1156124--3/2/2009--GENWORTH_LIFE_&_ANNUITY_INSURANCE

related topics

{loss, insurance, financial}

{capital, credit, financial}

{regulation, government, change}

{condition, economic, financial}

{tax, income, asset}

{competitive, industry, competition}

{financial, litigation, operation}

{operation, natural, condition}

{system, service, information}

{customer, product, revenue}

Adverse capital and credit market conditions may significantly affect our access to capital and may affect our ability to meet liquidity or refinancing requirements in the future. Continued downturns and volatility in equity and credit markets and the economy would materially adversely affect our business and results of operations. A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and adversely affect our financial condition and results of operations. There can be no assurance as to the impact on the financial markets of the U.S. government s plan to purchase large amounts of illiquid, mortgage-backed and other securities from financial institutions. We may not be able to access any of the U.S. government s recently adopted or future financial support programs. Interest rate fluctuations could adversely affect our business and profitability. Our valuation of fixed maturity, equity and trading securities may include methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect our results of operations or financial condition. Defaults, downgrades or other events impairing the value of our fixed maturity securities portfolio may reduce our income. We may be required to recognize impairments in the value of our goodwill, which would increase our expenses and reduce our U.S. GAAP profitability. The soundness of other financial institutions could adversely affect us. A decline in our risk-based capital could result in a decline in our ratings, increased scrutiny by state insurance regulators and have an adverse impact on our financial condition, results of operations and prospects. If our reserves for future policy claims are inadequate, we may be required to increase our reserve liabilities, which could adversely affect our results of operations and financial condition. Intense competition could negatively affect our ability to maintain or increase our market share and profitability. Reinsurance may not be available, affordable or adequate to protect us against losses. If the counterparties to our reinsurance arrangements or to the derivative instruments we use to hedge our business risks default or fail to perform, we may be exposed to risks we had sought to mitigate, which could adversely affect our financial condition and results of operations. Our focus on key distribution relationships may expose us to reduced sales in the future should a key distribution partner terminate its relationship with us. We are heavily regulated, and changes in regulation may reduce our profitability and limit our growth. Legal and regulatory investigations and actions are increasingly common in the insurance business and may result in financial losses and harm our reputation. Our computer systems may fail or their security may be compromised, which could damage our business and adversely affect our financial condition and results of operations. The occurrence of natural or man-made disasters or a pandemic could adversely affect our financial condition and results of operations. We may face losses if mortality rates differ significantly from our pricing expectations. We may be required to accelerate the amortization of deferred acquisition costs and the present value of future profits, which would increase our expenses and reduce profitability. Medical advances, such as genetic research and diagnostic imaging, and related legislation could adversely affect the financial performance of our life insurance and annuity products. We may face losses if there are significant deviations from our assumptions regarding the future persistency of our insurance policies and annuity contracts. Regulations XXX and AXXX may have an adverse effect on our financial condition and results of operations by requiring us to increase our statutory reserves for term and universal life insurance or incur higher operating costs.

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1156124--3/2/2009--GENWORTH_LIFE_&_ANNUITY_INSURANCE_CO