497 1 d690219d497.txt 497 FOR SAI OF CHOICE PRE AND FOUNDATION PRE Statement of Additional Information For Flexible Premium Variable Deferred Annuity Contracts Form P1154 4/00 Issued by: Genworth Life and Annuity Insurance Company Genworth Life & Annuity VA Separate Account 1 6610 West Broad Street Richmond, Virginia 23230 Telephone Number: (800) 352-9910 -------------------------------------------------------------------------------- This Statement of Additional Information is not a prospectus. It should be read in conjunction with the prospectus, dated May 1, 2019, for the Flexible Premium Variable Deferred Annuity Contracts issued by Genworth Life and Annuity Insurance Company through its Genworth Life & Annuity VA Separate Account 1. The terms used in the current prospectus for the Flexible Premium Variable Deferred Annuity Contracts are incorporated into this Statement of Additional Information. For a free copy of the prospectus: Call: (800) 352-9910 Or write: Genworth Life and Annuity Insurance Company 6610 West Broad Street Richmond, Virginia 23230 Or visit: www.genworth.com Or: contact your financial representative The date of this Statement of Additional Information is May 1, 2019. B-1 TABLE OF CONTENTS The Company..................................................................................................... B-3 The Separate Account............................................................................................ B-4 Additional Information About the Guarantee Account.............................................................. B-4 The Contracts................................................................................................... B-4 Transfer of Annuity Units.................................................................................... B-4 Net Investment Factor........................................................................................ B-4 Termination of Participation Agreements......................................................................... B-4 Calculation of Performance Data................................................................................. B-5 Subaccounts Investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund and the Dreyfus Variable Investment Fund -- Government Money Market Portfolio...................................... B-5 Other Subaccounts............................................................................................ B-7 Other Performance Data....................................................................................... B-7 Tax Matters..................................................................................................... B-8 Taxation of Genworth Life and Annuity Insurance Company...................................................... B-8 IRS Required Distributions................................................................................... B-8 General Provisions.............................................................................................. B-8 Using the Contracts as Collateral............................................................................ B-8 The Beneficiary.............................................................................................. B-9 Non-Participating............................................................................................ B-9 Misstatement of Age or Gender................................................................................ B-9 Incontestability............................................................................................. B-9 Statement of Values.......................................................................................... B-9 Trust as Owner or Beneficiary................................................................................ B-9 Written Notice............................................................................................... B-9 Legal Developments Regarding Employment-Related Benefit Plans................................................... B-9 Regulation of Genworth Life and Annuity Insurance Company....................................................... B-9 Experts......................................................................................................... B-9 Financial Statements............................................................................................ B-10 B-2 The Company We are a stock life insurance company operating under a charter granted by the Commonwealth of Virginia on March 21, 1871 as The Life Insurance Company of Virginia. An affiliate of our former ultimate parent company acquired GLAIC on April 1, 1996 and ultimately contributed the majority of the outstanding common stock to Genworth Life Insurance Company ("GLIC"). On May 31, 2004, we became a direct, wholly-owned subsidiary of GLIC. We are an indirect, wholly-owned subsidiary of Genworth Financial, Inc. ("Genworth"). On October 21, 2016, Genworth entered into an agreement and plan of merger (the "Merger Agreement") with Asia Pacific Global Capital Co., Ltd. ("the Parent"), a limited liability company incorporated in the People's Republic of China, and Asia Pacific Global Capital USA Corporation ("Merger Sub"), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth with Genworth surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, "China Oceanwide"). China Oceanwide has agreed to acquire all of Genworth's outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth's stockholders voted on and approved a proposal to adopt the Merger Agreement. Genworth and China Oceanwide continue to work towards satisfying the closing conditions of their proposed transaction as soon as possible. The closing of the transaction remains subject to other conditions and approvals. We have a 34.5% investment in an affiliate, Genworth Life Insurance Company of New York. Our principal offices are located at 6610 West Broad Street, Richmond, Virginia 23230. We are a subsidiary of Genworth, a financial services company dedicated to helping meet the homeownership and long-term care needs of our customers. We operate through two segments: (i) U.S. Life Insurance and (ii) Runoff. . U.S. Life Insurance. Our principal products in our U.S. Life Insurance segment are life insurance and fixed deferred and immediate annuities. Deferred annuities are investment vehicles intended for contract owners who want to accumulate tax-deferred assets for retirement, desire a tax-efficient source of income and seek to protect against outliving their assets. Immediate annuities provide a fixed amount of income for either a defined number of years, the annuitant's lifetime or the longer of a defined number of years or the annuitant's lifetime. In March 2016, Genworth suspended sales of traditional life insurance and fixed annuity products. This decision resulted in the suspension of our offerings for traditional life insurance and fixed annuity products. We, however, continue to service our existing retained and reinsured blocks of business. . Runoff. Our Runoff segment includes the results of non-strategic products that are no longer actively sold. Our non-strategic products primarily include our variable annuities, variable life insurance, group variable annuities offered through retirement plans and funding agreements. Most of our variable annuities include guaranteed minimum death benefits. Some of our group and individual variable annuity products include guaranteed minimum benefit features such as guaranteed minimum withdrawal benefits and certain types of guaranteed annuitization benefits. We no longer offer retail and group variable annuities but continue to accept purchase payments on and service our existing block of business. We also no longer offer variable life insurance policies but we continue to service existing policies. We also have Corporate and Other activities, which include other corporate income and expenses not allocated to the segments. We do business in the District of Columbia, Bermuda, and all states, except New York. We are subject to regulation by the State Corporation Commission of the Commonwealth of Virginia. We file an annual statement with the Virginia Commissioner of Insurance on or before March 1 of each year covering our operations and reporting on our financial condition as of December 31 of the preceding year. Periodically, the Commissioner of Insurance examines our liabilities and reserves and those of the Variable Account and assesses their adequacy, and a full examination of our operations is conducted by the State Corporation Commission, Bureau of Insurance of the Commonwealth of Virginia, at least every five years. We are also subject to the insurance laws and regulation of other states within which we are licensed to operate. B-3 The Separate Account In accordance with the board resolution establishing the Separate Account, such Separate Account will be divided into Subaccounts, each of which shall invest in the shares of a designated mutual fund portfolio, unit investment trust, managed separate account and/or other portfolios (the "Eligible Portfolios"), and net purchase payments under the contracts shall be allocated to Subaccounts which will invest in the Eligible Portfolios set forth in the contracts in accordance with the instructions received from contract owners. Additional Information About the Guarantee Account The initial interest rate guarantee period for any allocation you make to the Guarantee Account will be one year or longer. Subsequent interest rate guarantee periods will each be at least one year. We may credit additional rates of interest for specified periods from time to time. The Contracts Transfer of Annuity Units At your request, Annuity Units may be transferred three times per calendar year from the Subaccounts in which they are currently held (subject to certain restrictions described in the contract and specific rider options). The number of Annuity Units to be transferred is (a) times (b) divided by (c) where: (a) is the number of Annuity Units in the current Subaccount desired to be transferred; (b) is the Annuity Unit Value for the Subaccount in which the Annuity Units are currently held; and (c) is the Annuity Unit Value for the Subaccount to which the transfer is made. If the number of Annuity Units remaining in a Subaccount after the transfer is less than 1, we will transfer the remaining Annuity Units in addition to the amounts requested. We will not transfer Annuity Units into any Subaccounts unless the number of Annuity Units of that Subaccount after the transfer is at least 1. The amount of the income payment as of the date of the transfer will not be affected by the transfer (however, subsequent variable income payments will reflect the investment experience of the selected Subaccounts). Net Investment Factor The net investment factor measures investment performance of the Subaccounts during a Valuation Period. Each Subaccount has its own net investment factor. The net investment factor of a Subaccount available under a contract for a Valuation Period is (a) divided by (b) minus (c) where: (a) is the result of: (1) the value of the net assets of that Subaccount at the end of the preceding Valuation Period; plus (2) the investment income and capital gains, realized or unrealized, credited to the net assets of that Subaccount during the Valuation Period for which the net investment factor is being determined; minus (3) the capital losses, realized or unrealized, charged against those assets during the Valuation Period; minus (4) any amount charged against that Subaccount for taxes (this includes any amount we set aside during the Valuation Period as a provision for taxes attributable to the operation or maintenance of that Subaccount); and (b) is the value of the net assets of that Subaccount at the end of the preceding Valuation Period; and (c) is a factor for the Valuation Period representing the mortality and expense risk charge and the administrative expense charge. We will value assets in the Separate Account at their fair market value in accordance with generally accepted accounting practices and applicable laws and regulations. Termination of Participation Agreements The participation agreements pursuant to which the Portfolios sell their shares to the Separate Account contain varying provisions regarding termination. The following summarizes those provisions: AB Variable Products Series Fund, Inc. This agreement may be terminated by the parties upon six months' advance written notice. AIM Variable Insurance Funds (Invesco Variable Insurance Funds). This agreement may be terminated by the parties upon six months' advance written notice. B-4 American Century Variable Portfolios, Inc. This agreement may be terminated by either party upon 180 days' prior written notice to the other party. American Century Variable Portfolios II, Inc. This agreement may be terminated by the parties upon 180 days' advance written notice to the other parties, unless a shorter time is agreed upon by the parties. BlackRock Variable Series Funds, Inc. This agreement may be terminated by the parties upon 60 days' advance written notice. Columbia Funds Variable Series Trust II. This agreement may be terminated by the parties upon 60 days' advance written notice. Dreyfus. This agreement may be terminated by the parties upon six months' advance written notice. DWS Variable Series II. The agreement may be terminated by the parties upon three months' advance written notice. Eaton Vance Variable Trust. This agreement may be terminated by the parties upon six months' advance written notice. Federated Insurance Series. This agreement may be terminated by the parties upon 180 days' advance written notice. Fidelity Variable Insurance Products Fund. These agreements provide for termination upon 90 days' advance notice by either party. Franklin Templeton Variable Insurance Trust. This agreement may be terminated by the parties upon 60 days' advance written notice. Goldman Sachs Variable Insurance Trust. This agreement may be terminated at the option of any party upon six months' written notice to the other parties. Janus Aspen Series. This agreement may be terminated by the parties upon six months' advance written notice. JPMorgan Insurance Trust. This agreement may be terminated by the parties upon 180 days' notice unless a shorter time is agreed to by the parties. Legg Mason Partners Variable Equity Trust. The agreement may be terminated at the option of any party upon one year advance written notice. MFS(R) Variable Insurance Trust and MFS(R) Variable Insurance Trust II. This agreement may be terminated by the parties upon six months' advance written notice. Oppenheimer Variable Account Funds. This agreement may be terminated by the parties upon six months' advance written notice. PIMCO Variable Insurance Trust. This agreement may be terminated by the parties upon six months' advance written notice, unless a shorter time is agreed to by the parties. Rydex Variable Trust. This agreement may be terminated by the parties upon six months' advance written notice. The Prudential Series Fund. This agreement may be terminated by the parties upon 60 days' advance written notice. State Street Variable Insurance Series Funds, Inc. This agreement may be terminated at the option of any party upon six months' written notice to the other parties, unless a shorter time is agreed to by the parties. Wells Fargo Variable Trust. This agreement may be terminated by the parties upon six months' advance written notice. Calculation of Performance Data From time to time, we may disclose total return, yield, and other performance data for the Subaccounts pertaining to the contracts. Such performance data will be computed, or accompanied by performance data computed, in accordance with the standards defined by the SEC and FINRA. The calculations of yield, total return, and other performance data do not reflect the effect of any premium tax that may be applicable to a particular contract. Premium taxes currently range from 0% to 3.5% of purchase payments and are generally based on the rules of the state in which you reside. Subaccounts Investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund and the Dreyfus Variable Investment Fund -- Government Money Market Portfolio From time to time, advertisements and sales literature may quote the yield of the Subaccounts investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund and the Dreyfus Variable Investment Fund -- Government Money Market Portfolio for a seven-day period, in a manner which does not take into consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other B-5 than investment income) at the end of the seven-day period in the value of a hypothetical account under a contract having a balance of one unit in the Subaccount investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or the Subaccount investing in the Dreyfus Variable Investment Fund -- Government Money Market Portfolio at the beginning of the period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing the result on a 365-day basis. The net change in account value reflects: 1) net income from the Portfolio attributable to an initial investment of $10,000; and 2) charges and deductions imposed under the contract which are attributable to the hypothetical account. The charges and deductions include the per unit charges for the $30 annual contract charge, the mortality and expense risk charge that applies when each Annuitant is older than age 70 at issue (deducted daily at an effective annual rate of 1.55% of the hypothetical investment in the Separate Account), and the administrative expense charge (deducted daily at an effective annual rate of 0.15% of assets in the Separate Account). We also quote the yield of the Subaccounts investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund and the Dreyfus Variable Investment Fund -- Government Money Market Portfolio in the same manner as described above except the mortality and expense risk charge that applies when each Annuitant is age 70 or younger at issue at an annual effective rate of 1.35% of the hypothetical investment in the Separate Account. We assume for the purposes of the yield calculation that this charge will be waived. Current Yield will be calculated according to the following formula: Current Yield = ((NCP - ES)/UV) X (365/7) where: NCP = the net change in the value of the investment Portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the seven-day period attributable to a hypothetical account having a balance of one unit. ES = per unit expenses of the hypothetical account for the seven-day period. UV = the unit value on the first day of the seven-day period. We may also quote the effective yield of the Subaccount investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or the Subaccount investing in the Dreyfus Variable Investment Fund -- Government Money Market Portfolio determined on a compounded basis for the same seven-day period. The effective yield is calculated by compounding the base period return according to the following formula: Effective Yield = (1 + ((NCP - ES)/UV))/365/7/ - 1 where: NCP = the net change in the value of the investment Portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the seven-day period attributable to a hypothetical account having a balance of one unit. ES = per unit expenses of the hypothetical account for the seven-day period. UV = the unit value for the first day of the seven-day period. The yield on amounts held in the Subaccount investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or the Subaccount investing in the Dreyfus Variable Investment Fund -- Government Money Market Portfolio normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The Goldman Sachs Variable Insurance Trust -- Government Money Market Fund's or the Dreyfus Variable Investment Fund -- Government Money Market Portfolio's actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or Dreyfus Variable Investment Fund -- Government Money Market Portfolio, the types and quality of portfolio securities held by that Portfolio, and that Portfolio's operating expenses. Because of the charges and deductions imposed under the contract, the yield for the Subaccount investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or the Dreyfus Variable Investment Fund -- Government Money Market Portfolio will be lower than the yield for the Subaccount investing in the Goldman Sachs Variable Insurance Trust -- Government Money Market Fund or the Dreyfus Variable Investment Fund -- Government Money Market Portfolio. Yield calculations do not take into account the surrender charges imposed under the contract or the charges for any optional riders. Goldman Sachs Variable Insurance Trust -- Government Money Market Fund (For Annuitants older than age 70 when the contract is issued) Current Yield: 0.28% as of December 31, 2018 Effective Yield: 0.28% as of December 31, 2018 B-6 Goldman Sachs Variable Insurance Trust -- Government Money Market Fund (For Annuitants 70 and younger when the contract is issued) Current Yield: 0.49% as of December 31, 2018 Effective Yield: 0.49% as of December 31, 2018 Dreyfus Variable Investment Fund -- Government Money Market Portfolio (For Annuitants older than age 70 when the contract is issued) Current Yield: 0.05% as of December 31, 2018 Effective Yield: 0.05% as of December 31, 2018 Dreyfus Variable Investment Fund -- Government Money Market Portfolio (For Annuitants 70 and younger when the contract is issued) Current Yield: 0.25% as of December 31, 2018 Effective Yield: 0.25% as of December 31, 2018 Past Performance is not a Guarantee or Projection of Future Results. Other Subaccounts Standardized Total Return. Sales literature or advertisements may quote total return, including average annual total return for one or more of the Subaccounts for various periods of time including 1 year, 5 years and 10 years, or from inception if any of those periods are not available. Average annual total return for a period represents the average annual compounded rate of return that would equate an initial investment of $1,000 under a contract to the redemption value of that investment as of the last day of the period. The ending date for each period for which total return quotations are provided will be for the most recent practicable, considering the type and media of the communication, and will be stated in the communication. For periods that began before the contract was available, performance data will be based on the performance of the underlying Portfolios, adjusted for the level of the Separate Account and contract charges currently in effect. Average annual total return will be calculated using Subaccount unit values and deductions for the annual contract charge and the surrender charge as described below: (1) We calculate the unit value for each Valuation Period based on the performance of the Subaccount's underlying investment Portfolio (after deductions for Portfolio expenses, the administrative expense charge, and the mortality and expense risk charge that applies when either Annuitant is older than age 70 at issue). (2) The annual contract charge is $30 deducted at the beginning of each contract year after the first. For purposes of calculating average annual total return, we assume that the annual contract charge is equivalent to 0.30% of Contract Value. This charge is waived if the Contract Value is more than $40,000 at the time the charge is due. (3) The surrender charge will be determined by assuming a surrender of the contract at the end of the period. Average annual total return for periods of six years or less will therefore reflect the deduction of a surrender charge. (4) Standardized total return considers the charges for all optional death benefit riders. (5) Standardized total return does not reflect the deduction of any premium taxes. (6) Standardized total return will then be calculated according to the following formula: TR = (ERV/P)/1/N/ - 1 where: TR = the average annual total return for the period. ERV = the ending redeemable value (reflecting deductions as described above) of the hypothetical investment at the end of the period. P = a hypothetical single investment of $1,000. N = the duration of the period (in years). The Portfolios have provided the price information used to calculate the historical performance of the Subaccounts. We have no reason to doubt the accuracy of the figures provided by the Portfolios. We have not independently verified such information. Other Performance Data We may disclose cumulative total return in conjunction with the standardized format described above. The cumulative total return will be calculated using the following formula: CTR = (ERV/P)-1 where: CTR = the cumulative total return for the period. ERV = the ending redeemable value (reflecting deductions as described above) of the hypothetical investment at the end of the period. P = a hypothetical single investment of $1,000. B-7 Sales literature may also quote cumulative and/or average annual total return that does not reflect the surrender charge. This is calculated in exactly the same way as average annual total return, except that the ending redeemable value of the hypothetical investment is replaced with an ending value for the period that does not take into account any charges on withdrawn amounts. If such charges were included, the performance numbers would be lower. Other non-standardized quotations of Subaccount performance may also be used in sales literature. Such quotations will be accompanied by a description of how they were calculated. We will accompany any non-standardized quotations of Subaccount performance with standardized performance quotations. Tax Matters Taxation of Genworth Life and Annuity Insurance Company We do not expect to incur any federal income tax liability attributable to investment income or capital gains retained as part of the reserves under the contracts. See the "Tax Matters" section of the prospectus. Based upon these expectations, no charge is being made currently to the Separate Account for federal income taxes. We will periodically review the question of a charge to the Separate Account for federal income taxes related to the Separate Account. Such a charge may be made in future years if we believe that we may incur federal income taxes. This might become necessary if the tax treatment of the Company is ultimately determined to be other than what we currently believe it to be, if there are changes made in the federal income tax treatment of annuities at the corporate level, or if there is a change in our tax status. In the event that we should incur federal income taxes attributable to investment income or capital gains retained as part of the reserves under the contracts, the Contract Value would be correspondingly adjusted by any provision or charge for such taxes. We may also incur state and local taxes (in addition to premium taxes). At present, these taxes, with the exception of premium taxes, are not significant. If there is a material change in applicable state or local tax laws causing an increase in taxes other than premium taxes (for which we currently impose a charge), charges for such taxes attributable to the Separate Account may be made. IRS Required Distributions In order to be treated as an annuity contract for federal income tax purposes, Section 72(s) of the Code requires any Non-Qualified Contract to provide that: (a) if any owner dies on or after the Annuity Commencement Date but prior to the time the entire interest in the contract has been distributed, the remaining portion of such interest will be distributed at least as rapidly as under the method of distribution being used as of the date of that owner's death; and (b) if any owner dies prior to the Annuity Commencement Date, the entire interest in the contract will be distributed: (1) within five years after the date of that owner's death; or (2) as income payments which will begin within one year of that owner's death and which will be made over the life of the owner's "designated beneficiary" or over a period not extending beyond the life expectancy of that beneficiary. The "designated beneficiary" generally is the person who will be treated as the sole owner of the contract following the death of the owner, joint owner or, in certain circumstances, the Annuitant or Joint Annuitant. However, if the "designated beneficiary" is the surviving spouse of the decedent, these distribution rules will not apply until the surviving spouse's death (and this spousal exception will not again be available). If any owner is not an individual, the death of the Annuitant or Joint Annuitant will be treated as the death of an owner for purposes of these rules. The Non-Qualified Contracts contain provisions which are intended to comply with the requirements of Section 72(s) of the Code, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the requirements of Section 72(s) when clarified by regulation or otherwise. Other rules apply to Qualified Contracts. General Provisions Using the Contracts as Collateral A Non-Qualified Contract can be assigned as collateral security. We must be notified in writing if a contract is assigned. Any payment made before the assignment is recorded at our Home Office will not be affected. We are not responsible for the validity of an assignment. Your rights and the rights of a beneficiary may be affected by an assignment. The basic benefits of a Non-Qualified Contract are assignable. Additional B-8 benefits added by rider may or may not be available/eligible for assignment. Assigning a contract as collateral may have adverse tax consequences. See the "Tax Matters" provision of the prospectus. A Qualified Contract may not be sold, assigned, transferred, discounted, pledged or otherwise transferred except under such conditions as may be allowed under applicable law. The Beneficiary You may select one or more primary and contingent beneficiaries during your lifetime upon application and by filing a written request with our Home Office. Each change of beneficiary revokes any previous designation. Non-Participating The contract is non-participating. No dividends are payable. Misstatement of Age or Gender If the Annuitant's age or gender, if applicable, was misstated on the contract data page, any contract benefits or proceeds, or availability thereof, will be determined using the correct age and gender. Incontestability We will not contest the contract. Statement of Values At least once each year, we will send you a statement of values within 30 days after each report date. The statement will show Contract Value, purchase payments and other financial transactions made by you during the report period. Trust as Owner or Beneficiary If a trust is named as the owner or beneficiary of this contract and subsequently exercises ownership rights or claims benefits hereunder, we will have no obligation to verify that a trust is in effect or that the trustee is acting within the scope of his/her authority. Payment of contract benefits to the trustee shall release us from all obligations under the contract to the extent of the payment. When we make a payment to the trustee, we will have no obligation to ensure that such payment is applied according to the terms of the trust agreement. Written Notice Any written notice should be sent to us at our Home Office at 6610 West Broad Street, Richmond, Virginia 23230. The contract number and the Annuitant's full name must be included. We will send all notices to the owner at the last known address on file with us. Legal Developments Regarding Employment-Related Benefit Plans On July 6, 1983, the Supreme Court held in Arizona Governing Committee for Tax Deferred Annuity v. Norris, 463 U.S. 1073 (1983), that optional annuity benefits provided under an employee's deferred compensation plan could not, under Title VII of the Civil Rights Act of 1964, vary between men and women on the basis of gender. The contract contains guaranteed annuity purchase rates for certain Optional Payment Plans that distinguish between men and women. Accordingly, employers and employee organizations should consider, in consultation with legal counsel, the impact of Norris, and Title VII generally, on any employment-related insurance or benefit program for which a contract may be purchased. Regulation of Genworth Life and Annuity Insurance Company Besides federal securities laws and Virginia insurance law, we are subject to the insurance laws and regulations of other states within which we are licensed to operate. Generally, the Insurance Department of any other state applies the laws of the state of domicile in determining permissible investments. Presently, we are licensed to do business in the District of Columbia, Bermuda, and all states, except New York. Experts The statutory financial statements of Genworth Life and Annuity Insurance Company as of December 31, 2018 and 2017, and for each of the years in the three-year period ended December 31, 2018, and the financial statements of the Subaccounts which comprise the Separate Account as of December 31, 2018 and for the periods indicated, have been included herein and in the registration statement in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. The KPMG LLP report dated April 22, 2019 of Genworth Life and Annuity Insurance Company includes explanatory language that states that the financial statements are prepared by Genworth Life and Annuity Insurance Company using statutory accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the financial statements are not intended to be presented in accordance with U.S. generally B-9 accepted accounting principles. The financial statements are presented fairly, in all material respects, in accordance with statutory accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance. The business address for KPMG LLP is 1021 East Cary Street, Suite 2000, Richmond, Virginia 23219. Financial Statements The Statement of Additional Information contains the financial statements of the Company and the financial statements of the Separate Account. You should distinguish the financial statements of the Company from the financial statements of the Separate Account. Please consider the financial statements of the Company only as bearing on our ability to meet our obligations under the contracts. You should not consider the financial statements of the Company as affecting the investment performance of the assets held in the Separate Account. B-10 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Financial Statements Year ended December 31, 2018 (With Report of Independent Registered Public Accounting Firm Thereon) GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Table of Contents Year ended December 31, 2018

Page ----- Report of Independent Registered public Accounting Firm.................... F-1 Statements of Assets and Liabilities....................................... F-6 Statements of Operations................................................... F-18 Statements of Changes in Net Assets........................................ F-30 Notes to Financials Statements............................................. F-64

