual Cost Book Adjusted Carrying Value Fair Value Any other-than-temporary impairment losses recognized to date Residential mortgage backed $- $- $- $- securities Commercial mortgage backed securities Collateralized debt obligations Structured securities Subprime 545,498, ,921, ,308, ,792,085 Alt-A 517,268, ,029, ,445,682 79,064,051 Equity investments in subsidiary, controlled or affiliated entities Other assets The Company does not have any underwriting exposure to subprime or Alt-A mortgages. J. During 2008, the Company recorded approximately $209.0 million, pre-tax, in realized gains, net of reinsurance primarily from sales and terminations of certain derivatives including forward starting swaps. These realized gains were subsequently transferred to the Interest Maintenance Reserve ( IMR ) and will be amortized into income over time in accordance with the Annual Statement Instructions and SSAP No. 7. Q07.2

10 NOTES TO FINANCIAL STATEMENTS Note 21 - Events Subsequent No significant change. Note 22 - Reinsurance No significant change. Note 23 - Retrospectively Rated Contracts & Contracts Subject to Redetermination No significant change. Note 24 - Change in Incurred Losses and Loss Adjustment Expenses No significant change. Note 25 - Intercompany Pooling Arrangements No significant change. Note 26 - Structured Settlements No significant change. Note 27 - Health Care Receivables No significant change. Note 28 - Participating Policies No significant change. Note 29 - Premium Deficiency Reserves No significant change. Note 30 - Reserves for Life Contracts and Deposit-Type Contracts No significant change. Note 31 - Analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics No significant change. Note 32 - Premiums and Annuity Considerations Deferred and Uncollected No significant change. Note 33 - Separate Accounts No significant change. Note 34 - Loss/Claim Adjustment Expenses No significant change. Q07.3

11 GENERAL INTERROGATORIES (Responses to these interrogatories should be based on changes that have occurred since prior year end unless otherwise noted) PART 1 - COMMON INTERROGATORIES GENERAL 1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [ X ] 1.2 If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ] 2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ] 2.2 If yes, date of change: Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [ X ] If yes, complete the Schedule Y-Part 1 - Organizational chart. 4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ] 4.2 If yes, provide name of entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation NAIC State of Name of Entity Company Code Domicile 5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? Yes [ ] No [ ] N/A [ X ] If yes, attach an explanation. 6.1 State as of what date the latest financial examination of the reporting entity was made or is being made. 12/31/ State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. 12/31/ State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 06/16/ By what department or departments? Delaware 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ X ] No [ ] N/A [ ] 6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] No [ ] N/A [ ] 7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ] 7.2 If yes, give full information: 8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ] 8.2 If response to 8.1 is yes, please identify the name of the bank holding company. 8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ X ] No [ ] 8.4 If the response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator] Affiliate Name Location (City, State) FRB OCC OTS FDIC SEC Capital Brokerage Corporation Richmond, VA YES Genworth Financial Wealth Mgmt., Inc. Pleasant Hill, CA YES Genworth Financial Advisers Corp. Schaumburg, IL YES Genworth Financial Sec. Corp. Stamford, CT YES Genworth Financial Planning Corp. Schaumburg, IL YES Genworth Fin. Inv. Mgmt., LLC Stamford, CT YES Centurion Hinds Inv. Mgmt., Inc. Lakewood, CO YES 9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? Yes [ X ] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code If the response to 9.1 is No, please explain: 9.2 Has the code of ethics for senior managers been amended? Yes [ ] No [ X ] Q08

12 GENERAL INTERROGATORIES (Responses to these interrogatories should be based on changes that have occurred since prior year end unless otherwise noted) PART 1 - COMMON INTERROGATORIES 9.21 If the response to 9.2 is Yes, provide information related to amendment(s). 9.3 Have any provisions of the code of ethics been waived for any of the specified officers? Yes [ ] No [ X ] 9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s). FINANCIAL 10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ X ] No [ ] 10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: $...28,059,000 INVESTMENT 11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ X ] No [ ] 11.2 If yes, give full and complete information relating thereto: See the attached filing. 12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $...152,845, Amount of real estate and mortgages held in short-term investments: $ Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ X ] No [ ] 14.2 If yes, please complete the following: 1 2 Prior Year-End Current Quarter Book/Adjusted Carrying Value Book/Adjusted Carrying Value Bonds... $...1,038,829,827 $...1,002,614, Preferred Stock... $...0 $ Common Stock... $...1,960,191,381 $...2,376,640, Short-Term Investments... $...0 $ Mortgage Loans on Real Estate... $...0 $ All Other... $...0 $ Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines to 14.26)... $...2,999,021,208 $...3,379,255, Total Investment in Parent included in Lines to above... $...0 $ Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ X ] No [ ] 15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ X ] No [ ] If no, attach a description with this statement. 16. Excluding items in Schedule E, real estate, mortgage loans and investments held physically in the reporting entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 3, III. Conducting Examinations, G-Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 16.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following: 1 2 Name of Custodian(s) Custodian Address The Bank of New York One Wall Street, New York, NY For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation Name(s) Location(s) Complete Explanation(s) 16.3 Have there been any changes, including name changes, in the custodian(s) identified in 16.1 during the current quarter? Yes [ ] No [ X ] 16.4 If yes, give full and complete information relating thereto: Old Custodian New Custodian Date of Change Reason 16.5 Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts, handle securities and have authority to make investments on behalf of the reporting entity: Central Registration Depository Name(s) Address GE Asset Management, Inc Summer Street, Stamford, CT Blackrock Financial Management, Inc. 40 E. 52nd Street. New York, NY Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? Yes [ ] No [ X ] 17.2 If no, list exceptions: See the attached listing. Q08.1

