Q02. Statement as of June 30, 2009 of the

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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 ,951,079, ,951,079, ,354,903, Stocks: 2.1 Preferred stocks ,784, , ,284, ,171, Common stocks ,567, , ,562, ,054, Mortgage loans on real estate: 3.1 First liens ,541,829, ,541,829, ,666,447, Other than first liens Real estate: 4.1 Properties occupied by the company (less $...0 encumbrances) ,507, ,507, ,545, Properties held for the production of income (less $...0 encumbrances) , , Properties held for sale (less $...0 encumbrances) Cash ($...(4,147,882)), cash equivalents ($...0) and short-term investments ($...386,987,693) ,839, ,839, ,178,015, Contract loans (including $...0 premium notes) ,913, ,293, ,619, ,419, Other invested assets ,368, ,705, ,663, ,806, Receivables for securities ,901, ,211, ,689, ,341, Aggregate write-ins for invested assets ,845, ,845, ,854, Subtotals, cash and invested assets (Lines 1 to 9) ,917,910, ,990, ,898,920, ,778,560, Title plants less $...0 charged off (for Title insurers only) Investment income due and accrued ,816, ,816, ,476, Premiums and considerations: 13.1 Uncollected premiums and agents' balances in the course of collection ,486, , ,485, ,807, Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums) ,766, ,766, ,586, Accrued retrospective premiums Reinsurance: 14.1 Amounts recoverable from reinsurers ,900, ,130, ,769, ,947, Funds held by or deposited with reinsured companies ,958, ,958, ,952, Other amounts receivable under reinsurance contracts ,763, ,345, ,417, ,748, Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon ,954, ,954, ,134, Net deferred tax asset ,341, ,340, ,000, ,411, Guaranty funds receivable or on deposit ,306, ,306, ,582, Electronic data processing equipment and software ,954, ,140, ,814, ,905, Furniture and equipment, including health care delivery assets ($...0) ,462, ,462, Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates ,916, , ,561, ,595, Health care ($...0) and other amounts receivable Aggregate write-ins for other than invested assets ,100, ,177, ,922, ,614, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 10 through 23) ,844,639, ,945, ,331,694, ,126,324, From Separate Accounts, Segregated Accounts and Protected Cell Accounts ,192,967, ,192,967, ,837,550, Total (Lines 24 and 25) ,037,606, ,945, ,524,661, ,963,875,507 DETAILS OF WRITE-INS Put options ,970, ,970, ,898, Interest rate swap ,385, ,385, ,956, Credit default swap , , Summary of remaining write-ins for Line 9 from overflow page ,227, ,227, Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above) ,845, ,845, ,854, Miscellaneous receivables ,282, ,509, ,773, ,821, Business services agreement receivable ,049, ,049, ,593, Receivable for unredeemed M&E fees ,100, ,100, ,200, Summary of remaining write-ins for Line 23 from overflow page ,668, ,668, Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above) ,100, ,177, ,922, ,614,675 Q02