Report of Independent Registered Public Accounting Firm To the Board of Directors of Genworth Life and Annuity Insurance Company and Contract Owners of Genworth Life & Annuity VA Separate Account 1: Opinion on the Financial Statements We have audited the accompanying statements of assets and liabilities of the subaccounts listed in the Appendix that comprise the Genworth Life & Annuity VA Separate Account 1 (the Separate Account) as of December 31, 2018, the related statements of operations for the year or period listed in the Appendix and changes in net assets for the years or period listed in the Appendix, and the related notes including the financial highlights in Note 6 (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2018, the results of its operations for the year or period listed in the Appendix, changes in its net assets for the years or period listed in the Appendix, and the financial highlights for each of the years or periods indicated in Note 6, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Such procedures also included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent of the underlying mutual funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ KPMG LLP We have served as the Separate Account's auditor since 1996. Richmond, Virginia April 17, 2019 F-1 Appendix Statement of assets and liabilities as of December 31, 2018, the related statement of operations for the year then ended, and the statements of changes in net assets for each of the years in the two-year period then ended. AB Variable Products Series Fund, Inc. AB Balanced Wealth Strategy Portfolio -- Class B AB Global Thematic Growth Portfolio -- Class B AB Growth and Income Portfolio -- Class B AB International Value Portfolio -- Class B AB Large Cap Growth Portfolio -- Class B AB Small Cap Growth Portfolio -- Class B AIM Variable Insurance Funds (Invesco Variable Insurance Funds) Invesco V.I. American Franchise Fund -- Series I shares Invesco V.I. American Franchise Fund -- Series II shares Invesco V.I. Comstock Fund -- Series II shares Invesco V.I. Core Equity Fund -- Series I shares Invesco V.I. Equity and Income Fund -- Series II shares Invesco V.I. Global Real Estate Fund -- Series II shares Invesco V.I. Government Securities Fund -- Series I shares Invesco V.I. International Growth Fund -- Series II shares Invesco V.I. Technology Fund -- Series I shares Invesco V.I. Value Opportunities Fund -- Series II shares American Century Variable Portfolios II, Inc. VP Inflation Protection Fund -- Class II American Century Variable Portfolios, Inc. VP Income & Growth Fund -- Class I VP International Fund -- Class I VP Ultra(R) Fund -- Class I VP Value Fund -- Class I BlackRock Variable Series Funds, Inc. BlackRock Advantage U.S. Total Market V.I. Fund -- Class III Shares (1) BlackRock Basic Value V.I. Fund -- Class III Shares BlackRock Global Allocation V.I. Fund -- Class III Shares BlackRock Large Cap Focus Growth V.I. Fund -- Class III Shares (1) Columbia Funds Variable Series Trust II CTIVP/SM/ -- Loomis Sayles Growth Fund -- Class 1 (1) Columbia Variable Portfolio -- Overseas Core Fund -- Class 2 (1) Deutsche DWS Variable Series I (1) DWS Capital Growth VIP -- Class B Shares (1) Deutsche DWS Variable Series II (1) DWS CROCI(R) U.S. VIP -- Class B Shares (1) DWS Small Mid Cap Value VIP -- Class B Shares (1) Dreyfus Dreyfus Investment Portfolios MidCap Stock Portfolio -- Initial Shares Dreyfus Variable Investment Fund -- Government Money Market Portfolio The Dreyfus Sustainable U.S. Equity Portfolio, Inc. -- Initial Shares (1) Eaton Vance Variable Trust VT Floating-Rate Income Fund Federated Insurance Series Federated High Income Bond Fund II -- Primary Shares Federated High Income Bond Fund II -- Service Shares Federated Kaufmann Fund II -- Service Shares Federated Managed Volatility Fund II -- Primary Shares F-2 Fidelity(R) Variable Insurance Products Fund VIP Asset Manager/SM/ Portfolio -- Initial Class VIP Asset Manager/SM/ Portfolio -- Service Class 2 VIP Balanced Portfolio -- Service Class 2 VIP Contrafund(R) Portfolio -- Initial Class VIP Contrafund(R) Portfolio -- Service Class 2 VIP Dynamic Capital Appreciation Portfolio -- Service Class 2 VIP Equity-Income Portfolio -- Initial Class VIP Equity-Income Portfolio -- Service Class 2 VIP Growth & Income Portfolio -- Initial Class VIP Growth & Income Portfolio -- Service Class 2 VIP Growth Opportunities Portfolio -- Initial Class VIP Growth Opportunities Portfolio -- Service Class 2 VIP Growth Portfolio -- Initial Class VIP Growth Portfolio -- Service Class 2 VIP Investment Grade Bond Portfolio -- Service Class 2 VIP Mid Cap Portfolio -- Initial Class VIP Mid Cap Portfolio -- Service Class 2 VIP Overseas Portfolio -- Initial Class VIP Value Strategies Portfolio -- Service Class 2 Franklin Templeton Variable Insurance Products Trust Franklin Founding Funds Allocation VIP Fund -- Class 2 Shares Franklin Income VIP Fund -- Class 2 Shares Franklin Large Cap Growth VIP Fund -- Class 2 Shares Franklin Mutual Shares VIP Fund -- Class 2 Shares Templeton Foreign VIP Fund -- Class 1 Shares Templeton Foreign VIP Fund -- Class 2 Shares Templeton Global Bond VIP Fund -- Class 1 Shares Templeton Growth VIP Fund -- Class 2 Shares Goldman Sachs Variable Insurance Trust Goldman Sachs Government Money Market Fund -- Service Shares Goldman Sachs Large Cap Value Fund -- Institutional Shares Goldman Sachs Mid Cap Value Fund -- Institutional Shares JPMorgan Insurance Trust JPMorgan Insurance Trust Core Bond Portfolio -- Class 1 JPMorgan Insurance Trust Mid Cap Value Portfolio -- Class 1 JPMorgan Insurance Trust Small Cap Core Portfolio -- Class 1 JPMorgan Insurance Trust U.S. Equity Portfolio -- Class 1 Janus Aspen Series Janus Henderson Balanced Portfolio -- Institutional Shares (1) Janus Henderson Balanced Portfolio -- Service Shares (1) Janus Henderson Enterprise Portfolio -- Institutional Shares (1) Janus Henderson Enterprise Portfolio -- Service Shares (1) Janus Henderson Flexible Bond Portfolio -- Institutional Shares (1) Janus Henderson Forty Portfolio -- Institutional Shares (1) Janus Henderson Forty Portfolio -- Service Shares (1) Janus Henderson Global Research Portfolio -- Institutional Shares (1) Janus Henderson Global Research Portfolio -- Service Shares (1) Janus Henderson Global Technology Portfolio -- Service Shares (1) Janus Henderson Overseas Portfolio -- Institutional Shares (1) Janus Henderson Overseas Portfolio -- Service Shares (1) Janus Henderson Research Portfolio -- Institutional Shares (1) Janus Henderson Research Portfolio -- Service Shares (1) F-3 Legg Mason Partners Variable Equity Trust ClearBridge Variable Aggressive Growth Portfolio -- Class II ClearBridge Variable Dividend Strategy Portfolio -- Class I ClearBridge Variable Dividend Strategy Portfolio -- Class II ClearBridge Variable Large Cap Value Portfolio -- Class I MFS(R) Variable Insurance Trust MFS(R) Investors Trust Series -- Service Class Shares MFS(R) New Discovery Series -- Service Class Shares MFS(R) Total Return Series -- Service Class Shares MFS(R) Utilities Series -- Service Class Shares MFS(R) Variable Insurance Trust II MFS(R) Massachusetts Investors Growth Stock Portfolio -- Service Class Shares MFS(R) Strategic Income Portfolio -- Service Class Shares Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA -- Non-Service Shares Oppenheimer Capital Appreciation Fund/VA -- Service Shares Oppenheimer Conservative Balanced Fund/VA -- Non-Service Shares Oppenheimer Conservative Balanced Fund/VA -- Service Shares Oppenheimer Discovery Mid Cap Growth Fund/VA -- Non-Service Shares Oppenheimer Discovery Mid Cap Growth Fund/VA -- Service Shares Oppenheimer Global Fund/VA -- Service Shares Oppenheimer Global Strategic Income Fund/VA -- Non-Service Shares Oppenheimer Main Street Fund/VA -- Service Shares Oppenheimer Main Street Small Cap Fund(R)/VA -- Service Shares Oppenheimer Total Return Bond Fund/VA -- Non-Service Shares (1) PIMCO Variable Insurance Trust All Asset Portfolio -- Advisor Class Shares High Yield Portfolio -- Administrative Class Shares International Bond Portfolio (U.S. Dollar Hedged) -- Administrative Class Shares (1) Long-Term U.S. Government Portfolio -- Administrative Class Shares Low Duration Portfolio -- Administrative Class Shares Total Return Portfolio -- Administrative Class Shares Rydex Variable Trust NASDAQ -- 100(R) Fund State Street Variable Insurance Series Funds, Inc. Income V.I.S. Fund -- Class 1 Shares Premier Growth Equity V.I.S. Fund -- Class 1 Shares Real Estate Securities V.I.S. Fund -- Class 1 Shares S&P 500(R) Index V.I.S. Fund -- Class 1 Shares Small-Cap Equity V.I.S. Fund -- Class 1 Shares Total Return V.I.S. Fund -- Class 1 Shares Total Return V.I.S. Fund -- Class 3 Shares U.S. Equity V.I.S. Fund -- Class 1 Shares The Alger Portfolios Alger Large Cap Growth Portfolio -- Class I-2 Shares Alger Small Cap Growth Portfolio -- Class I-2 Shares The Prudential Series Fund Jennison 20/20 Focus Portfolio -- Class II Shares Jennison Portfolio -- Class II Shares Natural Resources Portfolio -- Class II Shares SP International Growth Portfolio -- Class II Shares SP Prudential U.S. Emerging Growth Portfolio -- Class II Shares Wells Fargo Variable Trust Wells Fargo VT Omega Growth Fund -- Class 2 F-4 Statement of assets and liabilities as of December 31, 2018, the related statement of operations for the period from January 1, 2018 to August 17, 2018 (closure) and the statements of changes in net assets for the period from January 1, 2018 to August 17, 2018 (closure) and the year ended December 31, 2017. Federated Insurance Series Federated Managed Tail Risk Fund II -- Primary Shares (1)See Note 1 to the financial statements for the former name of the subaccount. F-5 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities December 31, 2018

AB Variable Products Series Fund, Inc. ---------------------------------------------------- AB AB Balanced Global AB AB Wealth Thematic Growth and International Consolidated Strategy Growth Income Value Total Portfolio -- Portfolio -- Portfolio -- Portfolio -- (unaudited) Class B Class B Class B Class B ------------------------------------------------------------------------------------------------------------ Assets: Investments at fair value (note 2b) $4,542,441,297 $12,219,802 $1,987,993 $40,689,400 $28,765,983 Dividend receivable 1,221,673 -- -- -- -- Receivable for units sold 1,037,945 -- 199 -- 18,367 Total assets 4,544,700,915 12,219,802 1,988,192 40,689,400 28,784,350 Liabilities: Accrued expenses payable to affiliate (note 4b) 616,969 1,780 252 5,131 4,015 Payable for units withdrawn 3,164,354 14,528 -- 127,344 -- Total liabilities 3,781,323 16,308 252 132,475 4,015 Net assets attributable to: Variable annuity contract owners in the accumulation period 3,986,151,656 11,144,296 1,987,940 40,377,004 27,488,349 Variable annuity contract owners in the annuitization period 554,767,936 1,059,198 -- 179,921 1,291,986 Net assets $4,540,919,592 $12,203,494 $1,987,940 $40,556,925 $28,780,335 Investments in securities at cost $4,748,128,769 $13,571,699 $1,555,784 $37,038,249 $32,392,179 Shares outstanding -- 1,224,429 75,503 1,488,274 2,340,601

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (continued) ---------------------------------------------------------------------------------- Invesco Invesco Invesco Invesco V.I. V.I. V.I. Invesco V.I. Global Government International V.I. Value Real Estate Securities Growth Technology Opportunities Fund -- Fund -- Fund -- Fund -- Fund -- Series II shares Series I shares Series II shares Series I shares Series II shares --------------------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $202,150 $2,818 $41,027,182 $32,700 $3,817,939 Dividend receivable -- -- -- -- -- Receivable for units sold 20 -- -- -- 3,608 Total assets 202,170 2,818 41,027,182 32,700 3,821,547 Liabilities: Accrued expenses payable to affiliate (note 4b) 31 -- 5,667 2 487 Payable for units withdrawn -- 1 79,019 -- -- Total liabilities 31 1 84,686 2 487 Net assets attributable to: Variable annuity contract owners in the accumulation period 135,589 2,817 39,232,644 32,698 3,811,315 Variable annuity contract owners in the annuitization period 66,550 -- 1,709,852 -- 9,745 Net assets $202,139 $2,817 $40,942,496 $32,698 $3,821,060 Investments in securities at cost $212,632 $2,964 $41,975,868 $34,953 $5,063,830 Shares outstanding 13,450 251 1,261,987 1,492 695,435

See accompanying notes to financial statements. F-6 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

AB Variable Products Series Fund, Inc. (continued) AIM Variable Insurance Funds (Invesco Variable Insurance Funds) ---------------------------------------------------------------------------------------------------------------- Invesco Invesco Invesco Invesco AB AB V.I. V.I. Invesco V.I. V.I. Large Cap Small Cap American American V.I. Core Equity and Growth Growth Franchise Franchise Comstock Equity Income Portfolio -- Portfolio -- Fund -- Fund -- Fund -- Fund -- Fund -- Class B Class B Series I shares Series II shares Series II shares Series I shares Series II shares ---------------------------------------------------------------------------------------------------------------- $21,757,218 $12,264,963 $15,186,618 $4,472,910 $21,940,029 $95,139,102 $17,566,552 -- -- -- -- -- -- -- -- 1,155 -- -- -- 207,485 13,300 21,757,218 12,266,118 15,186,618 4,472,910 21,940,029 95,346,587 17,579,852 2,702 1,507 1,862 562 2,801 13,402 2,707 4,615 -- 93 4,787 11,099 -- -- 7,317 1,507 1,955 5,349 13,900 13,402 2,707 21,731,352 12,242,258 15,180,581 4,454,588 21,896,762 89,870,500 17,003,293 18,549 22,353 4,082 12,973 29,367 5,462,685 573,852 $21,749,901 $12,264,611 $15,184,663 $4,467,561 $21,926,129 $95,333,185 $17,577,145 $20,098,476 $13,405,167 $15,459,240 $2,919,636 $21,210,095 $109,057,066 $18,109,895 444,842 816,032 265,733 81,474 1,366,129 3,074,955 1,095,172

American Century Variable Portfolios II, Inc. American Century Variable Portfolios, Inc. BlackRock Variable Series Funds, Inc. ---------------------------------------------------------------------------------------------------- BlackRock BlackRock VP VP Advantage Basic Inflation Income & VP VP VP U.S. Total Value Protection Growth International Ultra(R) Value Market V.I. Fund -- Fund -- Fund -- Fund -- Fund -- V.I. Fund -- Fund -- Class II Class I Class I Class I Class I Class III Shares Class III Shares ---------------------------------------------------------------------------------------------------- $36,565,180 $327,635 $511,149 $39,948 $58,061 $3,793,535 $27,742,118 -- -- -- -- -- -- -- -- 364 -- -- -- 3,188 33,607 36,565,180 327,999 511,149 39,948 58,061 3,796,723 27,775,725 5,235 49 75 (10) 6 484 3,838 172,870 -- 16 1 5 -- -- 178,105 49 91 (9) 11 484 3,838 34,056,052 231,977 377,199 39,957 58,050 3,792,014 26,517,698 2,331,023 95,973 133,859 -- -- 4,225 1,254,189 $36,387,075 $327,950 $511,058 $39,957 $58,050 $3,796,239 $27,771,887 $39,182,761 $324,228 $516,958 $31,199 $40,832 $4,575,644 $31,617,379 3,793,068 36,323 53,580 2,296 5,800 258,768 2,257,292

See accompanying notes to financial statements. F-7 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Deutsche DWS BlackRock Variable Series Funds, Columbia Funds Variable Series Variable Inc. (continued) Trust II Series I --------------------------------- ------------------------------ -------------- BlackRock Columbia BlackRock Large Cap CTIVP/SM/ -- Variable Global Focus Loomis Portfolio -- DWS Allocation Growth Sayles Overseas Capital V.I. V.I. Growth Core Growth Fund -- Fund -- Fund -- Fund -- VIP -- Class III Shares Class III Shares Class 1 Class 2 Class B Shares ------------------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $213,368,241 $4,798,088 $37,253,689 $12,123,382 $9,641 Dividend receivable -- -- -- -- -- Receivable for units sold -- -- 21,130 2,263 -- Total assets 213,368,241 4,798,088 37,274,819 12,125,645 9,641 Liabilities: Accrued expenses payable to affiliate (note 4b) 32,118 645 5,028 1,544 1 Payable for units withdrawn 106,058 16 -- -- 1 Total liabilities 138,176 661 5,028 1,544 2 Net assets attributable to: Variable annuity contract owners in the accumulation period 196,411,359 4,797,427 35,999,793 12,087,071 9,639 Variable annuity contract owners in the annuitization period 16,818,706 -- 1,269,998 37,030 -- Net assets $213,230,065 $4,797,427 $37,269,791 $12,124,101 $9,639 Investments in securities at cost $227,743,782 $5,204,229 $30,923,246 $12,678,976 $8,244 Shares outstanding 16,476,312 365,429 1,307,147 956,857 355

Fidelity(R) Variable Insurance Federated Insurance Series (continued) Products Fund ----------------------------------------------------------- ------------- Federated High Federated Federated VIP Income Federated Managed Managed Asset Bond Kaufmann Tail Risk Volatility Manager/SM/ Fund II -- Fund II -- Fund II -- Fund II -- Portfolio -- Service Shares Service Shares Primary Shares Primary Shares Initial Class ------------------------------------------------------------------------------------------------------------------ Assets: Investments at fair value (note 2b) $10,469,899 $16,660,579 $-- $8,555,699 $36,773,610 Dividend receivable -- -- -- -- -- Receivable for units sold -- -- -- 14,617 -- Total assets 10,469,899 16,660,579 -- 8,570,316 36,773,610 Liabilities: Accrued expenses payable to affiliate (note 4b) 1,327 2,107 -- 1,017 3,684 Payable for units withdrawn 4,119 100,628 -- -- 9,440 Total liabilities 5,446 102,735 -- 1,017 13,124 Net assets attributable to: Variable annuity contract owners in the accumulation period 10,443,798 16,513,419 -- 8,497,470 36,282,499 Variable annuity contract owners in the annuitization period 20,655 44,425 -- 71,829 477,987 Net assets $10,464,453 $16,557,844 $-- $8,569,299 $36,760,486 Investments in securities at cost $11,400,581 $14,372,991 $-- $8,941,441 $39,808,618 Shares outstanding 1,733,427 948,240 -- 891,219 2,688,129

See accompanying notes to financial statements. F-8 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Federated Eaton Vance Insurance Deutsche DWS Variable Series II Dreyfus Variable Trust Series -------------------------------------------------------------------------------------------------------- Dreyfus Dreyfus The Dreyfus DWS Investment Variable Sustainable Federated Small Portfolios Investment U.S. High DWS Mid Cap MidCap Fund -- Equity VT Income CROCI(R) Value Stock Government Portfolio, Floating-Rate Bond U.S. VIP -- VIP -- Portfolio -- Money Market Inc. -- Income Fund II -- Class B Shares Class B Shares Initial Shares Portfolio Initial Shares Fund Primary Shares -------------------------------------------------------------------------------------------------------- $43,435 $9,965 $88,363 $1,089,943 $5,898,301 $55,070,404 $8,710,844 -- -- -- 1,679 -- 208,797 -- -- -- -- -- -- -- -- 43,435 9,965 88,363 1,091,622 5,898,301 55,279,201 8,710,844 7 1 11 140 733 7,522 1,042 -- 2 -- 1 255 101,429 1,123 7 3 11 141 988 108,951 2,165 43,428 9,962 88,352 1,091,481 5,897,313 52,814,328 8,674,487 -- -- -- -- -- 2,355,922 34,192 $43,428 $9,962 $88,352 $1,091,481 $5,897,313 $55,170,250 $8,708,679 $43,466 $11,343 $89,052 $1,089,943 $6,219,630 $57,070,891 $9,552,991 3,217 817 5,260 1,089,943 191,940 6,173,812 1,435,065

Fidelity(R) Variable Insurance Products Fund (continued) ----------------------------------------------------------------------------------------------------------- VIP VIP Dynamic Asset VIP VIP VIP Capital VIP VIP Manager/SM/ Balanced Contrafund(R) Contrafund(R) Appreciation Equity-Income Equity-Income Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Service Class 2 Service Class 2 Initial Class Service Class 2 Service Class 2 Initial Class Service Class 2 ----------------------------------------------------------------------------------------------------------- $4,927,965 $57,202,946 $86,806,076 $96,367,377 $1,733,031 $66,564,689 $61,016,712 -- -- -- -- -- -- -- -- 24,484 -- 1,296 251 -- 34,559 4,927,965 57,227,430 86,806,076 96,368,673 1,733,282 66,564,689 61,051,271 746 8,633 10,101 12,444 219 7,459 8,098 934 -- 10,771 -- -- 3,580 -- 1,680 8,633 20,872 12,444 219 11,039 8,098 4,870,730 54,283,830 86,536,269 94,598,260 1,729,274 66,195,898 59,757,796 55,555 2,934,967 248,935 1,757,969 3,789 357,752 1,285,377 $4,926,285 $57,218,797 $86,785,204 $96,356,229 $1,733,063 $66,553,650 $61,043,173 $5,306,173 $55,754,008 $75,751,531 $91,315,669 $1,618,955 $69,721,788 $64,465,650 369,690 3,494,377 2,701,714 3,077,847 145,878 3,267,781 3,073,890

See accompanying notes to financial statements. F-9 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Fidelity(R) Variable Insurance Products Fund (continued) ------------------------------------------------------------------------- VIP VIP VIP VIP Growth & Growth & Growth Growth VIP Income Income Opportunities Opportunities Growth Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Initial Class Service Class 2 Initial Class Service Class 2 Initial Class ------------------------------------------------------------------------------------------------------------------ Assets: Investments at fair value (note 2b) $17,106,242 $12,730,750 $10,431,325 $7,034,761 $54,334,330 Dividend receivable -- -- -- -- -- Receivable for units sold 3,347 -- -- -- -- Total assets 17,109,589 12,730,750 10,431,325 7,034,761 54,334,330 Liabilities: Accrued expenses payable to affiliate (note 4b) 1,987 1,625 1,234 800 5,959 Payable for units withdrawn -- 27,099 1,667 2,369 4,826 Total liabilities 1,987 28,724 2,901 3,169 10,785 Net assets attributable to: Variable annuity contract owners in the accumulation period 17,056,215 12,697,923 10,415,580 7,031,592 54,063,792 Variable annuity contract owners in the annuitization period 51,387 4,103 12,844 -- 259,753 Net assets $17,107,602 $12,702,026 $10,428,424 $7,031,592 $54,323,545 Investments in securities at cost $13,999,805 $11,775,641 $7,213,266 $6,483,557 $39,334,714 Shares outstanding 882,675 672,162 274,436 187,794 860,810

Franklin Templeton Variable Insurance Products Trust (continued) -------------------------------------------------------------------------- Franklin Franklin Franklin Large Cap Mutual Templeton Templeton Income Growth Shares Foreign Foreign VIP Fund -- VIP Fund -- VIP Fund -- VIP Fund -- VIP Fund -- Class 2 Shares Class 2 Shares Class 2 Shares Class 1 Shares Class 2 Shares ------------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $235,454,387 $160,103 $11,797,699 $5,402,246 $561,582 Dividend receivable -- -- -- -- -- Receivable for units sold -- -- 10,615 -- -- Total assets 235,454,387 160,103 11,808,314 5,402,246 561,582 Liabilities: Accrued expenses payable to affiliate (note 4b) 38,104 20 1,485 652 82 Payable for units withdrawn 87,800 24 -- 2,266 51 Total liabilities 125,904 44 1,485 2,918 133 Net assets attributable to: Variable annuity contract owners in the accumulation period 215,255,086 160,059 11,757,646 5,391,937 427,159 Variable annuity contract owners in the annuitization period 20,073,397 -- 49,183 7,391 134,290 Net assets $235,328,483 $160,059 $11,806,829 $5,399,328 $561,449 Investments in securities at cost $242,011,111 $148,365 $11,799,013 $6,113,358 $627,390 Shares outstanding 15,973,839 8,562 678,029 415,238 44,080

See accompanying notes to financial statements. F-10 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Franklin Templeton Variable Insurance Fidelity(R) Variable Insurance Products Fund (continued) Products Trust ---------------------------------------------------------------------------------------------------------- Franklin VIP VIP Founding VIP Investment VIP VIP VIP Value Funds Growth Grade Bond Mid Cap Mid Cap Overseas Strategies Allocation Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- VIP Fund -- Service Class 2 Service Class 2 Initial Class Service Class 2 Initial Class Service Class 2 Class 2 Shares ---------------------------------------------------------------------------------------------------------- $18,736,652 $76,305,567 $8,816 $94,698,594 $13,287,332 $1,980,757 $52,904,627 -- -- -- -- -- -- -- -- -- -- 75,884 19 -- 79,881 18,736,652 76,305,567 8,816 94,774,478 13,287,351 1,980,757 52,984,508 2,365 10,821 1 12,435 1,476 247 8,231 17,017 418,354 1 -- -- 35 -- 19,382 429,175 2 12,435 1,476 282 8,231 18,664,583 71,535,706 8,814 92,449,848 13,240,941 1,966,518 45,212,795 52,687 4,340,686 -- 2,312,195 44,934 13,957 7,763,482 $18,717,270 $75,876,392 $8,814 $94,762,043 $13,285,875 $1,980,475 $52,976,277 $16,242,115 $79,924,328 $9,161 $101,925,775 $12,405,837 $2,275,404 $60,936,631 302,643 6,342,940 292 3,240,883 694,581 176,696 8,370,985

Franklin Templeton Variable Insurance Products Trust (continued) Goldman Sachs Variable Insurance Trust JPMorgan Insurance Trust ---------------------------------------------------------------------------------------------------------- Goldman Goldman Goldman JPMorgan JPMorgan Templeton Templeton Sachs Sachs Sachs Mid Insurance Insurance Global Growth Government Large Cap Cap Value Trust Trust Bond VIP VIP Money Market Value Fund -- Fund -- Core Bond Mid Cap Value Fund -- Fund -- Fund -- Institutional Institutional Portfolio -- Portfolio -- Class 1 Shares Class 2 Shares Service Shares Shares Shares Class 1 Class 1 ---------------------------------------------------------------------------------------------------------- $5,388,966 $7,351,205 $126,655,733 $5,490,129 $29,998,349 $2,665,744 $331,350 -- -- 202,763 -- -- -- -- -- 5,975 60,960 -- -- -- 529 5,388,966 7,357,180 126,919,456 5,490,129 29,998,349 2,665,744 331,879 594 931 16,339 646 3,619 400 50 68 -- -- 3,003 12,405 6,401 -- 662 931 16,339 3,649 16,024 6,801 50 5,287,252 7,279,087 125,971,075 5,414,858 29,827,826 1,826,929 232,478 101,052 77,162 932,042 71,622 154,499 832,014 99,351 $5,388,304 $7,356,249 $126,903,117 $5,486,480 $29,982,325 $2,658,943 $331,829 $5,493,821 $7,961,954 $126,655,733 $7,289,209 $34,533,627 $2,760,802 $345,455 307,239 602,064 126,655,733 715,793 2,327,257 250,070 32,613

See accompanying notes to financial statements. F-11 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

JPMorgan Insurance Trust (continued) Janus Aspen Series ------------------------- ------------------------------------------ JPMorgan JPMorgan Janus Janus Insurance Insurance Henderson Janus Henderson Trust Small Trust Balanced Henderson Enterprise Cap Core U.S. Equity Portfolio -- Balanced Portfolio -- Portfolio -- Portfolio -- Institutional Portfolio -- Institutional Class 1 Class 1 Shares Service Shares Shares ------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $92,569 $1,294,921 $63,150,834 $93,158,107 $41,315,126 Dividend receivable -- -- -- -- -- Receivable for units sold 239 2,321 -- -- 13,215 Total assets 92,808 1,297,242 63,150,834 93,158,107 41,328,341 Liabilities: Accrued expenses payable to affiliate (note 4b) 14 199 7,370 13,510 4,800 Payable for units withdrawn -- -- 35,427 36,405 -- Total liabilities 14 199 42,797 49,915 4,800 Net assets attributable to: Variable annuity contract owners in the accumulation period 61,719 833,541 62,538,244 88,765,022 41,074,141 Variable annuity contract owners in the annuitization period 31,075 463,502 569,793 4,343,170 249,400 Net assets $92,794 $1,297,043 $63,108,037 $93,108,192 $41,323,541 Investments in securities at cost $91,793 $1,218,830 $51,489,144 $78,429,503 $27,220,872 Shares outstanding 4,387 48,626 1,871,136 2,617,536 616,460

Legg Mason Partners Variable Janus Aspen Series (continued) Equity Trust --------------------------------------------------------- ------------ Janus Janus ClearBridge Henderson Janus Henderson Janus Variable Overseas Henderson Research Henderson Aggressive Portfolio -- Overseas Portfolio -- Research Growth Institutional Portfolio -- Institutional Portfolio -- Portfolio -- Shares Service Shares Shares Service Shares Class II --------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $18,321,848 $2,018,926 $35,838,461 $2,750,971 $5,229,136 Dividend receivable -- -- -- -- -- Receivable for units sold 14,354 -- -- 214 244 Total assets 18,336,202 2,018,926 35,838,461 2,751,185 5,229,380 Liabilities: Accrued expenses payable to affiliate (note 4b) 2,181 255 4,101 349 681 Payable for units withdrawn -- 32 14,433 -- -- Total liabilities 2,181 287 18,534 349 681 Net assets attributable to: Variable annuity contract owners in the accumulation period 18,232,865 2,018,639 35,710,492 2,748,977 5,168,519 Variable annuity contract owners in the annuitization period 101,156 -- 109,435 1,859 60,180 Net assets $18,334,021 $2,018,639 $35,819,927 $2,750,836 $5,228,699 Investments in securities at cost $25,422,523 $2,375,098 $27,542,960 $2,091,479 $5,906,156 Shares outstanding 685,955 78,741 1,063,456 83,692 230,054