13 General Interrogatories 12.2 Attachment Effective March 16, 2005, the Company entered into a repurchase program in which it sells a security at a specified price and agrees to repurchase the security at another specified price at a late date. The market value of the securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturities. This program matured on May 15, 2008 and is no longer active. Effective August 21, 2006, the Company entered into an additional repurchase program in which it sells a security at a specified price and agrees to repurchase that security at another specified price at a later date. Repurchase agreements are treated as collateralized financing transactions and are carried at the amounts at which the securities will be subsequently reacquired, including accrued interest, as specified in the respective agreement. The market value of the securities to be repurchased is monitored and collateral levels are adjusted where appropriate. Cash received is invested in fixed and floating maturities. Effective June 26, 2008, the Company entered into a reverse repurchase program in which the counterparty sells a security at a specified price and agrees to repurchase that security at same price plus interest at a later date. Repurchase agreements are treated as collateralized financing transactions and are carried at the amounts at which the securities will be subsequently sold, including accrued interest, as specified in the respective agreement. The market value of the securities to be sold is monitored and collateral levels are adjusted where appropriate. Cash received is invested in fixed and floating maturities. The Company enters into derivatives transactions with various derivatives counterparties under ISDA. To the extent that the counterparties have credit exposure to the Company, the Company posts collateral to them in the form of bonds under ISDA Credit Support Annex.

14 GENERAL INTERROGATORIES PART 1 ATTACHMENT FOR QUESTION 17.2 COUPON RATE MATURITY DATE BOOK VALUE NAIC ACQUIRED DATE ACCT CUSIP DESCRIPTION SEC TYPE GLIC 96445#AC1 White River Forests LLC Bonds Dec-12 3,000, Z 12-Dec-07 GLIC 36182#AB6 GE BAF AB I LLC Bonds Feb-13 8,453, Z 7-Apr-03 GLIC 36182#AC4 GE BAF AB I LLC Bonds Feb , Z 7-Apr-03 GLIC *0 SHORT TERM INST CO PLC GLOB Bonds May-16 92,290, Z 22-Mar-02 GLIC 86357MBK4 Sparcs Trust Bonds ,550, Z 26-Feb-98 GLIC W81850AA2 Se Baken Bonds May-33 28,005, Z 1-Sep-03 GLIC XS EU CREDIT LUX Bonds Jul-12 35,000, Z 13-Jul-07 GLIC XS EU CREDIT LUX Bonds Jul-12 35,000, Z 31-Jul-07 GLIC 24799AKB7 Delta Air Lines Bonds Dec Z 1-Sep-07

15 3001 Summer St Stamford, CT October 23, 2008 To Whom It May Concern: Each quarter, the insurance commissioner s offices of each state in which Genworth Financial and its subsidiaries are domiciled require the completion of SVO (Securities Valuation Office) Compliance Certifications for each of our legal entities. The SVO Compliance Certification lists the securities in our portfolio with Z rating suffixes. A Z suffix indicates that the price or NAIC designation reported by the insurance company was not derived by or obtained from the SVO. A security designated with a Z must be submitted to the SVO for valuation within 120 days of the date the security was acquired. Your signature certifies that, to the best of your knowledge, all prices and NAIC designations for the securities reported in the quarterly and annual statement have been obtained directly from the SVO except as specifically identified below: 1. All securities previously valued by the insurer and identified by a Z suffix have now been submitted to the SVO for a valuation or disposed of by sale or otherwise with the result that all prices and NAIC designations reported in this statement have been provided by the SVO, except for new purchases identified in Schedule D and DA with a Z suffix or items submitted but not yet processed by the SVO. 2. All necessary information on securities which have been previously designated NR by the SVO have either been submitted to the SVO by the insurer for a valuation or disposed of by the insurer. 3. All material issuer events have been reported to the SVO. The issues listed on the SVO Compliance Certification have been cited as exceptions to the above conditions. Exceptions are securities that are not listed in the SVO database with a rating from the NAIC. Among the reasons as to why a security may be unlisted with the SVO: The security in question is a new purchase wherein the insurance company must file a Security Acquisition Report (SAR) within 120 days. The SVO has issued an InfoReq letter. An InfoReq is issued when the SVO determines that the reporting insurance company has failed to provide one or more of the documents necessary for assigning an NAIC rating. The reporting insurance company has 90 days to provide the necessary documentation to the issue in question. The undersigned asserts that the information contained within the SVO Compliance Certifications, is to the best of their knowledge, accurate and complete. Wendy Olson Genworth Financial

16 GENERAL INTERROGATORIES (continued) PART 2 - LIFE & HEALTH 1. Report the statement value of mortgage loans at the end of this reporting period for the following categories: Long-term mortgages in good standing Amount 1.11 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $...4,787,956, Total mortgages in good standing... $...4,787,956, Long-term mortgages in good standing with restructured terms 1.21 Total mortgages in good standing with restructured terms... $ Long-term mortgage loans upon which interest is overdue more than three months 1.31 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages with interest overdue more than three months... $ Long-term mortgage loans in process of foreclosure 1.41 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages in process of foreclosure... $ Total mortgage loans (Lines ) (Page 2, Column 3, Lines )... $...4,787,956, Long-term mortgages foreclosed, properties transferred to real estate in current quarter 1.61 Farm mortgages... $ Residential mortgages... $ Commercial mortgages... $ Total mortgages foreclosed and transferred to real estate... $...0 Q09