3 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31 Statement Date Prior Year 1. Aggregate reserve for life contracts $...9,464,245,311 less $...0 included in Line 6.3 (including $...852,159,038 Modco Reserve) ,464,245, ,173,146, Aggregate reserve for accident and health contracts (including $...0 Modco Reserve) ,227, ,364, Liability for deposit-type contracts (including $...0 Modco Reserve) ,477,962, ,523,055, Contract claims: 4.1 Life ,140, ,718, Accident and health ,737, ,927, 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 $...1,005,234 accident and health premiums ,081, ,962, 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 $...2,472,860 assumed and $...67,851,623 ceded ,324, ,135, Interest Maintenance Reserve ,663, ,213, Commissions to agents due or accrued - life and annuity contracts $...2,017,514, accident and health $...2,880,688 and deposit-type contract funds $ ,898, ,717, Commissions and expense allowances payable on reinsurance assumed , , General expenses due or accrued ,199, ,049, Transfers to Separate Accounts due or accrued (net) (including $...(242,883,747) accrued for expense allowances recognized in reserves, net of reinsured allowances)......(315,059,568)...(299,420,653) 14. Taxes, licenses and fees due or accrued, excluding federal income taxes ,225, ,857, Current federal and foreign income taxes, including $...0 on realized capital gains (losses) Net deferred tax liability Unearned investment income ,635, ,977, Amounts withheld or retained by company as agent or trustee ,373, ,920, Amounts held for agents' account, including $...0 agents' credit balances , ,552, Remittances and items not allocated ,926, ,837, 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 $ Dividends to stockholders declared and unpaid Miscellaneous liabilities: 24.1 Asset valuation reserve ,196, ,028, Reinsurance in unauthorized companies ,777, ,411, Funds held under reinsurance treaties with unauthorized reinsurers ,171, ,352, Payable to parent, subsidiaries and affiliates ,686, ,805, Drafts outstanding Liability for amounts held under uninsured plans Funds held under coinsurance Payable for securities ,427, ,555, Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities ,731, ,225, Total liabilities excluding Separate Accounts business (Lines 1 to 25) ,339,658, ,218,321, From Separate Accounts statement ,167,419, ,814,634, Total liabilities (Lines 26 and 27) ,507,077, ,032,955, Common capital stock ,651, ,651, Preferred capital stock Aggregate write-ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus ,378,448, ,377,358, Aggregate write-ins for special surplus funds Unassigned funds (surplus) ,484, ,910, Less treasury stock, at cost: shares common (value included in Line 29 $...0) shares preferred (value included in Line 30 $...0) Surplus (Total Lines ) (including $...25,547,496 in Separate Accounts Statement) ,991,932, ,905,268, Totals of Lines 29, 30 and ,017,583, ,930,919, Totals of Lines 28 and ,524,661, ,963,875,507 DETAILS OF WRITE-INS Interest rate swap liability ,210, ,851, Miscellaneous liabilities ,570, Credit default swap liability ,521, ,053, Summary of remaining write-ins for Line 25 from overflow page ,750, Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) ,731, ,225, 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......(125,261,038)...1,786,689, ,192,895, Considerations for supplementary contracts with life contingencies ,391, ,798, ,176, Net investment income ,731, ,280, ,178, Amortization of Interest Maintenance Reserve (IMR) , ,206, ,911, Separate Accounts net gain from operations excluding unrealized gains or losses ,580...(144,361) 6. Commissions and expense allowances on reinsurance ceded ,995, ,737, ,895, Reserve adjustments on reinsurance ceded......(14,618,571)...9,004, ,059, Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts ,131, ,974, ,652, Charges and fees for deposit-type contracts , ,253, , Aggregate write-ins for miscellaneous income ,385, ,523, ,625, Totals (Lines 1 to 8.3) ,074,009, ,410,665, ,343,505, Death benefits ,116, ,412, ,922, Matured endowments (excluding guaranteed annual pure endowments) ,062, ,214, ,875, Annuity benefits ,699, ,008, ,427, Disability benefits and benefits under accident and health contracts ,738, ,755, ,251, Coupons, guaranteed annual pure endowments and similar benefits Surrender benefits and withdrawals for life contracts ,691, ,395, ,196,302, Group conversions Interest and adjustments on contract or deposit-type contract funds ,101, ,700, ,372, Payments on supplementary contracts with life contingencies ,077, ,999, ,864, Increase in aggregate reserves for life and accident and health contracts......(766,376,248)...165,058,173...(80,250,022) 20. Totals (Lines 10 to 19) ,111, ,312,545, ,229,766, Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only) ,515, ,936, ,605, Commissions and expense allowances on reinsurance assumed ,341, ,662, ,244, General insurance expenses ,454, ,864, ,255, Insurance taxes, licenses and fees, excluding federal income taxes ,247, ,389, ,722, Increase in loading on deferred and uncollected premiums......(48,658,662)...(43,487,214)...(32,756,347) 26. Net transfers to or (from) Separate Accounts net of reinsurance ,125, ,921, ,577,697, Aggregate write-ins for deductions Totals (Lines 20 to 27) ,136, ,625,832, ,558,535, Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28) ,873,373...(215,166,954)...(215,029,811) 30. Dividends to policyholders......(29)...(28)...(28) 31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30) ,873,402...(215,166,926)...(215,029,783) 32. Federal and foreign income taxes incurred (excluding tax on capital gains)......(28,844,892)...(52,045,873)...(98,033,686) 33. Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32) ,718,294...(163,121,053)...(116,996,097) 34. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $...(7,706,095) (excluding taxes of $...(7,711,413) transferred to the IMR)......(198,925,181)...(67,656,860)...(125,052,207) 35. Net income (Line 33 plus Line 34) ,793,113...(230,777,913)...(242,048,304) CAPITAL AND SURPLUS ACCOUNT 36. Capital and surplus, December 31, prior year ,930,919, ,414,244, ,414,244, Net income (Line 35) ,793,113...(230,777,913)...(242,048,304) 38. Change in net unrealized capital gains (losses) less capital gains tax of $...(106,478,308)......(129,025,285)...27,041, ,515, Change in net unrealized foreign exchange capital gain (loss) Change in net deferred income tax......(200,980,043)...101,534, ,914, Change in nonadmitted assets ,052,932...(129,608,095)...(320,570,764) 42. Change in liability for reinsurance in unauthorized companies......(191,365,879)...(451,441)...(25,171,554) 43. Change in reserve on account of change in valuation basis, (increase) or decrease (2,846,994) 44. Change in asset valuation reserve ,831, ,861, ,814, Change in treasury stock Surplus (contributed to) withdrawn from Separate Accounts during period ,400,000...(11,365,728) 47. Other changes in surplus in Separate Accounts Statement ,630,966...(15,496,520)...(3,711) 48. 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 ,089, ,357, ,084, Transferred to capital (Stock Dividend) Transferred from capital Change in surplus as a result of reinsurance......(6,200,040)...(9,394,364)...8,061, Dividends to stockholders Aggregate write-ins for gains and losses in surplus......(55,162,604)...(5,706,880)...(5,706,880) 54. Net change in capital and surplus (Lines 37 through 53) ,663,805...(201,239,815)...516,675, Capital and surplus as of statement date (Lines ) ,017,583, ,213,004, ,930,919,978 DETAILS OF WRITE-INS Miscellaneous income ,577, ,867, ,623, Gain from early retirement of institutional contracts at a discount to contract values ,077, ,656, ,088, Fund manager rebates ,730, ,914, Summary of remaining write-ins for Line 8.3 from overflow page Totals (Lines thru plus ) (Line 8.3 above) ,385, ,523, ,625, Special contingency reserve Summary of remaining write-ins for Line 27 from overflow page Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above) Prior period correction- SUL reserves......(48,949,255) Prior period correction- Colony 30 coding revision......(6,213,349) Prior period correction- experience rating refund (5,706,880)...(5,706,880) Summary of remaining write-ins for Line 53 from overflow page Totals (Lines 5301 thru 5303 plus 5398) (Line 53 above)......(55,162,604)...(5,706,880)...(5,706,880) Q04