See accompanying notes to financial statements. F-12 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Janus Aspen Series (continued) ---------------------------------------------------------------------------------------------------------------- Janus Janus Janus Janus Janus Henderson Janus Janus Henderson Henderson Henderson Henderson Flexible Bond Henderson Henderson Global Research Global Global Enterprise Portfolio -- Forty Portfolio -- Forty Portfolio -- Portfolio -- Research Technology Portfolio -- Institutional Institutional Service Institutional Portfolio -- Portfolio -- Service Shares Shares Shares Shares Shares Service Shares Service Shares ---------------------------------------------------------------------------------------------------------------- $4,958,533 $9,436,979 $31,615,197 $11,059,067 $35,426,788 $2,720,453 $7,443,217 -- -- -- -- -- -- -- -- -- 20,771 950 -- 161 -- 4,958,533 9,436,979 31,635,968 11,060,017 35,426,788 2,720,614 7,443,217 619 1,118 3,773 1,381 4,014 342 901 12,818 5,489 -- -- 1,533 -- 10,224 13,437 6,607 3,773 1,381 5,547 342 11,125 4,936,292 9,326,272 31,349,735 10,992,697 35,204,848 2,709,571 7,377,608 8,804 104,100 282,460 65,939 216,393 10,701 54,484 $4,945,096 $9,430,372 $31,632,195 $11,058,636 $35,421,241 $2,720,272 $7,432,092 $3,487,794 $10,139,482 $30,635,908 $11,573,795 $23,501,775 $1,820,023 $5,471,421 78,719 841,836 898,159 333,607 751,682 58,948 665,167

Legg Mason Partners Variable Equity Trust (continued) MFS(R) Variable Insurance Trust ------------------------------------------------------------------------------------------------------------ ClearBridge ClearBridge ClearBridge Variable Variable Variable MFS(R) MFS(R) New MFS(R) MFS(R) Dividend Dividend Large Cap Investors Discovery Total Return Utilities Strategy Strategy Value Trust Series -- Series -- Series -- Series -- Portfolio -- Portfolio -- Portfolio -- Service Service Service Service Class I Class II Class I Class Shares Class Shares Class Shares Class Shares ------------------------------------------------------------------------------------------------------------ $3,888,668 $7,452,113 $12,735,826 $4,767,963 $11,105,954 $37,932,279 $13,018,773 -- -- -- -- -- -- -- -- -- 550 -- -- -- -- 3,888,668 7,452,113 12,736,376 4,767,963 11,105,954 37,932,279 13,018,773 462 1,085 1,612 601 1,394 5,833 1,640 1,839 2,533 -- 256 18,356 8,166 1,038 2,301 3,618 1,612 857 19,750 13,999 2,678 3,886,367 7,212,201 12,715,549 4,759,324 11,079,118 36,164,386 12,999,013 -- 236,294 19,215 7,782 7,086 1,753,894 17,082 $3,886,367 $7,448,495 $12,734,764 $4,767,106 $11,086,204 $37,918,280 $13,016,095 $3,182,923 $6,556,182 $13,030,740 $3,945,597 $11,374,281 $37,394,649 $11,925,739 222,591 425,106 712,693 178,709 698,049 1,774,195 451,101

See accompanying notes to financial statements. F-13 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

MFS(R) Variable Insurance Trust II Oppenheimer Variable Account Funds -------------------------- ---------------------------------------- MFS(R) Massachusetts MFS(R) Oppenheimer Oppenheimer Investors Strategic Capital Oppenheimer Conservative Growth Stock Income Appreciation Capital Balanced Portfolio -- Portfolio -- Fund/VA -- Appreciation Fund/VA -- Service Service Non-Service Fund/VA -- Non-Service Class Shares Class Shares Shares Service Shares Shares ------------------------------------------------------------------------------------------------------------ Assets: Investments at fair value (note 2b) $5,962,309 $25,749 $22,214,455 $3,754,210 $9,406,546 Dividend receivable -- -- -- -- -- Receivable for units sold -- -- -- 11,060 -- Total assets 5,962,309 25,749 22,214,455 3,765,270 9,406,546 Liabilities: Accrued expenses payable to affiliate (note 4b) 766 3 2,545 469 1,046 Payable for units withdrawn 202 -- 2,830 -- 290 Total liabilities 968 3 5,375 469 1,336 Net assets attributable to: Variable annuity contract owners in the accumulation period 5,846,901 25,746 22,069,643 3,764,801 9,302,553 Variable annuity contract owners in the annuitization period 114,440 -- 139,437 -- 102,657 Net assets $5,961,341 $25,746 $22,209,080 $3,764,801 $9,405,210 Investments in securities at cost $5,949,110 $27,137 $20,380,045 $3,687,691 $9,358,611 Shares outstanding 343,056 2,802 458,030 78,573 651,874

Oppenheimer Variable Account Funds (continued) PIMCO Variable Insurance Trust ------------- --------------------------------------------------------- International Oppenheimer Bond Long-Term Total Return Portfolio U.S. Bond All Asset High Yield (U.S. Dollar Government Fund/VA -- Portfolio -- Portfolio -- Hedged) -- Portfolio -- Non-Service Advisor Administrative Administrative Administrative Shares Class Shares Class Shares Class Shares Class Shares ---------------------------------------------------------------------------------------------------------------- Assets: Investments at fair value (note 2b) $8,096,167 $5,903,989 $40,404,744 $2,163,441 $34,774,357 Dividend receivable -- -- 174,102 2,986 70,264 Receivable for units sold -- -- -- -- -- Total assets 8,096,167 5,903,989 40,578,846 2,166,427 34,844,621 Liabilities: Accrued expenses payable to affiliate (note 4b) 942 761 5,527 278 4,765 Payable for units withdrawn 1,409 1,040 94,698 73 193,467 Total liabilities 2,351 1,801 100,225 351 198,232 Net assets attributable to: Variable annuity contract owners in the accumulation period 8,001,333 5,902,188 38,966,363 2,145,643 33,247,098 Variable annuity contract owners in the annuitization period 92,483 -- 1,512,258 20,433 1,399,291 Net assets $8,093,816 $5,902,188 $40,478,621 $2,166,076 $34,646,389 Investments in securities at cost $8,974,895 $6,333,007 $42,601,278 $2,087,773 $36,571,081 Shares outstanding 1,080,930 587,462 5,550,102 199,579 2,992,630

See accompanying notes to financial statements. F-14 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

Oppenheimer Variable Account Funds (continued) --------------------------------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Discovery Mid Oppenheimer Global Strategic Oppenheimer Conservative Cap Growth Discovery Mid Oppenheimer Income Oppenheimer Main Street Balanced Fund/VA -- Cap Growth Global Fund/VA -- Main Street Small Cap Fund/VA -- Non-Service Fund/VA -- Fund/VA -- Non-Service Fund/VA -- Fund(R)/VA -- Service Shares Shares Service Shares Service Shares Shares Service Shares Service Shares --------------------------------------------------------------------------------------------------------- $16,921,717 $19,643,841 $6,941,500 $59,130,600 $2,757,515 $106,582,255 $27,440,563 -- -- -- -- -- -- -- -- -- -- -- -- 211,877 61,738 16,921,717 19,643,841 6,941,500 59,130,600 2,757,515 106,794,132 27,502,301 2,608 2,157 871 7,646 317 14,868 3,708 24,399 1,192 268 25,466 1,600 -- -- 27,007 3,349 1,139 33,112 1,917 14,868 3,708 15,739,139 19,458,676 6,940,361 58,220,736 2,700,235 100,853,529 26,622,211 1,155,571 181,816 -- 876,752 55,363 5,925,735 876,382 $16,894,710 $19,640,492 $6,940,361 $59,097,488 $2,755,598 $106,779,264 $27,498,593 $16,320,551 $17,340,859 $7,632,434 $57,837,180 $3,151,656 $104,868,040 $29,316,447 1,188,323 286,145 107,771 1,575,556 591,741 4,020,455 1,369,973

PIMCO Variable Insurance Trust Rydex Variable (continued) Trust State Street Variable Insurance Series Funds, Inc. --------------------------------------------------------------------------------------------------------- Premier Low Total Growth Real Estate S&P 500(R) Duration Return Equity Securities Index Portfolio -- Portfolio -- Income V.I.S. V.I.S. V.I.S. Administrative Administrative NASDAQ -- V.I.S. Fund -- Fund -- Fund -- Fund -- Class Shares Class Shares 100(R) Fund Class 1 Shares Class 1 Shares Class 1 Shares Class 1 Shares --------------------------------------------------------------------------------------------------------- $44,183,073 $165,580,344 $4,177,752 $15,797,862 $24,964,110 $40,393,562 $130,231,946 115,824 445,258 -- -- -- -- -- -- -- -- -- -- 16,673 6,564 44,298,897 166,025,602 4,177,752 15,797,862 24,964,110 40,410,235 130,238,510 6,186 22,285 519 1,945 3,106 5,180 15,828 146,909 697,243 83,979 13,476 40,760 -- -- 153,095 719,528 84,498 15,421 43,866 5,180 15,828 42,736,347 160,178,949 4,093,254 15,732,946 24,610,319 39,554,269 129,698,981 1,409,455 5,127,125 -- 49,495 309,925 850,786 523,701 $44,145,802 $165,306,074 $4,093,254 $15,782,441 $24,920,244 $40,405,055 $130,222,682 $45,121,914 $173,506,358 $3,771,933 $16,512,061 $25,455,456 $46,802,128 $99,948,782 4,383,241 15,799,651 114,271 1,427,088 302,559 3,625,993 3,415,472

See accompanying notes to financial statements. F-15 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

The Alger State Street Variable Insurance Series Funds, Inc. (continued) Portfolios ----------------------------------------------------------- ---------------- Small-Cap Total Total U.S. Alger Equity Return Return Equity Large Cap V.I.S. V.I.S. V.I.S. V.I.S. Growth Fund -- Fund -- Fund -- Fund -- Portfolio -- Class 1 Shares Class 1 Shares Class 3 Shares Class 1 Shares Class I-2 Shares ------------------------------------------------------------------------------------------------------------------------ Assets: Investments at fair value (note 2b) $26,218,158 $721,568,187 $467,164,815 $19,517,120 $24,729,528 Dividend receivable -- -- -- -- -- Receivable for units sold -- -- 48,741 -- -- Total assets 26,218,158 721,568,187 467,213,556 19,517,120 24,729,528 Liabilities: Accrued expenses payable to affiliate (note 4b) 3,277 96,834 72,949 2,425 2,931 Payable for units withdrawn 28,722 287,976 -- 8,122 24,442 Total liabilities 31,999 384,810 72,949 10,547 27,373 Net assets attributable to: Variable annuity contract owners in the accumulation period 26,103,454 342,222,845 403,332,096 18,416,019 24,563,372 Variable annuity contract owners in the annuitization period 82,705 378,960,532 63,808,511 1,090,554 138,783 Net assets $26,186,159 $721,183,377 $467,140,607 $19,506,573 $24,702,155 Investments in securities at cost $31,004,744 $873,474,240 $554,655,126 $19,601,500 $23,874,489 Shares outstanding 2,332,576 51,320,639 33,345,097 512,664 480,839

See accompanying notes to financial statements. F-16 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Assets and Liabilities -- Continued December 31, 2018

The Alger Portfolios Wells Fargo (continued) The Prudential Series Fund Variable Trust --------------------------------------------------------------------------------------------------------------- SP Prudential Wells Fargo Alger Jennison SP U.S. VT Small Cap 20/20 Natural International Emerging Omega Growth Focus Jennison Resources Growth Growth Growth Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Fund -- Class I-2 Shares Class II Shares Class II Shares Class II Shares Class II Shares Class II Shares Class 2 --------------------------------------------------------------------------------------------------------------- $17,044,389 $4,893,093 $4,864,843 $32,872,313 $171 $15,475 $6,896,779 -- -- -- -- -- -- -- -- 1,169 -- 10,001 -- -- -- 17,044,389 4,894,262 4,864,843 32,882,314 171 15,475 6,896,779 1,997 619 615 4,586 -- 2 858 658 -- 193 -- 1 -- 269 2,655 619 808 4,586 1 2 1,127 16,905,337 4,893,643 4,857,337 31,194,382 170 15,473 6,895,652 136,397 -- 6,698 1,683,346 -- -- -- $17,041,734 $4,893,643 $4,864,035 $32,877,728 $170 $15,473 $6,895,652 $17,637,164 $2,825,514 $3,536,831 $39,372,121 $177 $7,723 $6,998,042 727,460 173,699 82,905 1,546,205 25 1,208 273,356

See accompanying notes to financial statements. F-17 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations

AB Variable Products Series Fund, Inc. -------------------------------------------------------- AB AB Balanced Global AB AB Wealth Thematic Growth and International Consolidated Strategy Growth Income Value Total Portfolio -- Portfolio -- Portfolio -- Portfolio -- (unaudited) Class B Class B Class B Class B ------------- ------------ ------------ ------------ ------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 ---------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $88,865,377 $231,040 $-- $313,091 $382,884 Mortality and expense risk and administrative charges (note 4a) 87,599,651 252,291 69,479 670,903 584,480 Net investment income (expense) 1,265,726 (21,251) (69,479) (357,812) (201,596) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 132,754,040 56,788 554,019 1,887,660 835,566 Change in unrealized appreciation (depreciation) (937,668,929) (2,162,254) (876,156) (9,594,665) (9,474,041) Capital gain distributions 450,704,511 1,033,969 -- 4,759,282 -- Net realized and unrealized gain (loss) on investments (354,210,378) (1,071,497) (322,137) (2,947,723) (8,638,475) Increase (decrease) in net assets from operations $(352,944,652) $(1,092,748) $(391,616) $(3,305,535) $(8,840,071)

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (continued) --------------------------------------------------------------------------------------- Invesco Invesco Invesco Invesco V.I. V.I. V.I. Invesco V.I. Global Government International V.I. Value Real Estate Securities Growth Technology Opportunities Fund -- Fund -- Fund -- Fund -- Fund -- Series II shares Series I shares Series II shares Series I shares Series II shares ---------------- --------------- ---------------- --------------- ---------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 -------------------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $8,373 $61 $848,676 $-- $-- Mortality and expense risk and administrative charges (note 4a) 4,248 28 801,930 161 79,061 Net investment income (expense) 4,125 33 46,746 (161) (79,061) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 208 (141) 1,270,099 3,984 (36,419) Change in unrealized appreciation (depreciation) (25,469) 67 (9,860,811) (2,252) (1,408,906) Capital gain distributions 2,792 -- 332,892 -- 514,647 Net realized and unrealized gain (loss) on investments (22,469) (74) (8,257,820) 1,732 (930,678) Increase (decrease) in net assets from operations $(18,344) $(41) $(8,211,074) $1,571 $(1,009,739)

See accompanying notes to financial statements. F-18 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

AB Variable Products Series Fund, Inc. (continued) AIM Variable Insurance Funds (Invesco Variable Insurance Funds) ------------------------------------------------------------------------------------------------------------------- Invesco Invesco Invesco Invesco AB AB V.I. V.I. Invesco V.I. V.I. Large Cap Small Cap American American V.I. Core Equity and Growth Growth Franchise Franchise Comstock Equity Income Portfolio -- Portfolio -- Fund -- Fund -- Fund -- Fund -- Fund -- Class B Class B Series I shares Series II shares Series II shares Series I shares Series II shares ------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------- $-- $-- $-- $-- $372,497 $971,196 $400,203 368,317 214,196 303,679 83,572 424,422 1,691,633 388,004 (368,317) (214,196) (303,679) (83,572) (51,925) (720,437) 12,199 995,959 143,099 1,043,040 500,560 1,354,027 56,105 385,215 (3,160,197) (1,086,745) (2,439,276) (929,679) (7,310,704) (18,119,672) (3,568,996) 2,775,229 765,462 1,239,126 332,332 2,562,095 6,955,804 889,187 610,991 (178,184) (157,110) (96,787) (3,394,582) (11,107,763) (2,294,594) $242,674 $(392,380) $(460,789) $(180,359) $(3,446,507) $(11,828,200) $(2,282,395)

American Century Variable Portfolios II, Inc. American Century Variable Portfolios, Inc. BlackRock Variable Series Funds, Inc. ------------------------------------------------------------------------------------------------------------------- BlackRock BlackRock VP VP Advantage Basic Inflation Income & VP VP VP U.S. Total Value Protection Growth International Ultra(R) Value Market V.I. Fund -- Fund -- Fund -- Fund -- Fund -- V.I. Fund -- Fund -- Class II Class I Class I Class I Class I Class III Shares Class III Shares ------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------- $1,060,875 $9,086 $7,422 $113 $1,086 $65,636 $474,309 657,188 9,024 10,523 827 965 70,551 564,580 403,687 62 (3,101) (714) 121 (4,915) (90,271) (590,405) 40,500 17,951 4,480 2,483 31,047 711,400 (1,603,969) (104,574) (151,554) (7,971) (9,170) (911,308) (6,763,144) -- 42,990 38,384 4,357 4 560,215 3,350,790 (2,194,374) (21,084) (95,219) 866 (6,683) (320,046) (2,700,954) $(1,790,687) $(21,022) $(98,320) $152 $(6,562) $(324,961) $(2,791,225)

See accompanying notes to financial statements. F-19 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Deutsche DWS BlackRock Variable Series Columbia Funds Variable Series Variable Funds, Inc. (continued) Trust II Series I ----------------------------------- ---------------------------- -------------- BlackRock Columbia BlackRock Large Cap Variable Global Focus CTIVP/SM/ -- Portfolio -- DWS Allocation Growth Loomis Sayles Overseas Capital V.I. V.I. Growth Core Growth Fund -- Fund -- Fund -- Fund -- VIP -- Class III Shares Class III Shares Class 1 Class 2 Class B Shares ---------------- ---------------- -------------- ------------- -------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 --------------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $2,017,796 $-- $-- $388,347 $50 Mortality and expense risk and administrative charges (note 4a) 4,622,898 83,783 881,508 243,926 156 Net investment income (expense) (2,605,102) (83,783) (881,508) 144,421 (106) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 2,944,861 162,756 7,791,681 381,739 65 Change in unrealized appreciation (depreciation) (33,182,511) (598,255) (6,881,234) (3,299,700) (1,246) Capital gain distributions 10,272,259 536,743 -- -- 958 Net realized and unrealized gain (loss) on investments (19,965,391) 101,244 910,447 (2,917,961) (223) Increase (decrease) in net assets from operations $(22,570,493) $17,461 $28,939 $(2,773,540) $(329)

Fidelity(R) Variable Insurance Federated Insurance Series (continued) Products Fund ---------------------------------------------------------------- -------------------- Federated High Federated Federated VIP Income Federated Managed Managed Asset Bond Kaufmann Tail Risk Volatility Manager/SM/ Fund II -- Fund II -- Fund II -- Fund II -- Portfolio -- Service Shares Service Shares Primary Shares Primary Shares Initial Class -------------- -------------- --------------- -------------- -------------------- Year Ended Year Ended Period from Year Ended Year Ended December 31, December 31, January 1 to December 31, December 31, 2018 2018 August 17, 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $950,517 $-- $163,722 $153,459 $675,828 Mortality and expense risk and administrative charges (note 4a) 184,174 302,728 43,853 99,798 508,782 Net investment income (expense) 766,343 (302,728) 119,869 53,661 167,046 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) (73,395) 892,856 (694,390) 56,054 30,007 Change in unrealized appreciation (depreciation) (1,253,412) (1,401,812) 513,322 (1,062,153) (4,161,857) Capital gain distributions -- 1,462,648 -- -- 1,387,996 Net realized and unrealized gain (loss) on investments (1,326,807) 953,692 (181,068) (1,006,099) (2,743,854) Increase (decrease) in net assets from operations $(560,464) $650,964 $(61,199) $(952,438) $(2,576,808)

See accompanying notes to financial statements. F-20 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Eaton Vance Federated Deutsche DWS Variable Series II Dreyfus Variable Trust Insurance Series ------------------------------------------------------------------------------------------------------------------- Dreyfus Dreyfus DWS Investment Variable The Dreyfus Federated DWS Small Portfolios Investment Sustainable High CROCI(R) Mid Cap MidCap Fund -- U.S. VT Income U.S. Value Stock Government Equity Floating-Rate Bond VIP -- VIP -- Portfolio -- Money Market Portfolio, Inc. -- Income Fund II -- Class B Shares Class B Shares Initial Shares Portfolio Initial Shares Fund Primary Shares ------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------- $1,064 $117 $607 $13,024 $112,157 $1,960,811 $845,238 903 196 1,557 15,832 98,201 852,533 150,327 161 (79) (950) (2,808) 13,956 1,108,278 694,911 803 99 1,229 -- 15,229 74,762 (113,844) (10,337) (4,153) (30,641) -- (1,579,490) (2,290,816) (1,039,799) 3,476 2,059 12,456 -- 1,186,313 -- -- (6,058) (1,995) (16,956) -- (377,948) (2,216,054) (1,153,643) $(5,897) $(2,074) $(17,906) $(2,808) $(363,992) $(1,107,776) $(458,732)

Fidelity(R) Variable Insurance Products Fund (continued) ------------------------------------------------------------------------------------------------------------------ VIP VIP Dynamic Asset VIP VIP VIP Capital VIP VIP Manager/SM/ Balanced Contrafund(R) Contrafund(R) Appreciation Equity-Income Equity-Income Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Service Class 2 Service Class 2 Initial Class Service Class 2 Service Class 2 Initial Class Service Class 2 ------------------------------------------------------------------------------------------------------------------ Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------ $79,454 $811,350 $708,216 $516,250 $6,883 $1,692,209 $1,409,589 106,367 1,220,329 1,486,291 2,038,303 34,253 1,073,600 1,171,929 (26,913) (408,979) (778,075) (1,522,053) (27,370) 618,609 237,660 1,105 1,816,145 3,894,585 10,245,894 142,997 820,275 820,838 (574,028) (8,495,996) (19,011,710) (27,527,175) (453,751) (12,275,710) (11,446,611) 194,956 3,436,112 9,037,248 12,185,195 218,500 3,704,720 3,469,438 (377,967) (3,243,739) (6,079,877) (5,096,086) (92,254) (7,750,715) (7,156,335) $(404,880) $(3,652,718) $(6,857,952) $(6,618,139) $(119,624) $(7,132,106) $(6,918,675)

See accompanying notes to financial statements. F-21 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Fidelity(R) Variable Insurance Products Fund (continued) ------------------------------------------------------------------------------ VIP VIP VIP VIP Growth & Growth & Growth Growth VIP Income Income Opportunities Opportunities Growth Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Initial Class Service Class 2 Initial Class Service Class 2 Initial Class ------------- --------------- ------------- --------------- ------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 ----------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $71,463 $35,053 $13,405 $3,691 $151,290 Mortality and expense risk and administrative charges (note 4a) 292,064 300,104 161,295 72,419 870,484 Net investment income (expense) (220,601) (265,051) (147,890) (68,728) (719,194) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 927,904 969,894 885,473 203,438 3,700,028 Change in unrealized appreciation (depreciation) (3,857,744) (3,705,644) (254,069) (76,850) (12,118,407) Capital gain distributions 1,203,098 1,056,008 625,253 244,594 8,924,979 Net realized and unrealized gain (loss) on investments (1,726,742) (1,679,742) 1,256,657 371,182 506,600 Increase (decrease) in net assets from operations $(1,947,343) $(1,944,793) $1,108,767 $302,454 $(212,594)

Franklin Templeton Variable Insurance Products Trust (continued) ------------------------------------------------------------------------------- Franklin Franklin Franklin Large Cap Mutual Templeton Templeton Income Growth Shares Foreign Foreign VIP Fund -- VIP Fund -- VIP Fund -- VIP Fund -- VIP Fund -- Class 2 Shares Class 2 Shares Class 2 Shares Class 1 Shares Class 2 Shares -------------- -------------- -------------- -------------- -------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------------ Investment income and expense: Income -- Ordinary dividends $13,149,218 $-- $333,650 $196,339 $16,780 Mortality and expense risk and administrative charges (note 4a) 5,434,700 2,816 224,306 99,447 11,398 Net investment income (expense) 7,714,518 (2,816) 109,344 96,892 5,382 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 2,723,078 3,736 434,049 21,418 3,229 Change in unrealized appreciation (depreciation) (26,254,304) (18,700) (2,460,891) (1,261,325) (121,160) Capital gain distributions -- 14,339 519,534 -- -- Net realized and unrealized gain (loss) on investments (23,531,226) (625) (1,507,308) (1,239,907) (117,931) Increase (decrease) in net assets from operations $(15,816,708) $(3,441) $(1,397,964) $(1,143,015) $(112,549)

See accompanying notes to financial statements. F-22 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Franklin Templeton Variable Insurance Products Fidelity(R) Variable Insurance Products Fund (continued) Trust ----------------------------------------------------------------------------------------------------------------- Franklin VIP VIP Founding VIP Investment VIP VIP VIP Value Funds Growth Grade Bond Mid Cap Mid Cap Overseas Strategies Allocation Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- VIP Fund -- Service Class 2 Service Class 2 Initial Class Service Class 2 Initial Class Service Class 2 Class 2 Shares ----------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ----------------------------------------------------------------------------------------------------------------- $8,717 $1,948,709 $73 $471,827 $242,120 $17,219 $1,922,626 334,392 1,759,565 86 1,937,770 221,772 37,700 1,207,211 (325,675) 189,144 (13) (1,465,943) 20,348 (20,481) 715,415 1,082,722 (2,221,583) 447 3,075,326 621,430 23,535 (320,027) (4,002,479) (1,784,533) (3,050) (30,139,403) (3,213,278) (574,262) (8,777,795) 3,013,336 744,429 1,108 10,860,719 -- 110,093 1,505,639 93,579 (3,261,687) (1,495) (16,203,358) (2,591,848) (440,634) (7,592,183) $(232,096) $(3,072,543) $(1,508) $(17,669,301) $(2,571,500) $(461,115) $(6,876,768)

Franklin Templeton Variable Insurance Products Trust (continued) Goldman Sachs Variable Insurance Trust JPMorgan Insurance Trust --------------------------------------------------------------------------------------------------------------- Goldman Sachs JPMorgan JPMorgan Templeton Government Goldman Sachs Goldman Sachs Insurance Insurance Global Templeton Money Large Cap Mid Cap Trust Trust Mid Cap Bond Growth Market Value Fund -- Value Fund -- Core Bond Value VIP Fund -- VIP Fund -- Fund -- Institutional Institutional Portfolio -- Portfolio -- Class 1 Shares Class 2 Shares Service Shares Shares Shares Class 1 Class 1 --------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 --------------------------------------------------------------------------------------------------------------- $-- $222,843 $1,732,220 $80,394 $456,812 $78,717 $2,755 75,425 163,022 1,871,260 96,037 542,538 57,093 6,043 (75,425) 59,821 (139,040) (15,643) (85,726) 21,624 (3,288) (20,840) 195,546 -- (227,028) 674,811 (52,967) 3,528 144,549 (2,695,737) -- (709,378) (8,768,742) (41,694) (55,547) -- 943,778 -- 344,499 4,142,802 5,364 4,604 123,709 (1,556,413) -- (591,907) (3,951,129) (89,297) (47,415) $48,284 $(1,496,592) $(139,040) $(607,550) $(4,036,855) $(67,673) $(50,703)

See accompanying notes to financial statements. F-23 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

JPMorgan Insurance Trust (continued) Janus Aspen Series --------------------------- --------------------------------------------- JPMorgan JPMorgan Janus Janus Insurance Insurance Henderson Janus Henderson Trust Small Trust U.S. Balanced Henderson Enterprise Cap Core Equity Portfolio -- Balanced Portfolio -- Portfolio -- Portfolio -- Institutional Portfolio -- Institutional Class 1 Class 1 Shares Service Shares Shares ------------ ------------ ------------- -------------- ------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 ------------------------------------------------------------------------------------------------------------------ Investment income and expense: Income -- Ordinary dividends $743 $8,967 $1,500,780 $1,841,477 $127,070 Mortality and expense risk and administrative charges (note 4a) 3,040 23,665 1,003,039 1,851,397 698,686 Net investment income (expense) (2,297) (14,698) 497,741 (9,920) (571,616) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 34,228 66,733 3,159,139 4,593,136 3,729,475 Change in unrealized appreciation (depreciation) (48,958) (297,146) (5,813,102) (8,321,339) (5,733,086) Capital gain distributions 12,748 127,399 1,939,579 2,726,490 2,247,583 Net realized and unrealized gain (loss) on investments (1,982) (103,014) (714,384) (1,001,713) 243,972 Increase (decrease) in net assets from operations $(4,279) $(117,712) $(216,643) $(1,011,633) $(327,644)

Legg Mason Partners Variable Janus Aspen Series (continued) Equity Trust ------------------------------------------------------------- ------------ Janus Janus ClearBridge Henderson Janus Henderson Janus Variable Overseas Henderson Research Henderson Aggressive Portfolio -- Overseas Portfolio -- Research Growth Institutional Portfolio -- Institutional Portfolio -- Portfolio -- Shares Service Shares Shares Service Shares Class II ------------- -------------- ------------- -------------- ------------ Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 -------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $394,122 $40,774 $231,772 $11,908 $22,696 Mortality and expense risk and administrative charges (note 4a) 328,230 38,257 610,463 53,332 97,955 Net investment income (expense) 65,892 2,517 (378,691) (41,424) (75,259) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) (657,016) (4,737) 2,582,864 283,711 155,052 Change in unrealized appreciation (depreciation) (3,014,728) (400,619) (5,402,574) (493,130) (1,043,203) Capital gain distributions -- -- 2,075,139 167,464 389,738 Net realized and unrealized gain (loss) on investments (3,671,744) (405,356) (744,571) (41,955) (498,413) Increase (decrease) in net assets from operations $(3,605,852) $(402,839) $(1,123,262) $(83,379) $(573,672)

See accompanying notes to financial statements. F-24 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Janus Aspen Series (continued) --------------------------------------------------------------------------------------------------------------- Janus Janus Janus Janus Janus Henderson Henderson Janus Henderson Janus Henderson Henderson Flexible Bond Forty Henderson Global Research Henderson Global Enterprise Portfolio -- Portfolio -- Forty Portfolio -- Global Research Technology Portfolio -- Institutional Institutional Portfolio -- Institutional Portfolio -- Portfolio -- Service Shares Shares Shares Service Shares Shares Service Shares Service Shares --------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 --------------------------------------------------------------------------------------------------------------- $7,547 $310,572 $423,875 $160,974 $468,217 $31,863 $96,718 87,312 149,485 539,417 203,279 590,142 53,455 129,771 (79,765) 161,087 (115,542) (42,305) (121,925) (21,592) (33,053) 293,264 (194,443) 975,810 289,076 2,644,152 355,728 943,334 (559,124) (246,001) (4,916,888) (1,776,114) (5,553,141) (582,087) (1,143,352) 277,844 -- 4,554,060 1,729,486 -- -- 292,001 11,984 (440,444) 612,982 242,448 (2,908,989) (226,359) 91,983 $(67,781) $(279,357) $497,440 $200,143 $(3,030,914) $(247,951) $58,930

Legg Mason Partners Variable Equity Trust (continued) MFS(R) Variable Insurance Trust ---------------------------------------------------------------------------------------------------------------- ClearBridge ClearBridge ClearBridge Variable Variable Variable MFS(R) MFS(R) New MFS(R) Total MFS(R) Dividend Dividend Large Cap Investors Discovery Return Utilities Strategy Strategy Value Trust Series -- Series -- Series -- Series -- Portfolio -- Portfolio -- Portfolio -- Service Service Service Service Class I Class II Class I Class Shares Class Shares Class Shares Class Shares ---------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ---------------------------------------------------------------------------------------------------------------- $68,705 $114,713 $221,205 $24,887 $-- $836,350 $119,053 66,819 163,166 236,439 88,900 223,344 819,065 221,327 1,886 (48,453) (15,234) (64,013) (223,344) 17,285 (102,274) 336,392 677,016 549,834 333,758 841,632 1,163,011 239,861 (879,805) (1,651,733) (2,943,595) (888,614) (2,618,971) (6,367,996) (281,271) 267,719 492,522 926,251 250,644 1,867,510 1,925,845 54,427 (275,694) (482,195) (1,467,510) (304,212) 90,171 (3,279,140) 13,017 $(273,808) $(530,648) $(1,482,744) $(368,225) $(133,173) $(3,261,855) $(89,257)

See accompanying notes to financial statements. F-25 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

MFS(R) Variable Insurance Trust II Oppenheimer Variable Account Funds ---------------------------- ------------------------------------------- MFS(R) Massachusetts MFS(R) Oppenheimer Oppenheimer Investors Strategic Capital Oppenheimer Conservative Growth Stock Income Appreciation Capital Balanced Portfolio -- Portfolio -- Fund/VA -- Appreciation Fund/VA -- Service Service Non-Service Fund/VA -- Non-Service Class Shares Class Shares Shares Service Shares Shares ------------- ------------ ------------ -------------- ------------ Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 ----------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $24,099 $1,062 $90,032 $-- $196,507 Mortality and expense risk and administrative charges (note 4a) 118,670 409 389,082 68,461 136,108 Net investment income (expense) (94,571) 653 (299,050) (68,461) 60,399 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 282,513 (159) 1,292,426 186,360 136,917 Change in unrealized appreciation (depreciation) (543,473) (1,525) (4,506,704) (730,285) (1,077,671) Capital gain distributions 425,878 -- 2,117,435 329,816 232,364 Net realized and unrealized gain (loss) on investments 164,918 (1,684) (1,096,843) (214,109) (708,390) Increase (decrease) in net assets from operations $70,347 $(1,031) $(1,395,893) $(282,570) $(647,991)

Oppenheimer Variable Account Funds (continued) PIMCO Variable Insurance Trust ------------- ------------------------------------------------------------- Oppenheimer International Total Return Bond Portfolio Long-Term U.S. Bond All Asset High Yield (U.S. Dollar Government Fund/VA -- Portfolio -- Portfolio -- Hedged) -- Portfolio -- Non-Service Advisor Administrative Administrative Administrative Shares Class Shares Class Shares Class Shares Class Shares ------------- ------------ -------------- -------------- -------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 --------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $288,713 $196,479 $2,178,119 $29,213 $819,991 Mortality and expense risk and administrative charges (note 4a) 124,292 103,354 710,742 35,080 571,038 Net investment income (expense) 164,421 93,125 1,467,377 (5,867) 248,953 Net realized and unrealized gain (loss) on investments: Net realized gain (loss) (248,449) (9,308) (140,682) 11,214 (913,409) Change in unrealized appreciation (depreciation) (154,432) (539,026) (3,166,751) (219) (929,237) Capital gain distributions -- -- -- 7,042 169,237 Net realized and unrealized gain (loss) on investments (402,881) (548,334) (3,307,433) 18,037 (1,673,409) Increase (decrease) in net assets from operations $(238,460) $(455,209) $(1,840,056) $12,170 $(1,424,456)

See accompanying notes to financial statements. F-26 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

Oppenheimer Variable Account Funds (continued) ----------------------------------------------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Conservative Discovery Mid Discovery Mid Oppenheimer Global Strategic Oppenheimer Main Street Balanced Cap Growth Cap Growth Global Income Main Street Small Cap Fund/VA -- Fund/VA -- Fund/VA -- Fund/VA -- Fund/VA -- Fund/VA -- Fund(R)/VA -- Service Shares Non-Service Shares Service Shares Service Shares Non-Service Shares Service Shares Service Shares ----------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ----------------------------------------------------------------------------------------------------------------------- $332,687 $-- $-- $670,315 $152,538 $932,739 $23,792 366,707 323,370 129,345 1,317,567 43,480 1,922,333 643,454 (34,020) (323,370) (129,345) (647,252) 109,058 (989,594) (619,662) 473,483 1,264,794 40,993 7,383,293 (61,866) 4,531,072 3,002,414 (2,286,726) (5,608,443) (1,755,094) (22,841,217) (228,149) (24,012,941) (10,233,356) 457,140 3,260,360 1,186,865 6,251,962 -- 9,089,198 5,192,879 (1,356,103) (1,083,289) (527,236) (9,205,962) (290,015) (10,392,671) (2,038,063) $(1,390,123) $(1,406,659) $(656,581) $(9,853,214) $(180,957) $(11,382,265) $(2,657,725)

PIMCO Variable Insurance Trust Rydex Variable (continued) Trust State Street Variable Insurance Series Funds, Inc. --------------------------------------------------------------------------------------------------------------- Premier Real S&P Growth Estate 500(R) Low Duration Total Return Income Equity Securities Index Portfolio -- Portfolio -- V.I.S. V.I.S. V.I.S. V.I.S. Administrative Administrative NASDAQ -- Fund -- Fund -- Fund -- Fund -- Class Shares Class Shares 100(R) Fund Class 1 Shares Class 1 Shares Class 1 Shares Class 1 Shares --------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 --------------------------------------------------------------------------------------------------------------- $838,395 $4,874,630 $-- $354,499 $39,658 $1,096,699 $2,491,431 745,955 3,211,681 80,687 253,616 458,108 716,050 2,272,554 92,440 1,662,949 (80,687) 100,883 (418,450) 380,649 218,877 (275,603) (2,827,887) 432,561 (90,545) 1,080,172 (1,175,007) 10,877,487 (408,769) (5,774,875) (684,435) (543,978) (5,109,267) (3,054,175) (28,541,135) -- 2,037,138 214,254 -- 3,572,415 548,280 9,449,465 (684,372) (6,565,624) (37,620) (634,523) (456,680) (3,680,902) (8,214,183) $(591,932) $(4,902,675) $(118,307) $(533,640) $(875,130) $(3,300,253) $(7,995,306)

See accompanying notes to financial statements. F-27 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

The Alger State Street Variable Insurance Series Funds, Inc. (continued) Portfolios --------------------------------------------------------------- ---------------- Small-Cap Total Total U.S. Alger Equity Return Return Equity Large Cap V.I.S. V.I.S. V.I.S. V.I.S. Growth Fund -- Fund -- Fund -- Fund -- Portfolio -- Class 1 Shares Class 1 Shares Class 3 Shares Class 1 Shares Class I-2 Shares -------------- -------------- -------------- -------------- ---------------- Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 -------------------------------------------------------------------------------------------------------------------------- Investment income and expense: Income -- Ordinary dividends $-- $17,290,104 $9,883,046 $186,484 $-- Mortality and expense risk and administrative charges (note 4a) 514,838 13,215,766 10,611,893 356,768 432,230 Net investment income (expense) (514,838) 4,074,338 (728,847) (170,284) (432,230) Net realized and unrealized gain (loss) on investments: Net realized gain (loss) 724,347 12,732,046 15,553,068 780,546 1,563,183 Change in unrealized appreciation (depreciation) (7,359,690) (239,009,728) (163,129,738) (3,395,008) (5,132,052) Capital gain distributions 4,013,077 159,884,782 104,312,914 1,915,201 4,601,589 Net realized and unrealized gain (loss) on investments (2,622,266) (66,392,900) (43,263,756) (699,261) 1,032,720 Increase (decrease) in net assets from operations $(3,137,104) $(62,318,562) $(43,992,603) $(869,545) $600,490

See accompanying notes to financial statements. F-28 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Operations -- Continued

The Alger Portfolios Wells Fargo (continued) The Prudential Series Fund Variable Trust ---------------------------------------------------------------------------------------------------------------------- SP Alger Jennison SP Prudential Wells Fargo Small Cap 20/20 Natural International U.S. Emerging VT Omega Growth Focus Jennison Resources Growth Growth Growth Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Portfolio -- Fund -- Class I-2 Shares Class II Shares Class II Shares Class II Shares Class II Shares Class II Shares Class 2 ---------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2018 2018 2018 2018 2018 2018 ---------------------------------------------------------------------------------------------------------------------- $-- $-- $-- $-- $-- $-- $-- 300,962 93,564 89,816 587,092 9 279 123,070 (300,962) (93,564) (89,816) (587,092) (9) (279) (123,070) 510,941 519,319 412,707 (79,944) 64 381 206,865 (632,555) (769,924) (404,187) (6,820,702) (94) (1,770) (914,057) 754,262 -- -- -- -- -- 821,699 632,648 (250,605) 8,520 (6,900,646) (30) (1,389) 114,507 $331,686 $(344,169) $(81,296) $(7,487,738) $(39) $(1,668) $(8,563)

See accompanying notes to financial statements. F-29 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets

AB Variable Products Series Fund, Inc. -------------- -------------- --------------------------------------------------- AB AB Consolidated Balanced Wealth Global Thematic Total Strategy Portfolio -- Growth Portfolio -- (unaudited) Class B Class B ------------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $1,265,726 $(3,875,929) $(21,251) $(319) $(69,479) $(51,696) Net realized gain (loss) on investments 132,754,040 134,157,658 56,788 (30,854) 554,019 203,077 Change in unrealized appreciation (depreciation) on investments (937,668,929) 435,316,978 (2,162,254) 1,876,473 (876,156) 952,642 Capital gain distribution 450,704,511 147,536,972 1,033,969 126,002 -- -- Increase (decrease) in net assets from operations (352,944,652) 713,135,679 (1,092,748) 1,971,302 (391,616) 1,104,023 From capital transactions (note 4): Net premiums 14,558,650 17,488,517 6,598 19,874 6,980 120 Death benefits (78,740,946) (120,401,805) (100,214) (73,278) (24,229) 4,461 Surrenders (595,802,607) (624,583,438) (1,309,503) (1,578,637) (513,949) (406,570) Administrative expenses (21,910,104) (22,691,160) (103,761) (106,744) (16,028) (16,846) Transfers between subaccounts (including fixed account), net (2,662,214) 8,172,071 (506,118) (524,762) (2,124,590) 2,228,248 Increase (decrease) in net assets from capital transactions (684,557,221) (742,015,815) (2,012,998) (2,263,547) (2,671,816) 1,809,413 Increase (decrease) in net assets (1,037,501,873) (28,880,136) (3,105,746) (292,245) (3,063,432) 2,913,436 Net assets at beginning of year 5,578,421,465 5,607,301,601 15,309,240 15,601,485 5,051,372 2,137,936 Net assets at end of year $4,540,919,592 $5,578,421,465 $12,203,494 $15,309,240 $1,987,940 $5,051,372 Change in units (note 5): Units purchased 51,358,636 57,514,127 35,383 25,018 11,601 136,930 Units redeemed (88,156,878) (100,995,724) (187,646) (207,650) (138,426) (42,248) Net increase (decrease) in units from capital transactions with contract owners (36,798,242) (43,481,597) (152,263) (182,632) (126,825) 94,682

See accompanying notes to financial statements. F-30 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

AB Variable Products Series Fund, Inc. (continued) ---------------------------------------------------------------------------------------------------------- AB AB AB AB Growth and International Large Cap Small Cap Income Portfolio -- Value Portfolio -- Growth Portfolio -- Growth Portfolio -- Class B Class B Class B Class B ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $(357,812) $(125,101) $(201,596) $(125,145) $(368,317) $(315,695) $(214,196) $(92,323) 1,887,660 2,953,505 835,566 3,622,193 995,959 789,156 143,099 (305,147) (9,594,665) 153,131 (9,474,041) 7,032,431 (3,160,197) 3,682,992 (1,086,745) 2,036,054 4,759,282 3,763,756 -- -- 2,775,229 1,192,055 765,462 -- (3,305,535) 6,745,291 (8,840,071) 10,529,479 242,674 5,348,508 (392,380) 1,638,584 85,388 36,458 53,845 74,807 451,538 480,452 463,453 38,748 (433,883) (623,709) (45,245) (124,859) (412,999) (272,151) (150,514) (21,671) (3,499,481) (4,262,541) (4,037,887) (5,625,385) (1,738,233) (1,869,212) (885,065) (669,272) (100,093) (100,453) (262,765) (368,035) (105,963) (82,193) (73,480) (24,615) 2,963,330 49,543 4,511,849 (39,899,627) 993,012 (71,892) 6,738,428 (43,430) (984,739) (4,900,702) 219,797 (45,943,099) (812,645) (1,814,996) 6,092,822 (720,240) (4,290,274) 1,844,589 (8,620,274) (35,413,620) (569,971) 3,533,512 5,700,442 918,344 44,847,199 43,002,610 37,400,609 72,814,229 22,319,872 18,786,360 6,564,169 5,645,825 $40,556,925 $44,847,199 $28,780,335 $37,400,609 $21,749,901 $22,319,872 $12,264,611 $6,564,169 286,296 210,792 1,118,776 369,881 170,019 122,883 356,386 50,004 (327,946) (436,938) (1,016,326) (6,691,625) (220,778) (243,070) (91,945) (86,839) (41,650) (226,146) 102,450 (6,321,744) (50,759) (120,187) 264,441 (36,835)

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) ------------------------- Invesco V.I. American Franchise Fund -- Series I shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(303,679) $(172,411) 1,043,040 443,287 (2,439,276) 418,223 1,239,126 1,526,786 (460,789) 2,215,885 526,963 182,199 (88,423) (132,667) (1,385,091) (999,681) (88,830) (44,376) (5,797,335) 14,400,719 (6,832,716) 13,406,194 (7,293,505) 15,622,079 22,478,168 6,856,089 $15,184,663 $22,478,168 80,443 864,141 (432,720) (112,236) (352,277) 751,905

See accompanying notes to financial statements. F-31 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (continued) ----------------------------------------------------------------------------- Invesco Invesco Invesco V.I. American V.I. Comstock V.I. Core Franchise Fund -- Fund -- Equity Fund -- Series II shares Series II shares Series I shares ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(83,572) $(79,258) $(51,925) $(192,980) $(720,437) $(638,004) Net realized gain (loss) on investments 500,560 279,258 1,354,027 6,555,646 56,105 731,816 Change in unrealized appreciation (depreciation) on investments (929,679) 511,408 (7,310,704) (3,671,387) (18,119,672) 5,144,656 Capital gain distribution 332,332 413,919 2,562,095 1,212,461 6,955,804 4,905,132 Increase (decrease) in net assets from operations (180,359) 1,125,327 (3,446,507) 3,903,740 (11,828,200) 10,143,600 From capital transactions (note 4): Net premiums -- -- 398 63,132 181,787 203,841 Death benefits 2,881 (1,236) (53,463) (98,361) (186,029) (218,921) Surrenders (799,634) (335,908) (2,927,561) (4,941,334) (10,724,674) (10,735,368) Administrative expenses (19,907) (17,700) (120,829) (265,741) (873,996) (779,928) Transfers between subaccounts (including fixed account), net (12,108) 69,701 (866,603) (54,396,541) 24,513,436 5,385,983 Increase (decrease) in net assets from capital transactions (828,768) (285,143) (3,968,058) (59,638,845) 12,910,524 (6,144,393) Increase (decrease) in net assets (1,009,127) 840,184 (7,414,565) (55,735,105) 1,082,324 3,999,207 Net assets at beginning of year 5,476,688 4,636,504 29,340,694 85,075,799 94,250,861 90,251,654 Net assets at end of year $4,467,561 $5,476,688 $21,926,129 $29,340,694 $95,333,185 $94,250,861 Change in units (note 5): Units purchased 5,289 7,972 57,065 208,023 2,298,933 866,805 Units redeemed (35,306) (22,233) (201,322) (3,840,447) (1,482,125) (1,230,926) Net increase (decrease) in units from capital transactions with contract owners (30,017) (14,261) (144,257) (3,632,424) 816,808 (364,121)

See accompanying notes to financial statements. F-32 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (continued) --------------------------------------------------------------------------------------------------------------------------------- Invesco Invesco Invesco Invesco Invesco V.I. Equity and V.I. Global Real V.I. Government V.I. International V.I. Technology Income Fund -- Estate Fund -- Securities Fund -- Growth Fund -- Fund -- Series II shares Series II shares Series I shares Series II shares Series I shares --------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------------------------------- $12,199 $(88,101) $4,125 $2,817 $33 $75 $46,746 $(161,223) $(161) $-- 385,215 415,575 208 3,766 (141) (1) 1,270,099 1,460,137 3,984 -- (3,568,996) 1,077,645 (25,469) 14,822 67 (13) (9,860,811) 7,456,114 (2,252) -- 889,187 392,210 2,792 4,013 -- -- 332,892 -- -- -- (2,282,395) 1,797,329 (18,344) 25,418 (41) 61 (8,211,074) 8,755,028 1,571 -- 8,228 17,893 -- -- 80 240 86,881 61,333 -- -- (63,874) (41,759) (265) (3,118) -- -- (52,369) (86,410) -- -- (1,692,175) (1,665,500) (16,522) (27,566) (3,050) -- (5,079,170) (5,030,022) -- -- (141,536) (134,047) (350) (400) -- -- (370,485) (349,818) -- -- 64,458 1,075,602 (943) (13,019) 243 364 2,921,860 11,523,627 31,127 -- (1,824,899) (747,811) (18,080) (44,103) (2,727) 604 (2,493,283) 6,118,710 31,127 -- (4,107,294) 1,049,518 (36,424) (18,685) (2,768) 665 (10,704,357) 14,873,738 32,698 -- 21,684,439 20,634,921 238,563 257,248 5,585 4,920 51,646,853 36,773,115 -- -- $17,577,145 $21,684,439 $202,139 $238,563 $2,817 $5,585 $40,942,496 $51,646,853 $32,698 $-- 176,203 156,277 2,063 1,685 19 35 708,580 1,477,047 7,800 -- (291,676) (203,323) (3,394) (4,666) (180) -- (888,373) (872,437) (3,286) -- (115,473) (47,046) (1,331) (2,981) (161) 35 (179,793) 604,610 4,514 --

See accompanying notes to financial statements. F-33 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) American Century American Century (continued) Variable Portfolios II, Inc. Variable Portfolios, Inc. ------------------------- ---------------------------- ------------------------- Invesco V.I. Value VP VP Opportunities Fund -- Inflation Protection Income & Growth Series II shares Fund -- Class II Fund -- Class I ------------------------- ---------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(79,061) $(85,554) $403,687 $324,631 $62 $2,842 Net realized gain (loss) on investments (36,419) (92,883) (590,405) (316,675) 40,500 35,220 Change in unrealized appreciation (depreciation) on investments (1,408,906) 969,564 (1,603,969) 726,409 (104,574) 53,781 Capital gain distribution 514,647 -- -- -- 42,990 17,429 Increase (decrease) in net assets from operations (1,009,739) 791,127 (1,790,687) 734,365 (21,022) 109,272 From capital transactions (note 4): Net premiums 1,604 35,107 66,835 46,438 -- -- Death benefits (2,057) (16,159) (53,672) (113,267) (398) (8,098) Surrenders (629,690) (582,320) (4,192,686) (4,449,527) (35,249) (69,222) Administrative expenses (17,612) (18,052) (336,246) (322,886) (505) (513) Transfers between subaccounts (including fixed account), net (3,732) (519,954) 5,078,034 (855,139) (204,202) (182,085) Increase (decrease) in net assets from capital transactions (651,487) (1,101,378) 562,265 (5,694,381) (240,354) (259,918) Increase (decrease) in net assets (1,661,226) (310,251) (1,228,422) (4,960,016) (261,376) (150,646) Net assets at beginning of year 5,482,286 5,792,537 37,615,497 42,575,513 589,326 739,972 Net assets at end of year $3,821,060 $5,482,286 $36,387,075 $37,615,497 $327,950 $589,326 Change in units (note 5): Units purchased 12,816 18,668 1,005,959 319,934 3,312 1,948 Units redeemed (45,283) (78,829) (963,632) (793,730) (14,960) (15,270) Net increase (decrease) in units from capital transactions with contract owners (32,467) (60,161) 42,327 (473,796) (11,648) (13,322)

See accompanying notes to financial statements. F-34 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

American Century Variable Portfolios, Inc. (continued) BlackRock Variable Series Funds, Inc. --------------------------------------------------------------------------------------------------------------------------------- BlackRock BlackRock Advantage Basic VP U.S. Total Market Value International VP Ultra(R) VP Value V.I. Fund -- V.I. Fund -- Fund -- Class I Fund -- Class I Fund -- Class I Class III Shares Class III Shares --------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------------------------------- $(3,101) $(5,719) $(714) $(694) $121 $132 $(4,915) $(34,390) $(90,271) $(294,112) 17,951 30,842 4,480 4,421 2,483 1,447 31,047 384,333 711,400 1,508,241 (151,554) 127,547 (7,971) 6,149 (9,170) 3,072 (911,308) (960,764) (6,763,144) (812,724) 38,384 -- 4,357 2,308 4 -- 560,215 1,139,347 3,350,790 1,386,547 (98,320) 152,670 152 12,184 (6,562) 4,651 (324,961) 528,526 (2,791,225) 1,787,952 -- -- -- -- -- -- 67,092 80,717 54,268 67,631 (517) (6,215) -- -- -- -- (29,592) (535,752) (62,974) (111,051) (44,554) (57,377) (2,430) (2,741) (5,046) (2,929) (306,558) (412,946) (3,578,735) (4,588,814) (1,370) (1,230) (288) (302) (175) (175) (19,604) (18,796) (282,626) (345,092) 34,527 26,036 (1,866) (10,647) 878 198 (158,878) (562,168) (1,311,045) (17,189,830) (11,914) (38,786) (4,584) (13,690) (4,343) (2,906) (447,540) (1,448,945) (5,181,112) (22,167,156) (110,234) 113,884 (4,432) (1,506) (10,905) 1,745 (772,501) (920,419) (7,972,337) (20,379,204) 621,292 507,408 44,389 45,895 68,955 67,210 4,568,740 5,489,159 35,744,224 56,123,428 $511,058 $621,292 $39,957 $44,389 $58,050 $68,955 $3,796,239 $4,568,740 $27,771,887 $35,744,224 6,035 10,915 408 37 31 7 10,509 21,745 237,494 305,280 (6,177) (12,133) (576) (683) (170) (111) (29,486) (89,995) (523,677) (1,743,341) (142) (1,218) (168) (646) (139) (104) (18,977) (68,250) (286,183) (1,438,061)

See accompanying notes to financial statements. F-35 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Columbia Funds Variable BlackRock Variable Series Funds, Inc. (continued) Series Trust II ----------------------------------------------------- ------------------------- BlackRock BlackRock Large Cap Global Focus CTIVP/SM/ -- Allocation Growth Loomis Sayles V.I. Fund -- V.I. Fund -- Growth Fund -- Class III Shares Class III Shares Class 1 --------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets From operations: Net investment income (expense) $(2,605,102) $(1,706,180) $(83,783) $(52,938) $(881,508) $(840,057) Net realized gain (loss) on investments 2,944,861 2,108,688 162,756 117,033 7,791,681 2,354,943 Change in unrealized appreciation (depreciation) on investments (33,182,511) 27,565,058 (598,255) 74,788 (6,881,234) 12,269,071 Capital gain distribution 10,272,259 3,154,966 536,743 661,700 -- -- Increase (decrease) in net assets from operations (22,570,493) 31,122,532 17,461 800,583 28,939 13,783,957 From capital transactions (note 4): Net premiums 202,504 213,770 495 7,240 106,897 46,530 Death benefits (873,197) (1,232,399) (32,001) (100,421) (31,020) (61,803) Surrenders (25,485,445) (29,518,882) (416,198) (134,277) (5,601,455) (5,804,665) Administrative expenses (1,993,575) (2,121,892) (18,905) (9,691) (413,557) (372,039) Transfers between subaccounts (including fixed account), net (10,555,429) (8,840,468) 1,116,939 666,113 (20,318,621) 35,320,018 Increase (decrease) in net assets from capital transactions (38,705,142) (41,499,871) 650,330 428,964 (26,257,756) 29,128,041 Increase (decrease) in net assets (61,275,635) (10,377,339) 667,791 1,229,547 (26,228,817) 42,911,998 Net assets at beginning of year 274,505,700 284,883,039 4,129,636 2,900,089 63,498,608 20,586,610 Net assets at end of year $213,230,065 $274,505,700 $4,797,427 $4,129,636 $37,269,791 $63,498,608 Change in units (note 5): Units purchased 781,945 551,881 60,806 46,532 431,772 4,098,302 Units redeemed (3,459,061) (3,527,103) (35,747) (26,458) (2,240,397) (1,417,973) Net increase (decrease) in units from capital transactions with contract owners (2,677,116) (2,975,222) 25,059 20,074 (1,808,625) 2,680,329