5 CASH FROM OPERATIONS CASH FLOW 1 2 Current Year Prior Year Ended to Date December Premiums collected net of reinsurance......(136,180,409)...2,197,114, Net investment income ,456, ,993, Miscellaneous income ,841, ,312,488, Total (Lines 1 through 3) ,002,117, ,336,596, Benefit and loss related payments ,124,609, ,247,204, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts ,764, ,615,210, Commissions, expenses paid and aggregate write-ins for deductions ,279, ,459, Dividends paid to policyholders , Federal and foreign income taxes paid (recovered) net of $...0 tax on capital gains (losses)......(17,604,185)...(53,080,978) 10. Total (Lines 5 through 9) ,530,059, ,526,793, Net cash from operations (Line 4 minus Line 10)......(527,942,181)...(190,197,015) CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,780, ,966,150, Stocks , ,121, Mortgage loans ,803, ,439, Real estate Other invested assets ,391, ,741, Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds ,766, ,590, Total investment proceeds (Lines 12.1 to 12.7) ,112,822, ,688,044, Cost of investments acquired (long-term only): 13.1 Bonds ,802, ,439, Stocks ,000, ,200, Mortgage loans ,432, Real estate......(2,954,781)...54, Other invested assets ,257, ,054, Miscellaneous applications ,280, Total investments acquired (Lines 13.1 to 13.6) ,106, ,741,462, Net increase (decrease) in contract loans and premium notes ,140, ,981, Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) ,575, ,600, Cash provided (applied): CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock ,000, Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities......(946,151,244)...(210,195,408) 16.5 Dividends to stockholders Other cash provided (applied)......(65,658,371)...4,471, Net cash from financing and miscellaneous sources (Lines 16.1 through 16.4 minus Line 16.5 plus Line 16.6)......(1,011,809,615)...394,276,062 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)......(795,175,917)...1,111,679, Cash, cash equivalents and short-term investments: 19.1 Beginning of year ,178,015, ,336, End of period (Line 18 plus Line 19.1) ,839, ,178,015,729 Note: Supplemental disclosures of cash flow information for non-cash transactions: Non cash tax fee exchanges bond proceeds......(86,086,723) Non cash tax fee exchanges bond acquired......(86,086,723) Non cash capital contribution RLIC VII......(45,427,593) Non cash capital contribution RLIC V......(3,805,035)... 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 ,220, ,068, ,515,934, Ordinary individual annuities ,062, ,323,028, ,207,739, Credit life (group and individual) Group life insurance ,502, ,531, ,411, Group annuities ,658, ,925, ,608, A&H - group , , ,593, A&H - credit (group and individual) A&H - other ,066, ,011, ,337, Aggregate of all other lines of business Subtotal ,089,321, ,166,514, ,823,823, Deposit-type contracts ,981, ,888, ,082,174, Total ,119,303, ,570,402, ,905,998,178 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 A. Accounting Practices: The accompanying financial statements of (the Company ) have been prepared on the basis of accounting practices prescribed or permitted by the Bureau of Insurance of the Commonwealth of Virginia (the "Virginia Bureau"). The Commonwealth of Virginia requires insurance companies domiciled in the state to prepare their statutory financial statements in accordance with the National Association of Insurance Commissioners ( NAIC ) Accounting Practices and Procedures Manual ( NAIC SAP ) subject to any deviations prescribed or permitted by the Virginia Bureau. A reconciliation of the Company s net income(loss) and capital and surplus between NAIC SAP and practices prescribed and permitted by the Commonwealth of Virginia is shown below: June 30, 2009 December 31, 2008 (1) Net Income (loss) Virginia state basis $ 414,793,113 $ (242,048,304) (2) State Prescribed Practices (Income): - - (3) State Permitted Practices (Income): - - (4) Net Income (loss), NAIC SAP $ 414,793,113 $ (242,048,304) (5) Statutory Surplus Virginia basis $ 2,017,583,783 $ 1,930,919,978 (6) State Prescribed Practices (Surplus): - - (7) State Permitted Practices (Surplus): - - (8) Statutory Surplus, NAIC SAP $ 2,017,583,783 $ 1,930,919,978 The NAIC is considering changes to the method of determining and quantifying impairments of loan-backed and structured securities, under proposed Statement of Statutory Accounting Principles No. 43R Loan-backed and Structured Securities ( SSAP No. 43R ). SSAP No. 43 as currently written requires loan-backed and structured securities to be written down to their undiscounted estimated future cash flows, only when the amount of undiscounted estimated future cash flows is less than their current book value. Under the proposed guidance in SSAP No. 43R, the Company will be required to write-down the cost basis of a loan-backed or structured security based on the difference between the discounted estimated future cash flows and current book value for any decline in fair value below book value that is determined to be other-than-temporary. The difference between the adjusted book value and fair value would then be disclosed in each reporting period's financial statements. SSAP No. 98, the effective date of which was deferred to September 30, 2009 by the NAIC on April 17, 2009, would be superceded by SSAP No. 43R as of September 30, SSAP No. 98 would require an other-than-temporary impairment to be written down to fair value. Current estimates of cumulative effect adjustment for adoption of SSAP No. 43R are approximately $11 million. Note 2 - Accounting Changes and Corrections of Errors During the first quarter of 2009, the Company recorded a prior period correction to its ceded statutory reserves related to a treaty with Hannover Life Reassurance Company of America to cede certain term business on a yearly renewable term reinsurance basis. As of December 31, 2008, the Company's ceded reserves were overstated by approximately $48,949,255. To record the correction, the Company increased net reserves by $48,949,255, with an offsetting decrease to unassigned surplus, in accordance with Statements of Statutory Accounting Principles No. 3. During the second quarter of 2009, the Company recorded a prior period correction to its statutory reserves for the whole life product due to a coding error. As of December 31, 2008, the reserves were understated in the amount of $6,213,349. To record the correction, the Company increased net reserves by $6,213,349, with an offsetting decrease to unassigned surplus, in accordance with Statements of Statutory Accounting Principles No. 3. Note 3 - Business Combinations and Goodwill No significant change. Note 4 - Discontinued Operations No significant change. Note 5 - Investments No significant change. Note 6 - Joint Ventures, Partnerships and Limited Liability Companies No significant change. Q07