See accompanying notes to financial statements. F-36 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Columbia Funds Variable Deutsche DWS Variable Series Trust II (continued) Series I Deutsche DWS Variable Series II ---------------------------------------------------------------------------------------------------------- Columbia Variable Portfolio -- DWS DWS DWS Overseas Core Capital CROCI(R) Small Mid Cap Fund -- Growth VIP -- U.S. VIP -- Value VIP -- Class 2 Class B Shares Class B Shares Class B Shares ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $144,421 $44,142 $(106) $(93) $161 $(319) $(79) $(168) 381,739 294,450 65 42 803 1,486 99 1,955 (3,299,700) 3,185,521 (1,246) 1,318 (10,337) 7,946 (4,153) (1,055) -- -- 958 694 3,476 -- 2,059 284 (2,773,540) 3,524,113 (329) 1,961 (5,897) 9,113 (2,074) 1,016 3,308 2,990 -- -- -- -- -- -- 3,478 (7,186) -- -- -- -- -- -- (1,723,708) (2,025,459) -- -- (1,899) (766) (477) 1,503 (49,475) (50,322) (28) (24) (33) 91 (23) 155 6,749 (237,375) (71) (36) 1,327 (11,444) 540 (11,235) (1,759,648) (2,317,352) (99) (60) (605) (12,119) 40 (9,577) (4,533,188) 1,206,761 (428) 1,901 (6,502) (3,006) (2,034) (8,561) 16,657,289 15,450,528 10,067 8,166 49,930 52,936 11,996 20,557 $12,124,101 $16,657,289 $9,639 $10,067 $43,428 $49,930 $9,962 $11,996 107,066 112,241 -- -- 345 55 50 34 (259,046) (332,840) (5) (3) (371) (1,029) (46) (309) (151,980) (220,599) (5) (3) (26) (974) 4 (275)

Dreyfus ------------------------- Dreyfus Investment Portfolios MidCap Stock Portfolio -- Initial Shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(950) $(417) 1,229 1,505 (30,641) 11,000 12,456 1,655 (17,906) 13,743 -- -- -- -- (5,012) (5,138) (720) (714) (2) 1 (5,734) (5,851) (23,640) 7,892 111,992 104,100 $88,352 $111,992 -- -- (173) (187) (173) (187)

See accompanying notes to financial statements. F-37 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Dreyfus (continued) Eaton Vance Variable Trust --------------------------------------------------- ------------------------- Dreyfus The Dreyfus Variable Investment Sustainable U.S. VT Fund -- Government Equity Portfolio, Inc. -- Floating-Rate Money Market Portfolio Initial Shares Income Fund ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(2,808) $(10,069) $13,956 $(23,673) $1,108,278 $775,333 Net realized gain (loss) on investments -- -- 15,229 28,177 74,762 83,330 Change in unrealized appreciation (depreciation) on investments -- -- (1,579,490) 368,997 (2,290,816) (41,051) Capital gain distribution -- -- 1,186,313 394,652 -- -- Increase (decrease) in net assets from operations (2,808) (10,069) (363,992) 768,153 (1,107,776) 817,612 From capital transactions (note 4): Net premiums -- -- -- 203 243,042 860,830 Death benefits (371,260) (508,009) -- 3,460 (63,553) (380,812) Surrenders (465,352) (303,433) (90,237) (47,478) (4,481,465) (3,720,499) Administrative expenses (1,775) (823) (26,390) (23,060) (373,286) (299,793) Transfers between subaccounts (including fixed account), net 946,029 1,123,523 2,555 (6,862) 13,924,826 4,675,246 Increase (decrease) in net assets from capital transactions 107,642 311,258 (114,072) (73,737) 9,249,564 1,134,972 Increase (decrease) in net assets 104,834 301,189 (478,064) 694,416 8,141,788 1,952,584 Net assets at beginning of year 986,647 685,458 6,375,377 5,680,961 47,028,462 45,075,878 Net assets at end of year $1,091,481 $986,647 $5,897,313 $6,375,377 $55,170,250 $47,028,462 Change in units (note 5): Units purchased 145,659 182,329 1,051 100 2,112,318 741,456 Units redeemed (134,451) (149,399) (9,913) (6,185) (1,356,192) (641,621) Net increase (decrease) in units from capital transactions with contract owners 11,208 32,930 (8,862) (6,085) 756,126 99,835

See accompanying notes to financial statements. F-38 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Federated Insurance Series --------------------------------------------------------------------------------------------------------------------------------- Federated Federated Federated Federated Federated High Income High Income Kaufmann Managed Tail Risk Managed Volatility Bond Fund II -- Bond Fund II -- Fund II -- Fund II -- Fund II -- Primary Shares Service Shares Service Shares Primary Shares Primary Shares --------------------------------------------------------------------------------------------------------------------------------- Period from Year ended Year ended Year ended Year ended Year ended Year ended January 1 to Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, August 17, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------------------------------- $694,911 $629,243 $766,343 $738,207 $(302,728) $(287,010) $119,869 $9,873 $53,661 $146,153 (113,844) 31,945 (73,395) 54,399 892,856 452,975 (694,390) (144,286) 56,054 54,941 (1,039,799) (24,919) (1,253,412) (90,227) (1,401,812) 2,058,351 513,322 598,990 (1,062,153) 665,679 -- -- -- -- 1,462,648 2,087,781 -- -- -- -- (458,732) 636,269 (560,464) 702,379 650,964 4,312,097 (61,199) 464,577 (952,438) 866,773 360 2,875 11,884 33,899 3,621 5,580 152 7,167 468 360 (249,874) (309,208) (980) (23,082) 27,623 (9,668) (34,710) (160,862) (48,346) (83,169) (1,293,506) (1,562,315) (1,484,424) (1,178,745) (2,266,919) (1,658,871) (428,226) (503,979) (951,698) (567,163) (14,288) (16,000) (36,335) (45,280) (80,572) (78,222) (5,463) (8,398) (9,965) (8,838) (708,304) 420,211 (570,532) (841,078) (748,837) (1,312,145) (4,528,099) (24,936) 4,814,311 (122,211) (2,265,612) (1,464,437) (2,080,387) (2,054,286) (3,065,084) (3,053,326) (4,996,346) (691,008) 3,804,770 (781,021) (2,724,344) (828,168) (2,640,851) (1,351,907) (2,414,120) 1,258,771 (5,057,545) (226,431) 2,852,332 85,752 11,433,023 12,261,191 13,105,304 14,457,211 18,971,964 17,713,193 5,057,545 5,283,976 5,716,967 5,631,215 $8,708,679 $11,433,023 $10,464,453 $13,105,304 $16,557,844 $18,971,964 $-- $5,057,545 $8,569,299 $5,716,967 7,816 26,219 13,110 30,199 23,001 7,870 4,541 15,627 235,462 4,467 (88,287) (72,244) (105,045) (119,531) (105,378) (112,441) (439,089) (77,361) (67,937) (41,930) (80,471) (46,025) (91,935) (89,332) (82,377) (104,571) (434,548) (61,734) 167,525 (37,463)

See accompanying notes to financial statements. F-39 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Fidelity(R) Variable Insurance Products Fund ----------------------------------------------------------------------------- VIP VIP VIP Asset Manager/SM/ Asset Manager/SM Balanced Portfolio -- /Portfolio -- Portfolio -- Initial Class Service Class 2 Service Class 2 ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $167,046 $271,362 $(26,913) $(21,524) $(408,979) $(418,316) Net realized gain (loss) on investments 30,007 98,303 1,105 (14,473) 1,816,145 1,656,279 Change in unrealized appreciation (depreciation) on investments (4,161,857) (32,575) (574,028) (57,852) (8,495,996) 6,000,747 Capital gain distribution 1,387,996 5,017,973 194,956 836,573 3,436,112 1,786,068 Increase (decrease) in net assets from operations (2,576,808) 5,355,063 (404,880) 742,724 (3,652,718) 9,024,778 From capital transactions (note 4): Net premiums 34,817 86,999 12,636 408 355,579 61,880 Death benefits (409,667) (879,039) (20,551) -- (207,041) 77,308 Surrenders (4,272,713) (4,180,102) (494,904) (1,053,708) (6,847,398) (6,155,516) Administrative expenses (34,337) (38,371) (11,207) (11,108) (340,261) (354,530) Transfers between subaccounts (including fixed account), net (300,078) (776,107) (214,898) (1,160,658) (730,905) (1,020,103) Increase (decrease) in net assets from capital transactions (4,981,978) (5,786,620) (728,924) (2,225,066) (7,770,026) (7,390,961) Increase (decrease) in net assets (7,558,786) (431,557) (1,133,804) (1,482,342) (11,422,744) 1,633,817 Net assets at beginning of year 44,319,272 44,750,829 6,060,089 7,542,431 68,641,541 67,007,724 Net assets at end of year $36,760,486 $44,319,272 $4,926,285 $6,060,089 $57,218,797 $68,641,541 Change in units (note 5): Units purchased 19,899 9,943 11,946 25,523 330,001 352,190 Units redeemed (123,000) (143,408) (56,890) (166,466) (780,923) (809,022) Net increase (decrease) in units from capital transactions with contract owners (103,101) (133,465) (44,944) (140,943) (450,922) (456,832)

See accompanying notes to financial statements. F-40 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Fidelity(R) Variable Insurance Products Fund (continued) --------------------------------------------------------------------------------------------------------- VIP VIP VIP Dynamic Capital VIP Contrafund(R) Contrafund(R) Appreciation Equity-Income Portfolio -- Portfolio -- Portfolio -- Portfolio -- Initial Class Service Class 2 Service Class 2 Initial Class ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $(778,075) $(480,684) $(1,522,053) $(1,175,391) $(27,370) $(21,826) $618,609 $245,148 3,894,585 5,271,110 10,245,894 5,532,883 142,997 86,529 820,275 1,059,403 (19,011,710) 9,014,818 (27,527,175) 13,474,659 (453,751) 249,855 (12,275,710) 5,943,354 9,037,248 5,653,190 12,185,195 7,290,931 218,500 159,055 3,704,720 1,748,239 (6,857,952) 19,458,434 (6,618,139) 25,123,082 (119,624) 473,613 (7,132,106) 8,996,144 42,295 85,654 810,459 1,305,085 550 550 107,503 139,946 (820,544) (2,056,435) (283,222) (402,109) (612) (546) (1,113,489) (1,185,539) (10,544,885) (12,480,284) (13,443,374) (12,838,916) (239,352) (215,221) (8,402,992) (9,744,727) (120,444) (131,147) (700,592) (776,657) (6,741) (8,243) (77,970) (86,274) (1,059,215) (3,253,482) (32,558,947) 14,801,442 (367,036) (146,004) (413,253) (1,053,446) (12,502,793) (17,835,694) (46,175,676) 2,088,845 (613,191) (369,464) (9,900,201) (11,930,040) (19,360,745) 1,622,740 (52,793,815) 27,211,927 (732,815) 104,149 (17,032,307) (2,933,896) 106,145,949 104,523,209 149,150,044 121,938,117 2,465,878 2,361,729 83,585,957 86,519,853 $86,785,204 $106,145,949 $96,356,229 $149,150,044 $1,733,063 $2,465,878 $66,553,650 $83,585,957 56,861 57,033 551,682 1,605,935 4,825 1,328 30,076 36,888 (300,455) (449,907) (2,551,533) (1,262,887) (24,322) (14,712) (210,854) (296,843) (243,594) (392,874) (1,999,851) 343,048 (19,497) (13,384) (180,778) (259,955)

-------------------------- VIP Equity-Income Portfolio -- Service Class 2 ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $237,660 $(12,050) 820,838 964,680 (11,446,611) 5,448,613 3,469,438 1,275,369 (6,918,675) 7,676,612 108,465 132,179 (177,833) (549,651) (6,987,117) (6,446,849) (414,089) (353,097) (2,085,797) 24,930,153 (9,556,371) 17,712,735 (16,475,046) 25,389,347 77,518,219 52,128,872 $61,043,173 $77,518,219 426,373 2,092,152 (925,848) (742,874) (499,475) 1,349,278

See accompanying notes to financial statements. F-41 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Fidelity(R) Variable Insurance Products Fund (continued) ----------------------------------------------------------------------------- VIP VIP VIP Growth Growth & Income Growth & Income Opportunities Portfolio -- Portfolio -- Portfolio -- Initial Class Service Class 2 Initial Class ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(220,601) $(39,320) $(265,051) $(92,037) $(147,890) $(111,583) Net realized gain (loss) on investments 927,904 997,758 969,894 873,126 885,473 604,602 Change in unrealized appreciation (depreciation) on investments (3,857,744) 1,477,534 (3,705,644) 1,336,341 (254,069) 946,810 Capital gain distribution 1,203,098 502,950 1,056,008 448,819 625,253 1,256,491 Increase (decrease) in net assets from operations (1,947,343) 2,938,922 (1,944,793) 2,566,249 1,108,767 2,696,320 From capital transactions (note 4): Net premiums 800 2,475 49,620 57,389 1,971 68,810 Death benefits (287,100) (223,320) (67,813) (4,554) (38,381) (131,495) Surrenders (1,945,662) (2,078,591) (2,363,675) (1,476,714) (1,166,148) (1,023,289) Administrative expenses (30,472) (32,307) (63,193) (60,019) (12,710) (12,471) Transfers between subaccounts (including fixed account), net 101,214 (224,888) (1,893,655) (1,699,016) 297,646 38,321 Increase (decrease) in net assets from capital transactions (2,161,220) (2,556,631) (4,338,716) (3,182,914) (917,622) (1,060,124) Increase (decrease) in net assets (4,108,563) 382,291 (6,283,509) (616,665) 191,145 1,636,196 Net assets at beginning of year 21,216,165 20,833,874 18,985,535 19,602,200 10,237,279 8,601,083 Net assets at end of year $17,107,602 $21,216,165 $12,702,026 $18,985,535 $10,428,424 $10,237,279 Change in units (note 5): Units purchased 26,954 24,842 235,304 69,100 63,464 31,659 Units redeemed (110,733) (132,914) (480,353) (256,895) (93,671) (80,867) Net increase (decrease) in units from capital transactions with contract owners (83,779) (108,072) (245,049) (187,795) (30,207) (49,208)

See accompanying notes to financial statements. F-42 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Fidelity(R) Variable Insurance Products Fund (continued) --------------------------------------------------------------------------------------------------------- VIP VIP Growth VIP VIP Investment Opportunities Growth Growth Grade Bond Portfolio -- Portfolio -- Portfolio -- Portfolio -- Service Class 2 Initial Class Service Class 2 Service Class 2 ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $(68,728) $(57,491) $(719,194) $(677,191) $(325,675) $(269,990) $189,144 $547,329 203,438 91,748 3,700,028 3,967,887 1,082,722 1,211,803 (2,221,583) (450,784) (76,850) 514,295 (12,118,407) 9,302,913 (4,002,479) 2,722,801 (1,784,533) 2,167,226 244,594 572,056 8,924,979 4,289,384 3,013,336 1,266,200 744,429 615,806 302,454 1,120,608 (212,594) 16,882,993 (232,096) 4,930,814 (3,072,543) 2,879,577 1,070 7,619 43,603 33,866 108,113 78,294 199,648 263,884 1,060 (333,627) (419,616) (708,416) (128,215) (447,595) (140,254) (326,553) (368,219) (350,628) (7,018,036) (6,584,668) (2,165,308) (1,971,799) (11,790,333) (14,925,390) (26,917) (23,890) (61,030) (61,433) (72,207) (55,021) (930,216) (1,098,409) 3,245,570 (546,006) (504,485) (670,935) (202,458) 3,628,324 (29,935,221) (2,373,404) 2,852,564 (1,246,532) (7,959,564) (7,991,586) (2,460,075) 1,232,203 (42,596,376) (18,459,872) 3,155,018 (125,924) (8,172,158) 8,891,407 (2,692,171) 6,163,017 (45,668,919) (15,580,295) 3,876,574 4,002,498 62,495,703 53,604,296 21,409,441 15,246,424 121,545,311 137,125,606 $7,031,592 $3,876,574 $54,323,545 $62,495,703 $18,717,270 $21,409,441 $75,876,392 $121,545,311 160,765 7,245 43,763 35,519 89,661 249,115 1,064,069 957,509 (44,912) (72,701) (185,489) (221,658) (213,312) (237,227) (4,492,682) (2,401,367) 115,853 (65,456) (141,726) (186,139) (123,651) 11,888 (3,428,613) (1,443,858)

-------------------------- VIP Mid Cap Portfolio -- Initial Class ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(13) $(5) 447 30 (3,050) 1,640 1,108 527 (1,508) 2,192 80 240 -- -- (2,939) -- -- -- (108) (133) (2,967) 107 (4,475) 2,299 13,289 10,990 $8,814 $13,289 2 6 (61) (3) (59) 3

See accompanying notes to financial statements. F-43 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Fidelity(R) Variable Insurance Products Fund (continued) ------------------------------------------------------------------------------ VIP VIP VIP Mid Cap Overseas Value Strategies Portfolio -- Portfolio -- Portfolio -- Service Class 2 Initial Class Service Class 2 -------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 -------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(1,465,943) $(1,492,205) $20,348 $7,376 $(20,481) $(7,593) Net realized gain (loss) on investments 3,075,326 3,510,520 621,430 521,065 23,535 74,076 Change in unrealized appreciation (depreciation) on investments (30,139,403) 14,009,816 (3,213,278) 3,667,489 (574,262) (295,632) Capital gain distribution 10,860,719 6,328,394 -- 15,545 110,093 655,723 Increase (decrease) in net assets from operations (17,669,301) 22,356,525 (2,571,500) 4,211,475 (461,115) 426,574 From capital transactions (note 4): Net premiums 190,439 755,608 63,307 6,131 -- 122 Death benefits (605,492) (906,813) (139,410) (419,103) (6,738) (6,574) Surrenders (12,918,175) (13,955,470) (1,749,625) (1,795,425) (96,839) (272,815) Administrative expenses (625,209) (680,871) (20,494) (21,654) (6,899) (7,522) Transfers between subaccounts (including fixed account), net (3,178,596) (12,193,815) 89,103 230,115 (57,063) (223,441) Increase (decrease) in net assets from capital transactions (17,137,033) (26,981,361) (1,757,119) (1,999,936) (167,539) (510,230) Increase (decrease) in net assets (34,806,334) (4,624,836) (4,328,619) 2,211,539 (628,654) (83,656) Net assets at beginning of year 129,568,377 134,193,213 17,614,494 15,402,955 2,609,129 2,692,785 Net assets at end of year $94,762,043 $129,568,377 $13,285,875 $17,614,494 $1,980,475 $2,609,129 Change in units (note 5): Units purchased 508,765 280,057 30,358 39,644 9,517 5,765 Units redeemed (987,834) (1,230,162) (94,434) (111,988) (16,874) (30,362) Net increase (decrease) in units from capital transactions with contract owners (479,069) (950,105) (64,076) (72,344) (7,357) (24,597)

See accompanying notes to financial statements. F-44 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Franklin Templeton Variable Insurance Products Trust --------------------------------------------------------------------------------------------------------- Franklin Franklin Founding Funds Franklin Large Cap Franklin Allocation Income Growth Mutual Shares VIP Fund -- VIP Fund -- VIP Fund -- VIP Fund -- Class 2 Shares Class 2 Shares Class 2 Shares Class 2 Shares ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $715,415 $551,008 $7,714,518 $6,770,182 $(2,816) $(1,567) $109,344 $109,362 (320,027) (183,017) 2,723,078 2,693,829 3,736 4,445 434,049 462,665 (8,777,795) 3,495,190 (26,254,304) 13,213,794 (18,700) 23,700 (2,460,891) (169,534) 1,505,639 2,939,896 -- -- 14,339 13,843 519,534 648,153 (6,876,768) 6,803,077 (15,816,708) 22,677,805 (3,441) 40,421 (1,397,964) 1,050,646 396 62,383 593,860 153,634 -- -- 44,369 58,230 (81,449) (453,526) (846,648) (1,227,358) -- -- (90,200) (65,891) (7,497,433) (7,277,680) (29,176,978) (34,615,865) (11,106) (11,014) (1,417,604) (1,101,492) (455,124) (481,582) (1,169,743) (1,211,176) (801) (428) (74,825) (78,152) (2,134,529) (2,323,368) (17,150,974) (9,284,928) (685) (21,349) (875,132) (562,687) (10,168,139) (10,473,773) (47,750,483) (46,185,693) (12,592) (32,791) (2,413,392) (1,749,992) (17,044,907) (3,670,696) (63,567,191) (23,507,888) (16,033) 7,630 (3,811,356) (699,346) 70,021,184 73,691,880 298,895,674 322,403,562 176,092 168,462 15,618,185 16,317,531 $52,976,277 $70,021,184 $235,328,483 $298,895,674 $160,059 $176,092 $11,806,829 $15,618,185 246,840 281,075 589,029 714,387 135 34 37,561 35,128 (1,042,611) (1,129,671) (3,626,273) (3,719,433) (593) (1,545) (160,407) (127,795) (795,771) (848,596) (3,037,244) (3,005,046) (458) (1,511) (122,846) (92,667)

-------------------------- Templeton Foreign VIP Fund -- Class 1 Shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $96,892 $92,594 21,418 27,490 (1,261,325) 911,438 -- -- (1,143,015) 1,031,522 3,725 3,395 (42,380) (129,549) (1,139,251) (1,136,063) (12,624) (12,839) 380,278 293,024 (810,252) (982,032) (1,953,267) 49,490 7,352,595 7,303,105 $5,399,328 $7,352,595 47,604 31,558 (102,104) (96,456) (54,500) (64,898)

See accompanying notes to financial statements. F-45 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Franklin Templeton Variable Insurance Products Trust (continued) ----------------------------------------------------------------------------- Templeton Templeton Templeton Foreign Global Bond Growth VIP Fund -- VIP Fund -- VIP Fund -- Class 2 Shares Class 1 Shares Class 2 Shares ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $5,382 3,421 (75,425) (85,021) 59,821 5,890 Net realized gain (loss) on investments 3,229 19,505 (20,840) (45,336) 195,546 251,449 Change in unrealized appreciation (depreciation) on investments (121,160) 88,903 144,549 180,925 (2,695,737) 1,412,343 Capital gain distribution -- -- -- 20,084 943,778 -- Increase (decrease) in net assets from operations (112,549) 111,829 48,284 70,652 (1,496,592) 1,669,682 From capital transactions (note 4): Net premiums -- -- 720 18,463 34,657 90,857 Death benefits (532) (6,574) (38,640) (104,342) 18,439 (18,941) Surrenders (44,365) (86,509) (298,887) (790,958) (1,053,361) (761,225) Administrative expenses (1,385) (1,241) (8,605) (9,920) (54,575) (55,199) Transfers between subaccounts (including fixed account), net 38,486 (370,650) (111,660) (34,665) (1,649,861) 1,834,074 Increase (decrease) in net assets from capital transactions (7,796) (464,974) (457,072) (921,422) (2,704,701) 1,089,566 Increase (decrease) in net assets (120,345) (353,145) (408,788) (850,770) (4,201,293) 2,759,248 Net assets at beginning of year 681,794 1,034,939 5,797,092 6,647,862 11,557,542 8,798,294 Net assets at end of year $561,449 681,794 5,388,304 5,797,092 7,356,249 11,557,542 Change in units (note 5): Units purchased 7,000 6,160 11,274 23,722 106,409 231,424 Units redeemed (7,156) (39,990) (36,276) (73,270) (312,347) (136,612) Net increase (decrease) in units from capital transactions with contract owners (156) (33,830) (25,002) (49,548) (205,938) 94,812

See accompanying notes to financial statements. F-46 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Goldman Sachs Variable Insurance Trust ---------------------------------------------------------------------------------- Goldman Sachs Goldman Sachs Goldman Sachs Government Money Large Cap Mid Cap Market Fund -- Value Fund -- Value Fund -- Service Shares Institutional Shares Institutional Shares ---------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------- $(139,040) $(1,392,501) $(15,643) $10,029 $(85,726) $(411,457) -- -- (227,028) (30,095) 674,811 1,143,437 -- -- (709,378) (620,050) (8,768,742) 1,052,214 -- -- 344,499 1,214,491 4,142,802 2,171,291 (139,040) (1,392,501) (607,550) 574,375 (4,036,855) 3,955,485 192,155 165,769 -- 2,175 1,510 380,562 (57,185,225) (86,352,964) (92,507) (102,988) (376,411) (297,862) (46,655,320) (49,651,362) (825,572) (808,346) (3,955,884) (4,708,444) (308,277) (320,619) (10,203) (12,086) (61,369) (95,600) 106,050,214 129,524,722 (57,388) (37,587) (1,522,928) (11,261,087) 2,093,547 (6,634,454) (985,670) (958,832) (5,915,082) (15,982,431) 1,954,507 (8,026,955) (1,593,220) (384,457) (9,951,937) (12,026,946) 124,948,610 132,975,565 7,079,700 7,464,157 39,934,262 51,961,208 $126,903,117 $124,948,610 $5,486,480 $7,079,700 $29,982,325 $39,934,262 17,870,031 19,596,963 19,954 15,158 12,564 54,294 (17,648,093) (20,303,837) (74,493) (70,140) (173,270) (683,925) 221,938 (706,874) (54,539) (54,982) (160,706) (629,631)

JPMorgan Insurance Trust --------------------------------------------------- JPMorgan JPMorgan Insurance Trust Insurance Trust Core Bond Mid Cap Value Portfolio -- Class 1 Portfolio -- Class 1 --------------------------------------------------- Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2018 2017 2018 2017 --------------------------------------------------- $21,624 $25,249 $(3,288) $(1,867) (52,967) (14,160) 3,528 9,475 (41,694) 52,481 (55,547) 5,550 5,364 -- 4,604 13,603 (67,673) 63,570 (50,703) 26,761 -- -- -- -- (3,275) (43,427) (396) (2,278) (287,463) (340,060) (21,412) (20,725) (4,814) (6,322) (573) (429) (384,205) (35,020) 109,941 196,965 (679,757) (424,829) 87,560 173,533 (747,430) (361,259) 36,857 200,294 3,406,373 3,767,632 294,972 94,678 $2,658,943 $3,406,373 $331,829 $294,972 26,118 29,041 8,855 16,776 (77,256) (59,689) (3,184) (4,693) (51,138) (30,648) 5,671 12,083

See accompanying notes to financial statements. F-47 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

JPMorgan Insurance Trust (continued) Janus Aspen Series --------------------------------------------------- ------------------------- JPMorgan JPMorgan Janus Insurance Trust Insurance Trust Henderson Small Cap Core U.S. Equity Balanced Portfolio -- Portfolio -- Class 1 Portfolio -- Class 1 Institutional Shares ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(2,297) $(3,443) $(14,698) $(11,519) $497,741 $117,787 Net realized gain (loss) on investments 34,228 16,423 66,733 100,473 3,159,139 2,439,512 Change in unrealized appreciation (depreciation) on investments (48,958) 13,006 (297,146) 116,687 (5,813,102) 8,532,626 Capital gain distribution 12,748 1,562 127,399 11,652 1,939,579 146,950 Increase (decrease) in net assets from operations (4,279) 27,548 (117,712) 217,293 (216,643) 11,236,875 From capital transactions (note 4): Net premiums -- -- -- -- 2,806 5,716 Death benefits (127) (3,230) (1,869) (16,209) (669,863) (1,255,222) Surrenders (12,418) (28,407) (102,475) (139,378) (8,800,430) (8,664,498) Administrative expenses (165) (211) (1,902) (1,847) (89,040) (97,385) Transfers between subaccounts (including fixed account), net (98,298) (18,934) 392,383 (127,049) 42,484 (169,826) Increase (decrease) in net assets from capital transactions (111,008) (50,782) 286,137 (284,483) (9,514,043) (10,181,215) Increase (decrease) in net assets (115,287) (23,234) 168,425 (67,190) (9,730,686) 1,055,660 Net assets at beginning of year 208,081 231,315 1,128,618 1,195,808 72,838,723 71,783,063 Net assets at end of year $ 92,794 $208,081 $1,297,043 $1,128,618 $63,108,037 $72,838,723 Change in units (note 5): Units purchased 1,694 1,663 23,296 2,090 76,490 38,403 Units redeemed (7,224) (4,003) (11,534) (14,758) (289,499) (316,023) Net increase (decrease) in units from capital transactions with contract owners (5,530) (2,340) 11,762 (12,668) (213,009) (277,620)

See accompanying notes to financial statements. F-48 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Janus Aspen Series (continued) ---------------------------------------------------------------------------------------------------------- Janus Janus Janus Janus Henderson Henderson Henderson Henderson Flexible Bond Balanced Portfolio -- Enterprise Portfolio -- Enterprise Portfolio -- Portfolio -- Service Shares Institutional Shares Service Shares Institutional Shares ----------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ----------------------------------------------------------------------------------------------------------- $(9,920) $(432,932) $(571,616) $(381,772) $(79,765) $(52,629) $161,087 $169,182 4,593,136 3,184,487 3,729,475 3,463,502 293,264 287,130 (194,443) (150,802) (8,321,339) 12,735,340 (5,733,086) 4,906,631 (559,124) 609,565 (246,001) 265,123 2,726,490 203,380 2,247,583 2,779,409 277,844 327,771 -- -- (1,011,633) 15,690,275 (327,644) 10,767,770 (67,781) 1,171,837 (279,357) 283,503 247,295 234,121 14,951 8,793 1,203 1,287 20,211 1,980 (355,605) (139,802) (639,101) (988,315) 26,613 (58,741) (58,079) (234,543) (11,145,747) (10,652,017) (5,631,905) (5,717,150) (613,748) (357,883) (2,284,610) (1,574,688) (468,730) (457,795) (61,849) (64,587) (9,827) (9,080) (16,521) (18,196) (1,829,408) (511,254) (581,061) (689,446) 70,445 (32,829) 395,599 (1,683,153) (13,552,195) (11,526,747) (6,898,965) (7,450,705) (525,314) (457,246) (1,943,400) (3,508,600) (14,563,828) 4,163,528 (7,226,609) 3,317,065 (593,095) 714,591 (2,222,757) (3,225,097) 107,672,020 103,508,492 48,550,150 45,233,085 5,538,191 4,823,600 11,653,129 14,878,226 $93,108,192 $107,672,020 $41,323,541 $48,550,150 $4,945,096 $5,538,191 $9,430,372 $11,653,129 334,985 317,058 29,048 26,164 9,395 24,878 46,700 29,691 (971,382) (925,655) (149,919) (186,172) (43,658) (57,918) (126,638) (163,701) (636,397) (608,597) (120,871) (160,008) (34,263) (33,040) (79,938) (134,010)

-------------------------- Janus Henderson Forty Portfolio -- Institutional Shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(115,542) $(513,090) 975,810 717,126 (4,916,888) 6,556,257 4,554,060 1,870,160 497,440 8,630,453 4,327 6,032 (127,927) (917,348) (3,584,933) (3,983,932) (49,139) (50,019) (689,599) (479,196) (4,447,271) (5,424,463) (3,949,831) 3,205,990 35,582,026 32,376,036 $31,632,195 $35,582,026 24,907 30,883 (121,008) (171,262) (96,101) (140,379)

See accompanying notes to financial statements. F-49 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Janus Aspen Series (continued) ----------------------------------------------------------------------------- Janus Janus Janus Henderson Henderson Henderson Global Research Global Research Forty Portfolio -- Portfolio -- Portfolio -- Service Shares Institutional Shares Service Shares ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(42,305) $(335,849) $(121,925) $(248,616) $(21,592) $(30,810) Net realized gain (loss) on investments 289,076 191,593 2,644,152 2,415,529 355,728 261,371 Change in unrealized appreciation (depreciation) on investments (1,776,114) 5,144,342 (5,553,141) 7,424,646 (582,087) 558,030 Capital gain distribution 1,729,486 726,213 -- -- -- -- Increase (decrease) in net assets from operations 200,143 5,726,299 (3,030,914) 9,591,559 (247,951) 788,591 From capital transactions (note 4): Net premiums 10,630 37,524 9,356 17,346 575 1,168 Death benefits (67,166) (153,130) (263,621) (841,092) (12,673) (70,551) Surrenders (1,424,692) (2,399,414) (4,914,935) (4,285,848) (624,430) (457,580) Administrative expenses (44,087) (111,350) (42,722) (47,569) (5,665) (5,504) Transfers between subaccounts (including fixed account), net (484,339) (27,246,315) (322,535) (764,830) (87,875) 58,088 Increase (decrease) in net assets from capital transactions (2,009,654) (29,872,685) (5,534,457) (5,921,993) (730,068) (474,379) Increase (decrease) in net assets (1,809,511) (24,146,386) (8,565,371) 3,669,566 (978,019) 314,212 Net assets at beginning of year 12,868,147 37,014,533 43,986,612 40,317,046 3,698,291 3,384,079 Net assets at end of year $11,058,636 $12,868,147 $35,421,241 $43,986,612 $2,720,272 $3,698,291 Change in units (note 5): Units purchased 25,789 46,149 10,044 23,075 12,239 22,153 Units redeemed (101,871) (1,703,952) (186,728) (218,403) (82,791) (72,968) Net increase (decrease) in units from capital transactions with contract owners (76,082) (1,657,803) (176,684) (195,328) (70,552) (50,815)

See accompanying notes to financial statements. F-50 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Janus Aspen Series (continued) --------------------------------------------------------------------------------------------------------------------------------- Janus Henderson Janus Janus Janus Janus Global Technology Henderson Henderson Henderson Henderson Portfolio -- Overseas Portfolio -- Overseas Portfolio -- Research Portfolio -- Research Portfolio -- Service Shares Institutional Shares Service Shares Institutional Shares Service Shares --------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------------------------------- $(33,053) $(77,774) $65,892 $42,897 $2,517 $323 $(378,691) $(437,873) $(41,424) $(47,621) 943,334 708,180 (657,016) (1,392,153) (4,737) (34,706) 2,582,864 1,949,963 283,711 220,485 (1,143,352) 1,547,467 (3,014,728) 7,169,264 (400,619) 669,836 (5,402,574) 7,964,108 (493,130) 610,285 292,001 433,855 -- -- -- -- 2,075,139 406,828 167,464 35,074 58,930 2,611,728 (3,605,852) 5,820,008 (402,839) 635,453 (1,123,262) 9,883,026 (83,379) 818,223 2,489 8,436 2,806 3,668 -- -- 6,660 81,150 -- 37 (24,862) (22,004) (102,346) (460,127) (21,241) (27,540) (549,730) (388,154) (11,045) 31,783 (1,433,264) (873,778) (1,558,044) (2,493,291) (128,167) (236,809) (5,809,784) (5,331,353) (744,335) (544,329) (19,971) (16,290) (29,264) (32,046) (5,157) (5,212) (53,251) (57,190) (5,559) (5,377) 450,181 797,363 (25,224) (477,364) (35,141) (80,693) (513,909) (877,571) (18,729) (115,152) (1,025,427) (106,273) (1,712,072) (3,459,160) (189,706) (350,254) (6,920,014) (6,573,118) (779,668) (633,038) (966,497) 2,505,455 (5,317,924) 2,360,848 (592,545) 285,199 (8,043,276) 3,309,908 (863,047) 185,185 8,398,589 5,893,134 23,651,945 21,291,097 2,611,184 2,325,985 43,863,203 40,553,295 3,613,883 3,428,698 $7,432,092 $8,398,589 $18,334,021 $23,651,945 $2,018,639 $2,611,184 $35,819,927 $43,863,203 $2,750,836 $3,613,883 103,999 174,782 36,852 24,948 8,326 261 18,148 31,838 2,556 10,415 (175,563) (176,931) (97,202) (149,725) (21,503) (25,627) (237,116) (254,080) (57,309) (59,875) (71,564) (2,149) (60,350) (124,777) (13,177) (25,366) (218,968) (222,242) (54,753) (49,460)

See accompanying notes to financial statements. F-51 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Legg Mason Partners Variable Equity Trust ----------------------------------------------------------------------------- ClearBridge ClearBridge ClearBridge Variable Aggressive Variable Dividend Variable Dividend Growth Portfolio -- Strategy Portfolio -- Strategy Portfolio -- Class II Class I Class II ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(75,259) $(103,574) $1,886 $588 $(48,453) $(37,209) Net realized gain (loss) on investments 155,052 184,040 336,392 266,685 677,016 312,940 Change in unrealized appreciation (depreciation) on investments (1,043,203) 503,861 (879,805) 510,179 (1,651,733) 1,160,446 Capital gain distribution 389,738 427,531 267,719 -- 492,522 -- Increase (decrease) in net assets from operations (573,672) 1,011,858 (273,808) 777,452 (530,648) 1,436,177 From capital transactions (note 4): Net premiums 66,857 35,261 11,066 -- 26,943 102,158 Death benefits (27,817) (515,019) (5,507) (16,479) (48,502) (179,689) Surrenders (795,355) (584,541) (716,861) (568,953) (1,057,014) (557,423) Administrative expenses (25,877) (30,357) (8,140) (8,560) (25,954) (23,809) Transfers between subaccounts (including fixed account), net 349,028 (1,411,096) (111,132) (51,548) (877,402) 802,462 Increase (decrease) in net assets from capital transactions (433,164) (2,505,752) (830,574) (645,540) (1,981,929) 143,699 Increase (decrease) in net assets (1,006,836) (1,493,894) (1,104,382) 131,912 (2,512,577) 1,579,876 Net assets at beginning of year 6,235,535 7,729,429 4,990,749 4,858,837 9,961,072 8,381,196 Net assets at end of year $5,228,699 $6,235,535 $3,886,367 $4,990,749 $7,448,495 $9,961,072 Change in units (note 5): Units purchased 48,187 11,614 17,676 17,377 35,987 89,201 Units redeemed (60,944) (91,234) (64,711) (57,530) (151,956) (80,528) Net increase (decrease) in units from capital transactions with contract owners (12,757) (79,620) (47,035) (40,153) (115,969) 8,673

See accompanying notes to financial statements. F-52 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Legg Mason Partners Variable Equity Trust (continued) MFS(R) Variable Insurance Trust --------------------------------------------------------------------------------------------------------- ClearBridge MFS(R) MFS(R) MFS(R) Variable Large Cap Value Investors Trust New Discovery Total Return Portfolio -- Series -- Service Series -- Service Series -- Service Class I Class Shares Class Shares Class Shares ---------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------- $(15,234) $(11,067) $(64,013) $(55,995) $(223,344) $(214,007) $17,285 $118,821 549,834 452,676 333,758 256,182 841,632 167,558 1,163,011 1,170,514 (2,943,595) 1,030,284 (888,614) 651,866 (2,618,971) 2,784,673 (6,367,996) 1,909,747 926,251 484,666 250,644 219,532 1,867,510 282,065 1,925,845 1,307,932 (1,482,744) 1,956,559 (368,225) 1,071,585 (133,173) 3,020,289 (3,261,855) 4,507,014 1,245 31,795 5,838 3,814 3,599 6,156 31,855 68,483 (284,404) (210,565) (28,809) 11,173 (60,831) (201,356) (158,204) (171,573) (1,814,575) (1,476,188) (735,505) (510,643) (1,566,284) (1,285,210) (3,940,065) (4,161,033) (35,315) (39,770) (13,080) (13,265) (32,317) (30,226) (211,129) (216,406) (639,559) 1,503,950 (49,852) 85,178 (1,710,249) 774,794 (1,370,462) (1,378,510) (2,772,608) (190,778) (821,408) (423,743) (3,366,082) (735,842) (5,648,005) (5,859,039) (4,255,352) 1,765,781 (1,189,633) 647,842 (3,499,255) 2,284,447 (8,909,860) (1,352,025) 16,990,116 15,224,335 5,956,739 5,308,897 14,585,459 12,301,012 46,828,140 48,180,165 $12,734,764 $16,990,116 $4,767,106 $5,956,739 $11,086,204 $14,585,459 $37,918,280 $46,828,140 24,807 182,467 12,903 21,723 118,433 88,995 233,763 129,903 (168,630) (138,255) (56,445) (45,735) (262,051) (104,447) (603,580) (508,611) (143,823) 44,212 (43,542) (24,012) (143,618) (15,452) (369,817) (378,708)

-------------------------- MFS(R) Utilities Series -- Service Class Shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(102,274) $389,455 239,861 418,144 (281,271) 1,243,268 54,427 -- (89,257) 2,050,867 4,286 24,104 (84,203) (42,976) (1,436,823) (2,006,105) (41,462) (47,969) (629,594) (1,456,663) (2,187,796) (3,529,609) (2,277,053) (1,478,742) 15,293,148 16,771,890 $13,016,095 $15,293,148 10,684 27,487 (93,386) (164,056) (82,702) (136,569)

See accompanying notes to financial statements. F-53 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Oppenheimer Variable MFS(R) Variable Insurance Trust II Account Funds --------------------------------------------------- ------------------------- MFS(R) Massachusetts MFS(R) Oppenheimer Investors Growth Stock Strategic Income Capital Appreciation Portfolio -- Service Portfolio -- Service Fund/VA -- Class Shares Class Shares Non-Service Shares ------------------------- ------------------------- ------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(94,571) $(92,319) $653 $924 $(299,050) $(332,282) Net realized gain (loss) on investments 282,513 1,211 (159) 95 1,292,426 1,188,652 Change in unrealized appreciation (depreciation) on investments (543,473) 1,512,665 (1,525) 380 (4,506,704) 3,023,815 Capital gain distribution 425,878 417,438 -- -- 2,117,435 2,534,406 Increase (decrease) in net assets from operations 70,347 1,838,995 (1,031) 1,399 (1,395,893) 6,414,591 From capital transactions (note 4): Net premiums 5,767 8,798 -- -- 1,987 11,158 Death benefits (256,924) (81,314) -- -- (663,066) (342,115) Surrenders (1,711,868) (739,082) (2,204) (5,175) (3,951,979) (3,253,998) Administrative expenses (18,242) (16,747) (149) (178) (28,446) (31,691) Transfers between subaccounts (including fixed account), net (419,443) (97,572) 370 596 (533,660) (1,912,203) Increase (decrease) in net assets from capital transactions (2,400,710) (925,917) (1,983) (4,757) (5,175,164) (5,528,849) Increase (decrease) in net assets (2,330,363) 913,078 (3,014) (3,358) (6,571,057) 885,742 Net assets at beginning of year 8,291,704 7,378,626 28,760 32,118 28,780,137 27,894,395 Net assets at end of year $5,961,341 $8,291,704 $25,746 $28,760 $22,209,080 $28,780,137 Change in units (note 5): Units purchased 12,846 33,120 62 57 12,084 5,208 Units redeemed (190,748) (112,359) (249) (486) (109,242) (106,837) Net increase (decrease) in units from capital transactions with contract owners (177,902) (79,239) (187) (429) (97,158) (101,629)

See accompanying notes to financial statements. F-54 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Oppenheimer Variable Account Funds (continued) -------------------------------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Appreciation Conservative Balanced Conservative Balanced Discovery Mid Cap Fund/VA -- Fund/VA -- Fund/VA -- Growth Fund/VA -- Service Shares Non-Service Shares Service Shares Non-Service Shares --------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------- $(68,461) $(71,191) $60,399 $66,096 $(34,020) $(37,598) $(323,370) $(314,331) 186,360 114,391 136,917 157,609 473,483 521,323 1,264,794 1,244,852 (730,285) 538,823 (1,077,671) 606,417 (2,286,726) 946,247 (5,608,443) 2,326,532 329,816 428,079 232,364 -- 457,140 -- 3,260,360 2,422,955 (282,570) 1,010,102 (647,991) 830,122 (1,390,123) 1,429,972 (1,406,659) 5,680,008 11,437 6,436 -- 7,291 60,170 36,106 34,680 16,678 11,180 (35,989) (161,136) (124,822) (47,627) (64,645) (254,024) (315,316) (571,812) (232,869) (983,393) (1,380,602) (2,672,796) (2,414,448) (2,958,036) (2,797,724) (23,378) (23,322) (11,839) (13,331) (97,589) (99,349) (21,305) (22,496) (25,395) (464,541) 426,832 306,127 280,623 (132,811) (140,714) (416,772) (597,968) (750,285) (729,536) (1,205,337) (2,477,219) (2,675,147) (3,339,399) (3,535,630) (880,538) 259,817 (1,377,527) (375,215) (3,867,342) (1,245,175) (4,746,058) 2,144,378 4,645,339 4,385,522 10,782,737 11,157,952 20,762,052 22,007,227 24,386,550 22,242,172 $3,764,801 $4,645,339 $9,405,210 $10,782,737 $16,894,710 $20,762,052 $19,640,492 $24,386,550 22,456 6,612 29,831 30,020 175,578 135,423 19,031 6,409 (48,946) (41,938) (47,391) (56,930) (409,349) (389,005) (77,008) (81,144) (26,490) (35,326) (17,560) (26,910) (233,771) (253,582) (57,977) (74,735)

-------------------------- Oppenheimer Discovery Mid Cap Growth Fund/VA -- Service Shares ------------------------- Year ended Year ended December 31, December 31, 2018 2017 ------------------------- $(129,345) $(113,477) 40,993 92,196 (1,755,094) 998,578 1,186,865 753,459 (656,581) 1,730,756 43,352 148,366 (61,552) (132,938) (591,590) (430,118) (40,222) (36,691) (136,204) 553,568 (786,216) 102,187 (1,442,797) 1,832,943 8,383,158 6,550,215 $6,940,361 $8,383,158 84,813 54,953 (115,240) (50,970) (30,427) 3,983

See accompanying notes to financial statements. F-55 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Oppenheimer Variable Account Funds (continued) ------------------------------------------------------------------------------- Oppenheimer Oppenheimer Oppenheimer Global Strategic Main Street Global Fund/VA -- Income Fund/VA -- Fund/VA -- Service Shares Non-Service Shares Service Shares ------------------------- ------------------------- --------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets From operations: Net investment income (expense) $(647,252) $(683,718) $109,058 $34,573 $(989,594) $(743,287) Net realized gain (loss) on investments 7,383,293 4,116,053 (61,866) (55,124) 4,531,072 5,512,937 Change in unrealized appreciation (depreciation) on investments (22,841,217) 19,355,389 (228,149) 196,897 (24,012,941) 8,775,146 Capital gain distribution 6,251,962 -- -- -- 9,089,198 1,903,483 Increase (decrease) in net assets from operations (9,853,214) 22,787,724 (180,957) 176,346 (11,382,265) 15,448,279 From capital transactions (note 4): Net premiums 615,469 144,413 51,500 2,615 229,227 164,551 Death benefits (230,259) (331,356) (99,110) (52,229) (237,638) (340,920) Surrenders (7,550,253) (7,411,783) (295,715) (604,101) (12,002,801) (12,426,446) Administrative expenses (492,101) (476,847) (4,321) (5,352) (937,409) (868,817) Transfers between subaccounts (including fixed account), net (8,775,343) 3,684,057 (126,116) 93,013 21,694,540 (4,788,412) Increase (decrease) in net assets from capital transactions (16,432,487) (4,391,516) (473,762) (566,054) 8,745,919 (18,260,044) Increase (decrease) in net assets (26,285,701) 18,396,208 (654,719) (389,708) (2,636,346) (2,811,765) Net assets at beginning of year 85,383,189 66,986,981 3,410,317 3,800,025 109,415,610 112,227,375 Net assets at end of year $59,097,488 $85,383,189 $2,755,598 $3,410,317 $106,779,264 $109,415,610 Change in units (note 5): Units purchased 690,357 871,234 15,553 31,617 2,016,238 423,949 Units redeemed (1,685,806) (1,111,100) (60,866) (84,724) (1,511,280) (1,441,093) Net increase (decrease) in units from capital transactions with contract owners (995,449) (239,866) (45,313) (53,107) 504,958 (1,017,144)

See accompanying notes to financial statements. F-56 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Oppenheimer Variable Account Funds (continued) ------------------------------------------------------ Oppenheimer Oppenheimer Main Street Small Total Return Cap Fund(R)/VA -- Bond Fund/VA -- Service Shares Non-Service Shares ------------------------------------------------------ Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2018 2017 2018 2017 ------------------------------------------------------ $(619,662) $(474,876) $164,421 $101,153 3,002,414 3,014,408 (248,449) (151,248) (10,233,356) 278,650 (154,432) 360,851 5,192,879 2,589,921 -- -- (2,657,725) 5,408,103 (238,460) 310,756 80,266 174,507 2,400 17,413 (27,684) (186,173) (251,185) (202,853) (3,989,002) (4,894,685) (1,376,890) (963,441) (266,752) (321,336) (14,331) (16,993) (9,901,518) (6,493,821) 312,063 61,808 (14,104,690) (11,721,508) (1,327,943) (1,104,066) (16,762,415) (6,313,405) (1,566,403) (793,310) 44,261,008 50,574,413 9,660,219 10,453,529 $27,498,593 $44,261,008 $8,093,816 $9,660,219 236,761 231,815 47,524 43,385 (791,500) (691,810) (122,481) (114,881) (554,739) (459,995) (74,957) (71,496)

PIMCO Variable Insurance Trust ----------------------------------------------------------------------------- International High Yield Bond Portfolio All Asset Portfolio -- (U.S. Dollar Hedged) -- Portfolio -- Advisor Administrative Administrative Class Shares Class Shares Class Shares ----------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ----------------------------------------------------------------------------- $93,125 $221,604 $1,467,377 $1,498,491 $(5,867) $69,236 (9,308) 19,516 (140,682) 284,987 11,214 58,734 (539,026) 639,404 (3,166,751) 464,066 (219) (96,164) -- -- -- -- 7,042 -- (455,209) 880,524 (1,840,056) 2,247,544 12,170 31,806 3,040 3,034 64,221 73,428 30 81 13,933 (70,011) (46,414) (485,905) (2,563) (290,652) (611,393) (862,811) (4,432,500) (5,393,329) (214,979) (274,116) (26,071) (30,226) (268,111) (259,843) (4,436) (4,943) (253,708) (176,974) 3,168,368 (405,741) 62,576 (273,163) (874,199) (1,136,988) (1,514,436) (6,471,390) (159,372) (842,793) (1,329,408) (256,464) (3,354,492) (4,223,846) (147,202) (810,987) 7,231,596 7,488,060 43,833,113 48,056,959 2,313,278 3,124,265 $5,902,188 $7,231,596 $40,478,621 $43,833,113 $2,166,076 $2,313,278 27,759 117,921 548,321 268,824 5,192 9,214 (85,449) (191,313) (596,128) (573,886) (13,235) (52,741) (57,690) (73,392) (47,807) (305,062) (8,043) (43,527)

See accompanying notes to financial statements. F-57 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

PIMCO Variable Insurance Trust (continued) ------------------------------------------------------------------------------- Long-Term U.S. Government Low Duration Total Return Portfolio -- Portfolio -- Portfolio -- Administrative Administrative Administrative Class Shares Class Shares Class Shares ------------------------- ------------------------- --------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets From operations: Net investment income (expense) $248,953 $189,249 $92,440 $(154,465) $1,662,949 $843,104 Net realized gain (loss) on investments (913,409) (639,158) (275,603) (125,407) (2,827,887) (1,047,592) Change in unrealized appreciation (depreciation) on investments (929,237) 2,975,978 (408,769) 121,643 (5,774,875) 7,643,842 Capital gain distribution 169,237 -- -- -- 2,037,138 -- Increase (decrease) in net assets from operations (1,424,456) 2,526,069 (591,932) (158,229) (4,902,675) 7,439,354 From capital transactions (note 4): Net premiums 89,593 88,521 160,522 136,256 207,043 413,251 Death benefits (32,692) (63,689) (63,302) (70,852) (393,995) (950,526) Surrenders (3,844,988) (4,693,994) (5,104,401) (4,507,218) (21,736,722) (26,830,761) Administrative expenses (242,679) (222,110) (346,181) (334,125) (1,326,988) (1,493,680) Transfers between subaccounts (including fixed account), net 5,450,134 236,235 6,645,261 3,523,132 (25,603,661) (3,989,359) Increase (decrease) in net assets from capital transactions 1,419,368 (4,655,037) 1,291,899 (1,252,807) (48,854,323) (32,851,075) Increase (decrease) in net assets (5,088) (2,128,968) 699,967 (1,411,036) (53,756,998) (25,411,721) Net assets at beginning of year 34,651,477 36,780,445 43,445,835 44,856,871 219,063,072 244,474,793 Net assets at end of year $34,646,389 $34,651,477 $44,145,802 $43,445,835 $165,306,074 $219,063,072 Change in units (note 5): Units purchased 714,459 292,452 1,249,700 628,267 1,570,047 1,175,575 Units redeemed (602,181) (508,451) (1,142,689) (727,477) (4,875,393) (3,291,331) Net increase (decrease) in units from capital transactions with contract owners 112,278 (215,999) 107,011 (99,210) (3,305,346) (2,115,756)

See accompanying notes to financial statements. F-58 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Rydex Variable Trust State Street Variable Insurance Series Funds, Inc. ------------------------- ----------------------------------------------------------------------------- Premier Growth Real Estate Income Equity Securities NASDAQ -- V.I.S. Fund -- V.I.S. Fund -- V.I.S. Fund -- 100(R) Fund Class 1 Shares Class 1 Shares Class 1 Shares --------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------- $(80,687) $(86,237) $100,883 $92,950 $(418,450) $(361,084) $380,649 $(10,603) 432,561 319,429 (90,545) (11,711) 1,080,172 959,616 (1,175,007) (840,891) (684,435) 841,249 (543,978) 279,925 (5,109,267) 3,335,297 (3,054,175) 1,030,534 214,254 424,026 -- -- 3,572,415 3,010,676 548,280 2,060,173 (118,307) 1,498,467 (533,640) 361,164 (875,130) 6,944,505 (3,300,253) 2,239,213 -- 22,273 4,826 48,584 16,332 50,283 42,601 211,814 (3,853) (43,677) (137,293) (280,898) (199,265) (217,202) (123,673) (228,458) (530,531) (343,040) (1,722,512) (2,720,303) (2,982,926) (3,366,763) (4,918,422) (5,922,164) (19,058) (18,065) (51,574) (55,543) (70,386) (68,741) (215,957) (235,531) (661,907) (2,754,562) (222,150) (967,340) (1,342,349) (740,135) (483,143) (5,570,520) (1,215,349) (3,137,071) (2,128,703) (3,975,500) (4,578,594) (4,342,558) (5,698,594) (11,744,859) (1,333,656) (1,638,604) (2,662,343) (3,614,336) (5,453,724) 2,601,947 (8,998,847) (9,505,646) 5,426,910 7,065,514 18,444,784 22,059,120 30,373,968 27,772,021 49,403,902 58,909,548 $4,093,254 $5,426,910 $15,782,441 $18,444,784 $24,920,244 $30,373,968 $40,405,055 $49,403,902 100,461 24,366 53,793 52,776 24,869 24,820 314,213 167,958 (172,357) (339,345) (204,310) (313,281) (204,620) (224,756) (455,029) (473,923) (71,896) (314,979) (150,517) (260,505) (179,751) (199,936) (140,816) (305,965)