8 NOTES TO FINANCIAL STATEMENTS Note 7 - Investment Income No significant change. Note 8 - Derivative Instruments No significant change. Note 9 - Income Taxes The Company has a Special Tax Agreement with its subsidiaries, River Lake Insurance Company V ("RLIC V") and River Lake Insurance Company VII ("RLIC VII"). The agreement obligates the Company to make payments on behalf of RLIC V and RLIC VII for Federal income tax amounts owed by RLIC V and VII pursuant to the tax allocation agreement. These payments are accounted for as additional paid in capital to the RLIC V and VII. On April 7, 2009, the Company made additional capital contributions for $3,731,660 and $44,826,331 to RLIC V and RLIC VII, respectively. Under tax sharing agreements between the Company and River Lake Insurance Company ("RLIC"), River Lake Insurance Company II ("RLIC II"), River Lake Insurance Company III ("RLIC III"), and Rivermont Life Insurance Company ("Rivermont"), the Company may be required to provide certain amounts of capital or a letter of credit upon downgrade of the Company and/or Genworth Financial Inc. below certain S&P and Moody s ratings levels. Rating agency downgrades earlier in the year have triggered these provisions. On May 7, 2009, the Company secured irrevocable Letters of Credit ( LoCs ) from the Federal Home Loan Bank of Atlanta in the amounts of $188,071,000, $130,236,000, $121,132,000, and $22,978,000 in favor of RLIC, RLIC II, RLIC III, and Rivermont, respectively, to meet its obligations under these provisions. The LoCs expire on May 7, 2010, but may be extended, without amendment, annually through May 7, Note 10 - Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties On February 23, 2009, the Company made a capital contribution to RLIC VII in the amount of $250,000 in cash. On April 7, 2009, the Company made a capital contribution to RLIC VII in the amount of $227,750,000 in cash. 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 No significant change. 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 No significant change. Note 17 - Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities C. Wash Sales The Company had no wash sales during the quarter. Q07.1

9 NOTES TO FINANCIAL STATEMENTS 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 H. 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 as of June 30, 2009: 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 63,252,230 58,662,202 28,352,740 55,052,004 Alt-A 246,148, ,404, ,952,238 56,617,039 - Equity investments in subsidiary, controlled or affiliated entities Other assets Note 21 - Events Subsequent The Company holds investments in CIT Group Inc. ( CIT ) which is faced with liquidity challenges. Subsequent to June 30, 2009, market activity has indicated that CIT securities may have become other-than-temporarily impaired. Due to these activities, in July 2009, the Company subsequently changed its intent and began reducing its exposure in CIT. As of June 30, 2009, the Company's holdings of CIT had unrealized losses of $9,643,784. Note 22 - Reinsurance During the first quarter of 2009, the Company amended a treaty with Hannover Life Reinsurance Company dated October 1, 2007 to cede an additional 50% of certain UL policies issued between January 1, 2001 and December 31, Additional reserves ceded under the amendment totaled $154,772,134. Effective January 1, 2009, the Company entered into a reinsurance agreement with Munich American Reinsurance Company to cede on, a 60% quota share basis, certain term life business issued by the Company between December 31, 2008 and December 30, Reserves ceded under this treaty totaled $28,137,525. On April 7, 2009, the Company and RLIC VII entered into a Reinsurance Agreement, effective January 1, 2009, to cede certain term life business issued by the Company in Prior notice of the Reinsurance Agreement was provided to the Virginia Bureau which, by letter dated April 3, 2009, approved the Reinsurance Agreement. The Company made a capital contribution of $324,562,095 to RLIC VII Economic Reserves. Reserves ceded under this treaty totaled $750,530,023. On April 7, 2009, the Company and River Lake Insurance Company V ("RLIC V") entered into a Recapture Agreement effective January 1, 2009, which relates to an existing Reinsurance Agreement (the "RLIC V Agreement"), between such parties. Pursuant to the terms of the Recapture Agreement, the Company recaptured a portion of the business that it had ceded to RLIC V under the original Reinsurance Agreement. The Company received $16,214,098 in cash in Q07.2