---------------------------- S&P 500(R) Index V.I.S. Fund -- Class 1 Shares --------------------------- Year ended Year ended December 31, December 31, 2018 2017 --------------------------- $218,877 $422,055 10,877,487 9,199,814 (28,541,135) 12,548,912 9,449,465 5,367,168 (7,995,306) 27,537,949 374,711 946,443 (1,679,369) (1,722,398) (16,411,535) (14,484,966) (335,760) (336,916) (2,566,590) (559,047) (20,618,543) (16,156,884) (28,613,849) 11,381,065 158,836,531 147,455,466 $130,222,682 $158,836,531 227,466 243,805 (855,095) (838,113) (627,629) (594,308)

See accompanying notes to financial statements. F-59 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

State Street Variable Insurance Series Funds, Inc. (continued) --------------------------------------------------------------------------------- Small-Cap Equity Total Return Total Return V.I.S. Fund -- V.I.S. Fund -- V.I.S. Fund -- Class 1 Shares Class 1 Shares Class 3 Shares --------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(514,838) $(539,787) $4,074,338 $3,071,903 $(728,847) $(1,843,927) Net realized gain (loss) on investments 724,347 839,785 12,732,046 13,452,134 15,553,068 22,170,390 Change in unrealized appreciation (depreciation) on investments (7,359,690) 119,470 (239,009,728) 66,189,774 (163,129,738) 42,836,420 Capital gain distribution 4,013,077 3,254,278 159,884,782 22,006,309 104,312,914 16,199,540 Increase (decrease) in net assets from operations (3,137,104) 3,673,746 (62,318,562) 104,720,120 (43,992,603) 79,362,423 From capital transactions (note 4): Net premiums 23,911 26,291 4,969,816 5,131,926 1,219,212 2,021,661 Death benefits (111,917) (103,877) (560,079) (1,324,337) (1,385,564) (1,953,285) Surrenders (3,253,886) (4,065,159) (56,496,478) (44,882,263) (87,264,644) (103,466,091) Administrative expenses (88,691) (92,063) (381,159) (412,054) (3,067,425) (3,209,328) Transfers between subaccounts (including fixed account), net (2,228,195) (1,125,756) (5,540,533) (4,274,636) (14,030,212) (25,267,443) Increase (decrease) in net assets from capital transactions (5,658,778) (5,360,564) (58,008,433) (45,761,364) (104,528,633) (131,874,486) Increase (decrease) in net assets (8,795,882) (1,686,818) (120,326,995) 58,958,756 (148,521,236) (52,512,063) Net assets at beginning of year 34,982,041 36,668,859 841,510,372 782,551,616 615,661,843 668,173,906 Net assets at end of year $26,186,159 $34,982,041 $721,183,377 $841,510,372 $467,140,607 $615,661,843 Change in units (note 5): Units purchased 47,367 78,519 3,425,823 5,148,363 2,310,507 4,794,373 Units redeemed (206,226) (244,197) (6,564,934) (7,679,043) (10,245,080) (15,176,150) Net increase (decrease) in units from capital transactions with contract owners (158,859) (165,678) (3,139,111) (2,530,680) (7,934,573) (10,381,777)

See accompanying notes to financial statements. F-60 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

State Street Variable Insurance Series Funds, Inc. (continued) The Alger Portfolios The Prudential Series Fund ------------------------- --------------------------------------------------- --------------------------------------------------- Alger Jennison U.S. Equity Alger Large Cap Small Cap 20/20 Focus Jennison V.I.S. Fund -- Growth Portfolio -- Growth Portfolio -- Portfolio -- Portfolio -- Class 1 Shares Class I-2 Shares Class I-2 Shares Class II Shares Class II Shares --------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 --------------------------------------------------------------------------------------------------------------------------------- $(170,284) $(185,526) $(432,230) $(399,412) $(300,962) $(280,757) $(93,564) $(90,934) $(89,816) $(75,691) 780,546 829,053 1,563,183 1,196,748 510,941 (536,291) 519,319 642,170 412,707 293,457 (3,395,008) 548,539 (5,132,052) 3,052,834 (632,555) 5,422,799 (769,924) 884,555 (404,187) 1,199,674 1,915,201 2,763,690 4,601,589 2,536,803 754,262 -- -- -- -- -- (869,545) 3,955,756 600,490 6,386,973 331,686 4,605,751 (344,169) 1,435,791 (81,296) 1,417,440 2,251 18,696 2,127 9,728 3,715 33,506 1,092 3,176 19,007 82,191 (29,757) (110,206) (382,321) (323,016) (355,788) (294,102) (1,417) 8,781 (94,605) (69,551) (2,391,218) (2,572,008) (3,287,661) (2,790,366) (2,734,968) (2,184,659) (322,788) (438,920) (535,130) (172,005) (63,256) (62,777) (37,130) (36,448) (30,986) (29,248) (20,601) (20,674) (28,004) (24,997) (1,050,166) (257,236) (223,207) (456,549) (195,506) (779,233) (561,169) (336,788) 8,295 69,942 (3,532,146) (2,983,531) (3,928,192) (3,596,651) (3,313,533) (3,253,736) (904,883) (784,425) (630,437) (114,420) (4,401,691) 972,225 (3,327,702) 2,790,322 (2,981,847) 1,352,015 (1,249,052) 651,366 (711,733) 1,303,020 23,908,264 22,936,039 28,029,857 25,239,535 20,023,581 18,671,566 6,142,695 5,491,329 5,575,768 4,272,748 $19,506,573 $23,908,264 $24,702,155 $28,029,857 $17,041,734 $20,023,581 $4,893,643 $6,142,695 $4,864,035 $5,575,768 36,194 53,888 27,811 44,416 43,064 28,056 5,048 17,351 11,231 32,260 (197,624) (195,439) (167,611) (187,592) (168,912) (184,120) (31,500) (46,585) (28,883) (36,779) (161,430) (141,551) (139,800) (143,176) (125,848) (156,064) (26,452) (29,234) (17,652) (4,519)

See accompanying notes to financial statements. F-61 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

The Prudential Series Fund (continued) ----------------------------------------------------------------------------- SP SP Prudential Natural International U.S. Emerging Resources Growth Growth Portfolio -- Portfolio -- Portfolio -- Class II Shares Class II Shares Class II Shares ----------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets From operations: Net investment income (expense) $(587,092) $(527,163) $(9) $(17) $(279) $(257) Net realized gain (loss) on investments (79,944) (783,024) 64 (9) 381 337 Change in unrealized appreciation (depreciation) on investments (6,820,702) 1,545,754 (94) 356 (1,770) 2,915 Capital gain distribution -- -- -- -- -- -- Increase (decrease) in net assets from operations (7,487,738) 235,567 (39) 330 (1,668) 2,995 From capital transactions (note 4): Net premiums 68,243 123,962 -- -- -- -- Death benefits (67,348) (57,502) -- -- -- -- Surrenders (3,585,221) (3,502,431) (677) (650) (406) (366) Administrative expenses (314,971) (267,420) (4) (4) (28) (27) Transfers between subaccounts (including fixed account), net 9,867,285 13,003,328 (1) -- -- (1) Increase (decrease) in net assets from capital transactions 5,967,988 9,299,937 (682) (654) (434) (394) Increase (decrease) in net assets (1,519,750) 9,535,504 (721) (324) (2,102) 2,601 Net assets at beginning of year 34,397,478 24,861,974 891 1,215 17,575 14,974 Net assets at end of year $32,877,728 $34,397,478 $170 $891 $15,473 $17,575 Change in units (note 5): Units purchased 2,811,860 2,935,533 -- -- -- -- Units redeemed (1,811,912) (1,345,077) (49) (52) (18) (15) Net increase (decrease) in units from capital transactions with contract owners 999,948 1,590,456 (49) (52) (18) (15)

See accompanying notes to financial statements. F-62 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Statements of Changes in Net Assets -- Continued

Wells Fargo Variable Trust -------------------------- Wells Fargo VT Omega Growth Fund -- Class 2 -------------------------- Year ended Year ended December 31, December 31, 2018 2017 -------------------------- $(123,070) $(70,731) 206,865 (2,811) (914,057) 1,203,777 821,699 75,637 (8,563) 1,205,872 38,088 13,010 (191,902) (1,922) (578,589) (461,238) (39,696) (21,818) (353,941) 4,937,864 (1,126,040) 4,465,896 (1,134,603) 5,671,768 8,030,255 2,358,487 $6,895,652 $8,030,255 9,388 217,858 (50,098) (26,669) (40,710) 191,189

See accompanying notes to financial statements. F-63 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements December 31, 2018 (1)Description of Entity Genworth Life & Annuity VA Separate Account 1 (the "Separate Account") is a separate investment account established on August 19, 1987 by Genworth Life and Annuity Insurance Company ("GLAIC"), pursuant to the laws of the Commonwealth of Virginia. GLAIC is a stock life insurance company operating under a charter granted by the Commonwealth of Virginia on March 21, 1871 as The Life Insurance Company of Virginia. An affiliate of GLAIC's former ultimate parent company acquired GLAIC on April 1, 1996 and ultimately contributed the majority of the outstanding common stock to Genworth Life Insurance Company ("GLIC"). On May 31, 2004, GLAIC became a direct, wholly-owned subsidiary of GLIC. GLAIC is an indirect, wholly-owned subsidiary of Genworth Financial, Inc. ("Genworth"). On October 21, 2016, Genworth entered into an agreement and plan of merger (the "Merger Agreement") with Asia Pacific Global Capital Co., Ltd., a limited liability company incorporated in the People's Republic of China and a subsidiary of China Oceanwide Holdings Group Co., Ltd., a limited liability company incorporated in the People's Republic of China (together with its affiliates, "China Oceanwide"), and Asia Pacific Global Capital USA Corporation ("Merger Sub"), a Delaware corporation and an indirect, wholly-owned subsidiary of Asia Pacific Insurance USA Holdings LLC ("Asia Pacific Insurance"), which is a Delaware limited liability company and owned by China Oceanwide, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub would merge with and into Genworth with Genworth surviving the merger as an indirect, wholly-owned subsidiary of Asia Pacific Insurance (the "Merger"). China Oceanwide has agreed to acquire all of Genworth's outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth's stockholders voted on and approved a proposal to adopt the Merger Agreement. The closing of the transaction remains subject to other conditions and approvals. GLAIC has a 34.5% investment in an affiliate, Genworth Life Insurance Company of New York. GLAIC's principal offices are located at 6610 West Broad Street, Richmond, Virginia 23230. GLAIC is a subsidiary of Genworth, a financial services company dedicated to helping meet the homeownership and long-term care needs of our customers. GLAIC operates through two segments: (i) U.S. Life Insurance and (ii) Runoff. . U.S. Life Insurance. GLAIC's principal products in its U.S. Life Insurance segment are life insurance and fixed deferred and immediate annuities. Deferred annuities are investment vehicles intended for contract owners who want to accumulate tax-deferred assets for retirement, desire a tax-efficient source of income and seek to protect against outliving their assets. Immediate annuities provide a fixed amount of income for either a defined number of years, the annuitant's lifetime or the longer of a defined number of years or the annuitant's lifetime. In March 2016, Genworth suspended sales of traditional life insurance and fixed annuity products. This decision resulted in the suspension of GLAIC's offerings for traditional life insurance and fixed annuity products. GLAIC, however, continues to service its existing retained and reinsured blocks of business. . Runoff. GLAIC's Runoff segment includes the results of non-strategic products that are no longer actively sold. GLAIC's non-strategic products primarily include its variable annuities, variable life insurance, group variable annuities offered through retirement plans and funding agreements. Most of GLAIC's variable annuities include guaranteed minimum death benefits. Some of GLAIC's group and individual variable annuity products include guaranteed minimum benefit features such as guaranteed minimum withdrawal benefits and certain types of guaranteed annuitization benefits. GLAIC no longer offers retail and group variable annuities but continues to accept purchase payments on and service its existing block of business. GLAIC also no longer offers variable life insurance policies but it continues to service existing policies. F-64 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 GLAIC also has Corporate and Other activities, which include other corporate income and expenses not allocated to the segments. GLAIC does business in Bermuda, the District of Columbia and all states, except New York. The Separate Account has subaccounts that currently invest in series or portfolios ("Portfolios") of open-end mutual funds ("Funds"). Such Portfolios are not sold directly to the general public. The Portfolios are sold to GLAIC, and they may also be sold to other insurance companies that issue variable annuity contracts and variable life insurance policies, including affiliated insurance companies of GLAIC. In addition, the Portfolios may be sold to retirement plans. GLAIC uses the Separate Account to support flexible premium variable deferred and immediate annuity contracts issued by GLAIC, as well as other purposes permitted by law. Currently, there are multiple subaccounts of the Separate Account available under each contract. Each subaccount invests exclusively in shares representing an interest in a separate corresponding Portfolio (a division of a Fund, the assets of which are separate from other Portfolios that may be available in the Fund). The assets of the Separate Account belong to GLAIC. However, GLAIC does not charge the assets in the Separate Account attributable to the contracts with liabilities arising out of any other business that GLAIC may conduct. The assets of the Separate Account will, however, be available to cover the liabilities of GLAIC's General Account to the extent that the assets of the Separate Account exceed its liabilities arising under the contracts supported by it. Income and both realized and unrealized gains or losses from the assets of the Separate Account are credited to or charged against the Separate Account without regard to the income, gains or losses arising out of any other business GLAIC may conduct. Guarantees made under the contracts, including any rider options, are based on the claims paying ability of GLAIC to the extent that the amount of the guarantee exceeds the assets available in the Separate Account. The Separate Account is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company Act of 1940, as amended. The Separate Account meets the definition of a separate account under the Federal securities laws. Registration with the SEC does not involve supervision of the management or investment practices or policies of the Separate Account by the SEC. Contract owners assume the full investment risk for amounts allocated by contract owners to the Separate Account. On August 17, 2018, Federated Insurance Series -- Federated Managed Tail Risk Fund II -- Primary Shares was liquidated, and the cash was reinvested in Federated Insurance Series -- Federated Managed Volatility Fund II -- Primary Shares. On July 30, 2018, PIMCO Variable Insurance Trust -- Foreign Bond Portfolio (U.S. Dollar Hedged) -- Administrative Class Shares changed its name to PIMCO Variable Insurance Trust -- International Bond Portfolio (U.S. Dollar Hedged) -- Administrative Class Shares. On June 29, 2018, Deutsche Variable Series I -- Deutsche Capital Growth VIP -- Class B Shares changed its name to Deutsche DWS Variable Series I -- DWS Capital Growth VIP -- Class B Shares. On June 29, 2018, Deutsche Variable Series II -- Deutsche CROCI(R) U.S. VIP -- Class B Shares changed its name to Deutsche DWS Variable Series II -- DWS CROCI(R) U.S. VIP -- Class B Shares. On June 29, 2018, Deutsche Variable Series II -- Deutsche Small Mid Cap Value VIP -- Class B Shares changed its name to Deutsche DWS Variable Series II -- DWS Small Mid Cap Value VIP -- Class B Shares. On May 1, 2018, Columbia Funds Variable Series Trust II -- Variable Portfolio -- Loomis Sayles Growth Fund -- Class 1 changed its name to Columbia Funds Variable Series Trust II -- CTIVP/SM/ -- Loomis Sayles Growth Fund -- Class 1. F-65 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 On May 1, 2018, Columbia Funds Variable Series Trust II -- Columbia Variable Portfolio -- Select International Equity Fund -- Class 2 changed its name to Columbia Funds Variable Series Trust II -- Columbia Variable Portfolio -- Overseas Core Fund -- Class 2. On June 12, 2017, BlackRock Variable Series Funds, Inc. -- BlackRock Large Cap Growth V.I. Fund -- Class III Shares changed its name to BlackRock Variable Series Funds, Inc. -- BlackRock Large Cap Focus Growth V.I. Fund -- Class III Shares. On June 12, 2017, BlackRock Variable Series Funds, Inc. -- BlackRock Value Opportunities V.I. Fund -- Class III Shares changed its name to BlackRock Variable Series Funds, Inc. -- BlackRock Advantage U.S. Total Market V.I. Fund -- Class III Shares. On June 5, 2017, Janus Aspen Series -- Balanced Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Balanced Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Balanced Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Balanced Portfolio -- Service Shares. On June 5, 2017, Janus Aspen Series -- Enterprise Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Enterprise Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Enterprise Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Enterprise Portfolio -- Service Shares. On June 5, 2017, Janus Aspen Series -- Flexible Bond Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Flexible Bond Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Forty Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Forty Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Forty Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Forty Portfolio -- Service Shares. On June 5, 2017, Janus Aspen Series -- Global Research Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Global Research Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Global Research Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Global Research Portfolio -- Service Shares. On June 5, 2017, Janus Aspen Series -- Global Technology Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Global Technology Portfolio -- Service Shares. On June 5, 2017, Janus Aspen Series -- Overseas Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Overseas Portfolio -- Institutional Shares. On June 5, 2017, Janus Aspen Series -- Overseas Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Overseas Portfolio -- Service Shares. On May 19, 2017, JPMorgan Insurance Trust -- JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- Class 1 was liquidated and the cash was reinvested in Dreyfus -- Dreyfus Variable Investment Fund -- Government Money Market Portfolio. F-66 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 On May 1, 2017, Dreyfus -- The Dreyfus Socially Responsible Growth Fund, Inc. -- Initial Shares changed its name to Dreyfus -- The Dreyfus Sustainable U.S. Equity Portfolio, Inc. -- Initial Shares. On April 28, 2017, Deutsche Variable Series II -- Deutsche Large Cap Value VIP -- Class B Shares changed its name to Deutsche Variable Series II -- Deutsche CROCI(R) U.S. VIP -- Class B Shares. On April 28, 2017, Janus Aspen Series -- Janus Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Research Portfolio -- Institutional Shares. Subsequently, on June 5, 2017, Janus Aspen Series -- Research Portfolio -- Institutional Shares changed its name to Janus Aspen Series -- Janus Henderson Research Portfolio -- Institutional Shares. On April 28, 2017, Janus Aspen Series -- Janus Portfolio -- Service Shares changed its name to Janus Aspen Series -- Research Portfolio -- Service Shares. Subsequently, on June 5, 2017, Janus Aspen Series -- Research Portfolio -- Service Shares changed its name to Janus Aspen Series -- Janus Henderson Research Portfolio -- Service Shares. On April 28, 2017, Oppenheimer Variable Account Funds -- Oppenheimer Core Bond Fund/VA -- Non-Service Shares changed its name to Oppenheimer Variable Account Funds -- Oppenheimer Total Return Bond Fund/VA -- Non-Service Shares. On April 28, 2017, State Street Variable Insurance Series Funds, Inc. -- Core Value Equity V.I.S. Fund -- Class 1 Shares was liquidated, and the cash was reinvested in Goldman Sachs Variable Insurance Trust -- Goldman Sachs Government Money Market Fund -- Service Shares. As of December 31, 2018, AIM Variable Insurance Funds (Invesco Variable Insurance Funds) -- Invesco V.I. Mid Cap Growth Fund -- Series I shares, AIM Variable Insurance Funds (Invesco Variable Insurance Funds) -- Invesco V.I. Managed Volatility Fund -- Series I shares, and The Prudential Series Fund -- Equity Portfolio -- Class II Shares were available as an investment options under the contract, but not shown on the statements as there was no activity from January 1, 2017 through December 31, 2018. All designated Portfolios listed above are series type mutual funds. (2)Summary of Significant Accounting Policies (a) Basis of Presentation These financial statements have been prepared on the basis of U.S. generally accepted accounting principles ("U.S. GAAP"). Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts and disclosures reported therein. Actual results could differ from those estimates. Prior year balances related to funds liquidated in 2017 are not disclosed in the Statements of Changes in Net Assets as they are no longer active in 2018. The Separate Account is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services -- Investment Companies. (b) Investments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Separate Account, generally, uses a market approach as the valuation technique due to the nature of the mutual fund investments offered in the Separate Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. F-67 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 Valuation Inputs: Various inputs are used to determine the value of the mutual fund's investments. These inputs are summarized in the three broad levels listed below: . Level 1 -- quoted prices in active markets for identical securities; . Level 2 -- observable inputs other than Level 1 quoted prices (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds and credit risk); and . Level 3 -- unobservable inputs. The investments of the Separate Account are measured at fair value on a recurring basis. All investments are categorized as Level 1 as of December 31, 2018, and there were no transfers between the levels during 2018. Purchases and redemptions of investments in mutual funds are recorded on the Valuation Day the request for the purchase or redemption is received. A Valuation Day is any day that the New York Stock Exchange is open for regular trading, except for days on which a Portfolio does not value its shares. Income distributions, and gains from realized gain distributions, are recorded on the ex-dividend date. Realized gains and losses on investments are determined on the average cost basis. Units and unit values are disclosed as of the last Valuation Day of the applicable year or period. (c) Unit Classes There are several unit classes of subaccounts based on the variable annuity contract through which the subaccounts are available. An indefinite number of units in each unit class is authorized. Each unit class has its own expense structure as noted in note (4)(a) below. In January 2011, Genworth announced that its insurance company subsidiaries, including GLAIC, would discontinue new sales of variable annuity products but would continue to service existing blocks of business. Although the contracts are no longer available for new sales, additional purchase payments may still be accepted under the terms of the contracts. (d) Federal Income Taxes The operations of the Separate Account are a part of, and taxed with, the operations of GLAIC. Therefore, the Separate Account is not separately taxed as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). Under existing federal income tax laws, investment income and capital gains of the Separate Account are not taxed. Accordingly, the Separate Account paid no federal income taxes and no federal income tax payment was required. GLAIC is taxed as a life insurance company under the Code. (e) Payments During Annuitization Net assets allocated to the contracts in variable payout stages ("variable annuitization") are computed in accordance with the mortality tables in effect at the time of contract issue. The default assumed interest rate is an effective annual rate of 3% for all variable annuitizations paid on a life contingency basis, with the exception of those contract owners who have annuitized while electing the Payment Optimizer Plus rider option. Under this rider option, the assumed interest rate is 4%. For contract owners who have purchased the RetireReady/SM/ Retirement Answer variable annuity, the assumed interest rate is 3.5%. The mortality risk is fully borne by GLAIC and may result in amounts transferred from GLAIC's General Account to the Separate Account should annuitants live longer than assumed. GLAIC may transfer amounts from the Separate Account to its General Account should the contracts experience higher mortality than assumed. (f) Subsequent Events The Separate Account evaluated subsequent events through the date the financial statements were issued, and no subsequent events have occurred requiring accrual or disclosure. F-68 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 (3)Purchases and Sales of Investments The aggregate cost of investments acquired, and the aggregate proceeds of investments sold, for the year ended December 31, 2018 were:

Cost of Proceeds Shares from Fund/Portfolio Acquired Shares Sold -------------- ----------- ----------- AB Variable Products Series Fund, Inc. AB Balanced Wealth Strategy Portfolio -- Class B........... $ 1,735,608 $ 2,724,417 AB Global Thematic Growth Portfolio -- Class B........... 240,010 2,981,982 AB Growth and Income Portfolio -- Class B..................... 11,857,485 8,314,051 AB International Value Portfolio -- Class B........... 8,869,027 8,878,667 AB Large Cap Growth Portfolio -- Class B..................... 6,738,431 5,139,140 AB Small Cap Growth Portfolio -- Class B..................... 9,144,262 2,500,605 AIM Variable Insurance Funds (Invesco Variable Insurance Funds) Invesco V.I. American Franchise Fund -- Series I shares........ 2,788,035 8,685,140 Invesco V.I. American Franchise Fund -- Series II shares....... 464,071 1,039,130 Invesco V.I. Comstock Fund -- Series II shares............... 3,997,413 5,448,309 Invesco V.I. Core Equity Fund -- Series I shares............. 44,038,738 25,130,013 Invesco V.I. Equity and Income Fund -- Series II shares....... 3,938,489 4,875,052 Invesco V.I. Global Real Estate Fund -- Series II shares....... 39,428 50,599 Invesco V.I. Government Securities Fund -- Series I shares......................... 383 3,078 Invesco V.I. International Growth Fund -- Series II shares......................... 10,049,690 12,091,796 Invesco V.I. Technology Fund -- Series I shares................ 60,000 29,032 Invesco V.I. Value Opportunities Fund -- Series II shares...................... 726,964 946,878 American Century Variable Portfolios II, Inc. VP Inflation Protection Fund -- Class II....................... 12,765,286 11,630,483 American Century Variable Portfolios, Inc. VP Income & Growth Fund -- Class I........................ 114,883 312,559 VP International Fund -- Class I. 132,696 109,288 VP Ultra(R) Fund -- Class I...... 14,793 15,736 VP Value Fund -- Class I......... 1,973 6,182 BlackRock Variable Series Funds, Inc. BlackRock Advantage U.S. Total Market V.I. Fund -- Class III Shares......................... 860,870 763,715 BlackRock Basic Value V.I. Fund -- Class III Shares............ 7,516,386 9,479,927 BlackRock Global Allocation V.I. Fund -- Class III Shares.. 23,183,076 54,125,381 BlackRock Large Cap Focus Growth V.I. Fund -- Class III Shares......................... 2,180,757 1,076,995 Columbia Funds Variable Series Trust II CTIVP/SM/ -- Loomis Sayles Growth Fund -- Class 1......... 5,865,612 33,026,189 Columbia Variable Portfolio -- Overseas Core Fund -- Class 2.. 1,629,718 3,247,633 Deutsche DWS Variable Series I DWS Capital Growth VIP -- Class B Shares................. 1,010 255 Deutsche DWS Variable Series II DWS CROCI(R) U.S. VIP -- Class B Shares................. 9,037 6,002 DWS Small Mid Cap Value VIP -- Class B Shares................. 3,201 1,180 Dreyfus Dreyfus Investment Portfolios MidCap Stock Portfolio -- Initial Shares................. 13,063 7,284 Dreyfus Variable Investment Fund -- Government Money Market Portfolio............... 1,346,372 1,301,575 The Dreyfus Sustainable U.S. Equity Portfolio, Inc. -- Initial Shares................. 1,316,168 229,252

F-69 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Cost of Proceeds Shares from Fund/Portfolio Acquired Shares Sold -------------- ------------ ------------ Eaton Vance Variable Trust VT Floating-Rate Income Fund... $ 29,088,189 $ 18,700,449 Federated Insurance Series Federated High Income Bond Fund II -- Primary Shares.... 1,063,431 2,631,774 Federated High Income Bond Fund II -- Service Shares.... 1,239,064 2,548,199 Federated Kaufmann Fund II -- Service Shares............... 2,140,217 3,954,058 Federated Managed Tail Risk Fund II -- Primary Shares.... 215,556 5,106,849 Federated Managed Volatility Fund II -- Primary Shares.... 5,281,952 1,445,699 Fidelity(R) Variable Insurance Products Fund VIP Asset Manager/SM/ Portfolio -- Initial Class... 2,569,799 6,084,971 VIP Asset Manager/SM/ Portfolio -- Service Class 2. 478,829 1,038,840 VIP Balanced Portfolio -- Service Class 2.............. 10,081,018 14,845,113 VIP Contrafund(R) Portfolio -- Initial Class............. 12,457,516 16,786,818 VIP Contrafund(R) Portfolio -- Service Class 2........... 24,537,319 60,041,868 VIP Dynamic Capital Appreciation Portfolio -- Service Class 2.............. 380,068 802,434 VIP Equity-Income Portfolio -- Initial Class............. 7,126,764 12,815,699 VIP Equity-Income Portfolio -- Service Class 2........... 12,148,002 18,044,920 VIP Growth & Income Portfolio -- Initial Class............. 2,067,765 3,248,744 VIP Growth & Income Portfolio -- Service Class 2........... 5,841,563 9,362,702 VIP Growth Opportunities Portfolio -- Initial Class... 2,122,927 2,561,114 VIP Growth Opportunities Portfolio -- Service Class 2. 4,189,646 1,159,255 VIP Growth Portfolio -- Initial Class................ 10,585,018 10,409,080 VIP Growth Portfolio -- Service Class 2.............. 4,904,767 4,659,925 VIP Investment Grade Bond Portfolio -- Service Class 2. 15,999,647 57,235,150 VIP Mid Cap Portfolio -- Initial Class................ 1,261 3,133 VIP Mid Cap Portfolio -- Service Class 2.............. 21,636,790 29,457,377 VIP Overseas Portfolio -- Initial Class................ 991,070 2,951,822 VIP Value Strategies Portfolio -- Service Class 2. 334,122 411,876 Franklin Templeton Variable Insurance Products Trust Franklin Founding Funds Allocation VIP Fund -- Class 2 Shares............... 6,400,091 14,442,748 Franklin Income VIP Fund -- Class 2 Shares............... 22,158,003 62,116,693 Franklin Large Cap Growth VIP Fund -- Class 2 Shares....... 16,967 17,998 Franklin Mutual Shares VIP Fund -- Class 2 Shares....... 1,446,141 3,241,876 Templeton Foreign VIP Fund -- Class 1 Shares............... 968,637 1,722,224 Templeton Foreign VIP Fund -- Class 2 Shares............... 105,179 107,545 Templeton Global Bond VIP Fund -- Class 1 Shares....... 205,705 737,806 Templeton Growth VIP Fund -- Class 2 Shares............... 2,437,692 4,145,936 Goldman Sachs Variable Insurance Trust Goldman Sachs Government Money Market Fund -- Service Shares............... 164,433,249 163,210,799 Goldman Sachs Large Cap Value Fund -- Institutional Shares. 778,826 1,432,242 Goldman Sachs Mid Cap Value Fund -- Institutional Shares. 4,977,016 6,824,334 JPMorgan Insurance Trust JPMorgan Insurance Trust Core Bond Portfolio -- Class 1.... 430,380 1,076,347 JPMorgan Insurance Trust Mid Cap Value Portfolio -- Class 1...................... 149,595 61,211 JPMorgan Insurance Trust Small Cap Core Portfolio -- Class 1...................... 43,862 144,643 JPMorgan Insurance Trust U.S. Equity Portfolio -- Class 1.. 698,025 301,439