10 NOTES TO FINANCIAL STATEMENTS connection with the recapture. The Company recaptured $133,808,719 in term life insurance reserves from RLIC V. Prior notice of the Recapture Agreement was provided to the Virginia Bureau which, by letter dated April 3, 2009, approved such agreement. On April 7, 2009, the Company and RLIC III entered into a Recapture Agreement effective January 1, 2009, which relates to an existing Reinsurance Agreement (the "RLIC III Agreement") effective January 1, 2006, between such parties. Pursuant to the terms of the Recapture Agreement, the Company recaptured a portion of the business that it had ceded to RLIC III under the RLIC III Agreement.The Company received $9,402,428 in cash in connection with the recapture. The Company recaptured $ 87,301,762 in term life insurance reserves from RLIC III. Prior notice of the Recapture Agreement was provided to the Virginia Bureau which, by letter dated April 3, 2009, approved the Recapture Agreement. On April 7, 2009, the Company and Brookfield Life Assurance Company Limited ("Brookfield") entered into a Recapture Agreement effective January 1, 2009, which relates to an existing Reinsurance Agreement (the "Brookfield Agreement"), effective January 1, 2002, between such parties. Pursuant to the terms of the Recapture Agreement, the Company recaptured all of the business that it had ceded to Brookfield under the Brookfield Agreement. Accordingly, Brookfield and the Company terminated the Brookfield Agreement and the related Trust Agreement effective January 1, The Company recieved $40,697,839 in cash in connection with the recapture. The Company recaptured $440,264,995 in term life insurance reserves from Brookfield. Prior notice for the Recapture Agreement was provided to the Virginia Bureau which, by letter dated April 3, 2009, approved such agreement. Note 23 - Retrospectively Rated Contracts & Contracts Subject to Redetermination No significant change. Note 24 - Change in Incurred Losses and Loss Adjustment Expenses Reserves as of December 31, 2008 were $14 million for the Company's Medicare Supplement line of business. For the six months ended June 30, 2009, $9 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $5 million as a result of re-estimation of unpaid claims and claim adjustment expenses principally on the Medicare Supplement line of insurance. Therefore, there has been a $0.1 million favorable prior-year development since December 31, 2008 to June 30, The decrease is generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. 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 Annuity 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. Q07.3

11 NOTES TO FINANCIAL STATEMENTS Note 33 - Separate Accounts No significant change. Note 34 - Loss/Claim Adjustment Expenses No significant change. Q07.4

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 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 N/A 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 [ X ] N/A [ ] If yes, attach an explanation. N/A 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). 5/1/ By what department or departments? Virginia 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: N/A 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. N/A 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 Securities Corporation Stamford, CT Yes Genworth Financial Advisors Corporation Schaumburg, IL Yes Genworth Financial Investment Management, LLC Stamford, CT Yes Genworth Financial Wealth Management, Inc Pleasant Hill, CA Yes Centurion Hinds Investment Management, 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: N/A 9.2 Has the code of ethics for senior managers been amended? Yes [ X ] No [ ] Q08

13 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). The Board of Directors added "gender identity" to the list of characteristics enumerated in the Fair Employment Practices Policy. 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). N/A 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: $...8,584,766 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 [ ] No [ X ] 11.2 If yes, give full and complete information relating thereto: N/A 12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $...77,976, 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... $...331,977,782 $...306,396, Preferred Stock... $...500,000 $...500, Common Stock... $...553,796,676 $...913,294, 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)... $...886,274,458 $...1,220,190, 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-Part 3-Special Deposits, 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, F-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 Federal Home Loan Bank of Atlanta 1475 Peachtree Street, N.E., Atlanta, GA The Bank of New York Mellon 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) N/A 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 N/A 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 N/A Western Asset Management 385 E. Colorado Ave., Pasadena, CA Blackrock Financial Management, Inc 40 E. 52nd St., New York, NY Q08.1

14 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 17.1 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 Attached Q08.2

15 General Interrogatories attachment for question 17.2 COUPON RATE MATURITY DATE BOOK VALUE NAIC AQUIRED DATE ACCT CUSIP DESCRIPTION SEC TYPE GLAIC 03761WAB8 APHEX PACIFIC LTD FOREIGN CREDIT-CORP /31/ ,000, Z 6/8/2007 GLAIC A*0 CENTERBANK_87-1 MBS /18/ , Z 4/1/1995 GLAIC AA1 FGIC CORP CREDIT-CORP 6 1/15/ , Z 7/18/2008 GLAIC *2 SUEZ FINANCE BV PREFERRED STOCK ,103, P2Z 11/8/1985 GLAIC 40959*AD9 AQUARION WATER CO OF NEW HAMPS CREDIT-CORP /1/2023 3,000, Z 4/30/1993 GLAIC D#3 ILLINOIS AMERICAN WATER CO CREDIT-CORP /1/2019 6,000, Z 1/1/1989 GLAIC 45469*109 RWE AG PREFERRED STOCK 6 9/1/ , RP2Z 11/7/1984 GLAIC 47714MAA7 JETBLUE AIRWAYS CORP CREDIT-CORP /15/2019 4,491, Z 1/14/2007 GLAIC 54273*AE7 LONG ISLAND WTR CREDIT-CORP /1/2022 9,000, Z 8/26/1992 GLAIC 57555*AB5 KELDA GROUP PLC CREDIT-CORP /1/2021 1,400, Z 7/30/1991 GLAIC 58501@AD2 STEERS DELAWARE BUSINESS TRUST CREDIT-CORP /13/ ,000, Z 11/3/2000 GLAIC 70924#AA0 PENNSYLVANIA SUBURBAN WATER CO CREDIT-CORP /15/2019 4,000, Z 10/12/1989 GLAIC D*5 TENNESSEE-AMERICAN WATER CO CREDIT-CORP /1/2019 2,500, Z 1/1/1990 GLAIC 97186Q104 NEWTEK BUSINESS SERV. INC. CREDIT-CORP /1/ , Z 9/1/2003 GLAIC BGW09RPY9 EU CREDIT LUX CREDIT-CORP /27/ ,437, Z 10/17/2007 GLAIC G6655#AA2 NORTHERN FOODS PLC CREDIT-CORP /20/ ,000, Z 12/20/2005 GLAIC Q2264@AB3 CHALLENGER FINL CREDIT-CORP /7/ ,000, Z 12/7/2006 GLAIC Q9768*AA3 JOHN FAIRFAX PUB FOREIGN CREDIT-CORP /10/ ,000, Z 7/10/2007

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... $...2,541,829, Total mortgages in good standing... $...2,541,829, 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 )... $...2,541,829, 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

17 SCHEDULE S - CEDED REINSURANCE Showing All New Reinsurance Treaties - Current Year to Date NAIC Federal Type of Is Insurer Company ID Effective Reinsurance Authorized? Code Number Date Name of Reinsurer Location Ceded (YES or NO) Life Affiliates AA /01/2009 AIG UK Ltd. - Lirma N43B0... England... CAT/I, CAT/G... NO /01/2009 Endurance Reinsurance Corporation of America... Delaware... CAT/I, CAT/G... YES AA /01/2009 Lloyds Underwriter Syndicate No 1200 HMA(Heritage)... England... CAT/I, CAT/G... NO AA /01/2009 Lloyds Underwriter Syndicate No ARK (Ark)... England... CAT/I, CAT/G... NO /01/2009 Munich Reinsurance America Inc... Delaware... CAT/I, CAT/G... YES /01/2009 National Union Fire Insurance Co of Pittsburg PA... Pennsylvania... CAT/I, CAT/G... YES AA /01/2009 Lloyds Underwriter Syndicate No AFB... England... CAT/I, CAT/G... NO AA /01/2009 Lloyds Underwriter Syndicate England... CAT/I, CAT/G... NO AA /01/2009 Allied World Assurance Company Ltd... Bermuda... CAT/I, CAT/G... NO /01/2009 Centurion Life Insurance Company... Iowa... CAT/I, CAT/G... YES /01/2009 Munich American Reassurance Company... Georgia... CO/I... YES /01/2009 River Lake Insurance Company VII... Vermont... CO/I... YES... Q10