F-70 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Cost of Proceeds Shares from Fund/Portfolio Acquired Shares Sold -------------- ----------- ----------- Janus Aspen Series Janus Henderson Balanced Portfolio -- Institutional Shares...... $ 6,402,239 $13,503,103 Janus Henderson Balanced Portfolio -- Service Shares.................... 11,739,472 22,556,207 Janus Henderson Enterprise Portfolio -- Institutional Shares...... 3,568,108 8,967,412 Janus Henderson Enterprise Portfolio -- Service Shares.................... 456,500 770,604 Janus Henderson Flexible Bond Portfolio -- Institutional Shares...... 1,452,702 3,237,021 Janus Henderson Forty Portfolio -- Institutional Shares...... 6,068,632 6,112,202 Janus Henderson Forty Portfolio -- Service Shares.................... 2,575,569 2,898,118 Janus Henderson Global Research Portfolio -- Institutional Shares...... 787,915 6,487,936 Janus Henderson Global Research Portfolio -- Service Shares............ 160,204 911,856 Janus Henderson Global Technology Portfolio -- Service Shares............ 1,836,378 2,593,902 Janus Henderson Overseas Portfolio -- Institutional Shares...... 1,537,369 3,238,459 Janus Henderson Overseas Portfolio -- Service Shares.................... 143,371 330,407 Janus Henderson Research Portfolio -- Institutional Shares...... 2,985,746 8,215,088 Janus Henderson Research Portfolio -- Service Shares.................... 216,177 869,846 Legg Mason Partners Variable Equity Trust ClearBridge Variable Aggressive Growth Portfolio -- Class II..... 1,963,991 2,082,666 ClearBridge Variable Dividend Strategy Portfolio -- Class I...... 657,739 1,216,607 ClearBridge Variable Dividend Strategy Portfolio -- Class II..... 1,212,245 2,746,975 ClearBridge Variable Large Cap Value Portfolio -- Class I................... 1,636,647 3,527,329 MFS(R) Variable Insurance Trust MFS(R) Investors Trust Series -- Service Class Shares.............. 588,726 1,222,920 MFS(R) New Discovery Series -- Service Class Shares.............. 4,369,905 6,075,923 MFS(R) Total Return Series -- Service Class Shares... 6,746,099 10,444,733 MFS(R) Utilities Series -- Service Class Shares...... 453,033 2,687,058 MFS(R) Variable Insurance Trust II MFS(R) Massachusetts Investors Growth Stock Portfolio -- Service Class Shares.............. 621,949 2,690,889 MFS(R) Strategic Income Portfolio -- Service Class Shares.............. 1,739 3,068 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA -- Non-Service Shares........ 2,665,052 6,019,702 Oppenheimer Capital Appreciation Fund/VA -- Service Shares............ 798,525 1,146,399 Oppenheimer Conservative Balanced Fund/VA -- Non-Service Shares........ 1,247,976 1,742,888 Oppenheimer Conservative Balanced Fund/VA -- Service Shares............ 2,748,010 4,743,319 Oppenheimer Discovery Mid Cap Growth Fund/VA -- Non-Service Shares........ 3,848,811 4,248,890 Oppenheimer Discovery Mid Cap Growth Fund/VA -- Service Shares............ 3,578,935 3,306,893 Oppenheimer Global Fund/VA -- Service Shares......... 24,119,241 34,943,717 Oppenheimer Global Strategic Income Fund/VA -- Non-Service Shares..... 317,353 689,655 Oppenheimer Main Street Fund/VA -- Service Shares. 45,886,373 29,241,842 Oppenheimer Main Street Small Cap Fund(R)/VA -- Service Shares............ 10,379,273 19,971,186 Oppenheimer Total Return Bond Fund/VA -- Non-Service Shares........ 1,289,023 2,445,752 PIMCO Variable Insurance Trust All Asset Portfolio -- Advisor Class Shares...... 591,500 1,371,264 High Yield Portfolio -- Administrative Class Shares.............. 11,483,854 11,459,494 International Bond Portfolio (U.S. Dollar Hedged) -- Administrative Class Shares.............. 136,774 295,867 Long-Term U.S. Government Portfolio -- Administrative Class Shares.............. 13,107,802 11,099,644 Low Duration Portfolio -- Administrative Class Shares.............. 15,116,642 13,649,915 Total Return Portfolio -- Administrative Class Shares.............. 30,185,985 74,733,542

F-71 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Cost of Proceeds Shares from Fund/Portfolio Acquired Shares Sold -------------- ------------ ------------ Rydex Variable Trust NASDAQ -- 100(R) Fund. $ 1,702,356 $ 2,701,072 State Street Variable Insurance Series Funds, Inc. Income V.I.S. Fund -- Class 1 Shares...... 1,089,814 3,102,997 Premier Growth Equity V.I.S. Fund -- Class 1 Shares...... 4,206,476 5,595,880 Real Estate Securities V.I.S. Fund -- Class 1 Shares.............. 8,163,597 12,913,366 S&P 500(R) Index V.I.S. Fund -- Class 1 Shares...... 17,890,993 28,937,439 Small-Cap Equity V.I.S. Fund -- Class 1 Shares...... 5,426,561 7,559,675 Total Return V.I.S. Fund -- Class 1 Shares.............. 237,132,153 130,908,204 Total Return V.I.S. Fund -- Class 3 Shares.............. 144,793,723 145,856,783 U.S. Equity V.I.S. Fund -- Class 1 Shares.............. 2,859,025 4,641,235 The Alger Portfolios Alger Large Cap Growth Portfolio -- Class I-2 Shares.... 5,537,918 5,270,599 Alger Small Cap Growth Portfolio -- Class I-2 Shares.... 1,897,998 4,756,928 The Prudential Series Fund Jennison 20/20 Focus Portfolio -- Class II Shares..... 109,154 1,108,940 Jennison Portfolio -- Class II Shares..... 419,655 1,139,379 Natural Resources Portfolio -- Class II Shares..... 17,894,271 12,573,499 SP International Growth Portfolio -- Class II Shares..... -- 690 SP Prudential U.S. Emerging Growth Portfolio -- Class II Shares..... -- 713 Wells Fargo Variable Trust Wells Fargo VT Omega Growth Fund -- Class 2............. 1,078,683 1,515,214

(4)Related Party Transactions (a) GLAIC Net purchase payments (premiums) transferred from GLAIC to the Separate Account represent gross premiums recorded by GLAIC on its flexible premium variable deferred and immediate annuity contracts, less deductions retained as compensation for premium taxes. For contracts issued on or after May 1, 1993, the deduction for premium taxes is deferred until the contracts are surrendered. Some contracts permit contract owners to elect to allocate assets to a Guarantee Account that is part of the General Account of GLAIC. Amounts allocated to the Guarantee Account earn interest at the interest rate in effect at the time of such allocation or transfer. The interest rate remains in effect for a guaranteed period of time (at least a period of one year), after which a new rate may be declared. Contract owners may transfer amounts from the Guarantee Account to the subaccounts of the Separate Account and in certain instances transfer amounts from the subaccounts of the Separate Account to the Guarantee Account. Generally, charges are assessed under the contracts to cover surrenders, certain administrative expenses, and the mortality and expense risks that GLAIC assumes, as well as any additional benefits provided under the contract such as optional benefits, as applicable. The surrender charges are assessed to cover certain expenses relating to the sale of a contract. The fees charged to cover administrative expenses and mortality and expense risk charges, as well as through certain electable rider options, are assessed through the daily unit value calculation. Those fees are assessed on the contract owner's daily average net assets in the Separate Account. Other charges assessed to cover certain other administrative expenses, as well as certain optional riders, are assessed by the redemption of units. Note (6) presents the total charge percentage by unit in a range. The unit class may encompass multiple contracts through a combination of one or more electable rider options equal to the total amount assessed on a daily basis. F-72 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 The Separate Account assesses charges associated with the contracts issued. These charges are either assessed as a direct reduction in unit values or through a redemption of units for all contracts contained within the Separate Account. Mortality and Expense Risk Charge 0.40% -- 2.40% of the daily value of (including benefit rider options) the assets invested in each Portfolio This charge is assessed through a (fund). reduction in unit values. Administrative Charge 0.15% -- 0.35% of the daily value of This charge is assessed through a the assets invested in each fund. reduction in unit values. Annual Administrative Charge $0 -- $30 per contract year invested This charge is assessed through a in each fund. redemption in units. Surrender Charge 0.00% -- 9.00% on the value of the This charge is assessed through a accumulation units purchased. redemption in units. (b) Accrued Expenses Payable to Affiliate Charges and deductions made under the contracts for services and benefits unpaid at year-end are accrued and payable to GLAIC. (c) Bonus Credit For certain contracts, transfers from the General Account for payments by GLAIC were paid in the form of bonus credits. Bonus credits are amounts that are added by GLAIC to the premium payments received from contract owners. (d) Capital Brokerage Corporation Capital Brokerage Corporation ("CBC"), an affiliate of GLAIC, is a Washington corporation registered with the SEC under the Securities Exchange Act of 1934 as a broker-dealer and is a member of the Financial Industry Regulatory Authority ("FINRA"). CBC serves as the distributor and principal underwriter for variable annuity contracts, variable life insurance policies, and certain guaranteed income annuity contracts issued by GLAIC. GLAIC pays commissions and other marketing related expenses to CBC. Certain officers and directors of GLAIC are also officers and directors of CBC. (5)Capital Transactions All dividends and capital gain distributions of the Portfolios are automatically reinvested in shares of the distributing Portfolios at their net asset value on the date of distribution. In other words, Portfolio dividends or Portfolio distributions are not paid to contract owners as additional units, but instead are reflected in unit values. The increase (decrease) in outstanding units and amounts by subaccount from capital transactions for the years or lesser periods ended December 31, 2018 and 2017 is reflected in the Statements of Changes in Net Assets. (6)Financial Highlights GLAIC's variable annuity products have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit values, and total returns. A summary by type and by subaccount of the outstanding units, unit values, net assets, expense ratios, investment income ratios, and total return ratios for the years or lesser periods ended December 31, 2018, 2017, 2016, 2015, and 2014 follows. This information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate. The unit fair values and total returns related to these identified F-73 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018 contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented due to the timing of the introduction of new products or funds. Financial highlights are only disclosed for subaccounts that had outstanding units as of December 31, 2018 and were available to contract owners during 2018.

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------ ---------- -------------------- AB Variable Products Series Fund, Inc. AB Balanced Wealth Strategy Portfolio -- Class B 2018........................... 1.45% to 2.55% 988,327 13.03 to 11.47 12,203 1.64% (7.77)% to (8.81)% 2017........................... 1.45% to 2.55% 1,140,590 14.13 to 12.58 15,309 1.79% 13.95% to 12.68% 2016........................... 1.45% to 2.55% 1,323,222 12.40 to 11.17 15,601 1.65% 2.93% to 1.79% 2015........................... 1.45% to 2.55% 1,408,677 12.05 to 10.97 16,209 1.96% (0.17)% to (1.29)% 2014........................... 1.45% to 2.55% 1,625,670 12.07 to 11.11 18,777 2.40% 5.56% to 4.38% AB Global Thematic Growth Portfolio -- Class B 2018........................... 1.45% to 2.10% 108,308 19.94 to 13.16 1,988 0.00% (11.30)% to (11.88)% 2017........................... 1.45% to 2.10% 235,133 22.48 to 14.93 5,051 0.30% 34.33% to 33.45% 2016........................... 1.45% to 2.10% 140,451 16.74 to 11.19 2,138 0.00% (2.31)% to (2.95)% 2015........................... 1.45% to 2.10% 167,574 17.13 to 11.53 2,623 0.00% 1.16% to 0.49% 2014........................... 1.45% to 2.10% 197,638 16.94 to 11.47 3,039 0.00% 3.29% to 2.61% AB Growth and Income Portfolio -- Class B 2018........................... 1.15% to 2.30% 1,812,252 27.39 to 17.62 40,557 0.72% (6.93)% to (8.02)% 2017........................... 1.15% to 2.30% 1,853,902 29.43 to 19.16 44,847 1.25% 17.24% to 15.88% 2016........................... 1.15% to 2.30% 2,080,048 25.10 to 16.53 43,003 0.82% 9.79% to 8.52% 2015........................... 1.15% to 2.30% 2,375,736 22.86 to 15.23 45,113 1.17% 0.26% to (0.91)% 2014........................... 1.15% to 2.30% 2,777,191 22.81 to 15.37 52,841 1.09% 8.03% to 6.78% AB International Value Portfolio -- Class B 2018........................... 1.45% to 2.55% 4,300,130 9.66 to 5.00 28,780 1.12% (24.10)% to (24.95)% 2017........................... 1.45% to 2.55% 4,197,680 12.73 to 6.67 37,401 1.46% 23.29% to 21.92% 2016........................... 1.45% to 2.55% 10,519,424 10.33 to 5.47 72,814 1.23% (2.23)% to (3.32)% 2015........................... 1.45% to 2.55% 8,467,988 10.56 to 5.66 62,126 2.23% 0.92% to (0.21)% 2014........................... 1.45% to 2.55% 7,965,572 10.47 to 5.67 58,385 3.64% (7.82)% to (8.85)% AB Large Cap Growth Portfolio -- Class B 2018........................... 1.45% to 2.30% 1,085,426 31.48 to 22.12 21,750 0.00% 0.83% to (0.04)% 2017........................... 1.45% to 2.30% 1,136,185 31.22 to 22.13 22,320 0.00% 29.77% to 28.65% 2016........................... 1.45% to 2.30% 1,256,372 24.06 to 17.20 18,786 0.00% 0.87% to 0.01% 2015........................... 1.45% to 2.30% 2,063,012 23.85 to 17.20 28,077 0.00% 9.25% to 8.31% 2014........................... 1.45% to 2.30% 1,082,171 21.83 to 15.88 12,849 0.00% 12.19% to 11.22% AB Small Cap Growth Portfolio -- Class B 2018........................... 1.45% to 1.95% 555,831 22.28 to 20.89 12,265 0.00% (2.55)% to (3.05)% 2017........................... 1.45% to 1.95% 291,390 22.86 to 21.54 6,564 0.00% 31.85% to 31.18% 2016........................... 1.45% to 1.95% 328,225 17.34 to 16.42 5,646 0.00% 4.68% to 4.15% 2015........................... 1.45% to 1.95% 396,581 16.56 to 15.77 6,566 0.00% (2.96)% to (3.45)% 2014........................... 1.45% to 2.55% 2,301,358 17.07 to 15.66 37,496 0.00% (3.50)% to (4.57)%

F-74 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- AIM Variable Insurance Funds (Invesco Variable Insurance Funds) Invesco V.I. American Franchise Fund -- Series I shares 2018........................... 0.75% to 1.85% 866,472 18.57 to 17.03 15,185 0.00% (4.35)% to (5.42)% 2017........................... 0.75% to 1.85% 1,218,749 19.41 to 18.01 22,478 0.13% 26.39% to 24.99% 2016........................... 0.75% to 1.85% 466,844 15.36 to 14.41 6,856 0.00% 1.50% to 0.38% 2015........................... 0.75% to 1.85% 519,555 15.13 to 14.35 7,577 0.00% 4.22% to 3.06% 2014........................... 0.75% to 1.85% 587,760 14.52 to 13.92 8,291 0.04% 7.63% to 6.43% Invesco V.I. American Franchise Fund -- Series II shares 2018........................... 1.45% to 2.20% 195,429 27.62 to 21.47 4,468 0.00% (5.29)% to (6.02)% 2017........................... 1.45% to 2.20% 225,446 29.16 to 22.85 5,477 0.00% 25.19% to 24.24% 2016........................... 1.45% to 2.20% 239,707 23.29 to 18.39 4,637 0.00% 0.54% to (0.22)% 2015........................... 1.45% to 2.20% 270,543 23.17 to 18.43 5,215 0.00% 3.23% to 2.45% 2014........................... 1.45% to 2.20% 317,356 22.44 to 17.99 5,960 0.00% 6.60% to 5.79% Invesco V.I. Comstock Fund -- Series II shares 2018........................... 1.45% to 2.35% 1,030,378 25.88 to 14.86 21,926 1.38% (13.64)% to (14.44)% 2017........................... 1.45% to 2.35% 1,174,635 29.96 to 17.37 29,341 1.25% 15.88% to 14.82% 2016........................... 1.45% to 2.55% 4,807,059 25.86 to 13.03 85,076 1.87% 15.30% to 14.01% 2015........................... 1.45% to 2.30% 1,605,895 22.43 to 14.58 30,095 1.59% (7.55)% to (8.35)% 2014........................... 1.45% to 2.30% 1,923,510 24.26 to 15.91 39,308 1.08% 7.52% to 6.59% Invesco V.I. Core Equity Fund -- Series I shares 2018........................... 0.75% to 2.55% 6,673,943 15.53 to 12.40 95,333 1.00% (10.08)% to (11.72)% 2017........................... 0.75% to 2.55% 5,857,135 17.27 to 14.05 94,251 1.04% 12.33% to 10.30% 2016........................... 0.75% to 2.55% 6,221,256 15.37 to 12.73 90,252 1.18% 9.44% to 7.46% 2015........................... 0.75% to 2.30% 591,932 14.05 to 13.87 8,765 0.98% (6.48)% to (7.94)% 2014........................... 0.75% to 2.30% 783,326 15.02 to 15.06 12,532 0.94% 7.34% to 5.66% Invesco V.I. Equity and Income Fund -- Series II shares 2018........................... 1.45% to 2.55% 1,245,249 14.86 to 13.04 17,577 1.95% (11.04)% to (12.04)% 2017........................... 1.45% to 2.55% 1,360,722 16.71 to 14.82 21,684 1.47% 9.18% to 7.96% 2016........................... 1.45% to 2.55% 1,407,768 15.30 to 13.73 20,635 1.65% 13.18% to 11.92% 2015........................... 1.45% to 2.55% 1,563,826 13.52 to 12.27 20,334 2.27% (4.00)% to (5.07)% 2014........................... 1.45% to 2.55% 1,679,031 14.08 to 12.92 22,827 1.56% 7.19% to 5.99% Invesco V.I. Global Real Estate Fund -- Series II shares 2018........................... 1.45% to 2.20% 15,073 15.97 to 8.62 202 3.68% (7.70)% to (8.41)% 2017........................... 1.45% to 2.20% 16,404 17.30 to 9.41 239 2.98% 11.10% to 10.26% 2016........................... 1.45% to 2.20% 19,385 15.57 to 8.54 257 1.32% 0.35% to (0.42)% 2015........................... 1.45% to 2.20% 21,397 15.52 to 8.57 285 3.34% (3.17)% to (3.91)% 2014........................... 1.45% to 2.20% 24,081 16.02 to 8.92 331 0.96% 12.69% to 11.83%

F-75 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- Invesco V.I. Government Securities Fund -- Series I shares 2018............................ 0.75% to 0.75% 166 17.11 to 17.11 3 1.69% (0.20)% to (0.20)% 2017............................ 0.75% to 0.75% 327 17.14 to 17.14 6 2.16% 1.19% to 1.19% 2016............................ 0.75% to 0.75% 292 16.94 to 16.94 5 2.05% 0.47% to 0.47% 2015............................ 0.75% to 0.75% 274 16.86 to 16.86 5 1.90% (0.41)% to (0.41)% 2014............................ 0.75% to 0.75% 259 16.93 to 16.93 4 3.22% 3.36% to 3.36% Invesco V.I. International Growth Fund -- Series II shares 2018 1.45% to 2.55% 3,440,133 17.28 to 9.01 40,942 1.79% (16.44)% to (17.38)% 2017............................ 1.45% to 2.55% 3,619,926 20.68 to 10.91 51,647 1.33% 20.95% to 19.61% 2016............................ 1.45% to 2.55% 3,015,316 17.10 to 9.12 36,773 0.88% (2.13)% to (3.22)% 2015............................ 1.45% to 2.55% 5,404,615 17.47 to 9.42 64,412 1.43% (4.03)% to (5.10)% 2014............................ 1.45% to 2.55% 4,091,537 18.20 to 9.93 52,852 1.35% (1.36)% to (2.46)% Invesco V.I. Technology Fund -- Series I shares 2018............................ 0.75% to 0.75% 4,514 7.24 to 7.24 33 0.00% (1.20)% to (1.20)% 2017............................ 0.75% to 0.75% 0 7.33 to 7.33 0 0.00% 34.12% to 34.12% 2016............................ 0.75% to 0.75% 0 5.47 to 5.47 0 0.00% (1.50)% to (1.50)% 2015............................ 0.75% to 0.75% 308 5.55 to 5.55 2 0.00% 6.01% to 6.01% 2014............................ 0.75% to 0.75% 324 5.24 to 5.24 2 0.00% 10.22% to 10.22% Invesco V.I. Value Opportunities Fund -- Series II shares 2018............................ 1.45% to 2.30% 236,200 16.92 to 10.83 3,821 0.00% (20.53)% to (21.22)% 2017............................ 1.45% to 2.30% 268,667 21.29 to 13.75 5,482 0.01% 15.53% to 14.54% 2016............................ 1.45% to 2.30% 328,828 18.43 to 12.00 5,793 0.08% 16.22% to 15.22% 2015............................ 1.45% to 2.30% 377,784 15.86 to 10.42 5,705 2.26% (11.95)% to (12.71)% 2014............................ 1.45% to 2.30% 427,066 18.01 to 11.93 7,297 1.14% 4.84% to 3.94% American Century Variable Portfolios II, Inc. VP Inflation Protection Fund -- Class II 2018............................ 1.45% to 2.55% 3,189,074 12.16 to 10.51 36,387 2.83% (4.24)% to (5.31)% 2017............................ 1.45% to 2.55% 3,146,747 12.70 to 11.10 37,615 2.57% 2.17% to 1.04% 2016............................ 1.45% to 2.55% 3,620,543 12.43 to 10.98 42,576 1.66% 2.88% to 1.73% 2015............................ 1.45% to 2.55% 1,534,053 12.08 to 10.80 17,704 3.44% (3.88)% to (4.96)% 2014............................ 1.45% to 2.55% 5,713,250 12.57 to 11.36 68,266 1.29% 1.80% to 0.67% American Century Variable Portfolios, Inc. VP Income & Growth Fund -- Class I 2018............................ 1.45% to 2.20% 16,983 26.34 to 13.89 328 1.89% (8.23)% to (8.93)% 2017............................ 1.45% to 2.20% 28,631 28.70 to 15.26 589 2.30% 18.74% to 17.84% 2016............................ 1.45% to 2.20% 41,953 24.17 to 12.95 740 1.51% 11.84% to 10.99% 2015............................ 1.45% to 2.05% 4,549 21.61 to 14.71 85 2.10% (6.99)% to (7.56)% 2014............................ 1.45% to 2.05% 4,666 23.23 to 15.92 94 2.03% 10.87% to 10.20%

F-76 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------- ---------- -------------------- VP International Fund -- Class I 2018........................... 1.45% to 2.20% 35,301 21.20 to 9.21 511 1.26% (16.46)% to (17.10)% 2017........................... 1.45% to 2.20% 35,443 25.38 to 11.10 621 0.81% 29.31% to 28.33% 2016........................... 1.45% to 2.20% 36,661 19.63 to 8.65 507 1.17% (6.87)% to (7.57)% 2015........................... 1.45% to 2.20% 46,651 21.07 to 9.36 684 0.39% (0.70)% to (1.46)% 2014........................... 1.45% to 2.20% 55,397 21.22 to 9.50 822 1.66% (6.88)% to (7.59)% VP Ultra(R) Fund -- Class I 2018........................... 1.85% to 2.05% 1,706 23.56 to 22.17 40 0.26% (1.12)% to (1.32)% 2017........................... 1.85% to 2.05% 1,874 23.82 to 22.47 44 0.39% 29.79% to 29.52% 2016........................... 1.85% to 2.05% 2,520 18.36 to 17.35 46 0.48% 2.52% to 2.31% 2015........................... 1.45% to 2.20% 15,964 22.10 to 16.11 283 0.46% 4.73% to 3.93% 2014........................... 1.45% to 2.20% 19,944 21.10 to 15.50 338 0.10% 8.40% to 7.58% VP Value Fund -- Class I 2018........................... 1.45% to 1.45% 2,190 26.48 to 26.48 58 1.65% (10.48)% to (10.48)% 2017........................... 1.45% to 1.45% 2,329 29.58 to 29.58 69 1.65% 7.18% to 7.18% 2016........................... 1.45% to 1.45% 2,433 27.60 to 27.60 67 1.74% 18.74% to 18.74% 2015........................... 1.45% to 1.45% 2,856 23.25 to 23.25 66 2.10% (5.28)% to (5.28)% 2014........................... 1.45% to 1.45% 3,674 24.54 to 24.54 90 1.51% 11.44% to 11.44% BlackRock Variable Series Funds, Inc. BlackRock Advantage U.S. Total Market V.I. Fund -- Class III Shares 2018........................... 1.45% to 2.30% 178,250 22.10 to 17.14 3,796 1.47% (8.02)% to (8.81)% 2017........................... 1.45% to 2.30% 197,227 24.02 to 18.80 4,569 0.87% 12.19% to 11.22% 2016........................... 1.45% to 2.30% 265,477 21.41 to 16.90 5,489 0.15% 21.62% to 20.58% 2015........................... 1.45% to 2.30% 313,233 17.61 to 14.02 5,313 0.14% (8.13)% to (8.92)% 2014........................... 1.45% to 2.30% 376,551 19.17 to 15.39 6,964 0.12% 3.54% to 2.65% BlackRock Basic Value V.I. Fund -- Class III Shares 2018........................... 1.45% to 2.55% 1,807,923 19.10 to 12.06 27,772 1.43% (9.45)% to (10.47)% 2017........................... 1.45% to 2.55% 2,094,106 21.10 to 13.47 35,744 1.01% 6.45% to 5.27% 2016........................... 1.45% to 2.55% 3,532,167 19.82 to 12.80 56,123 1.91% 16.02% to 14.73% 2015........................... 1.45% to 2.30% 673,830 17.08 to 14.91 10,554 1.19% (7.51)% to (8.31)% 2014........................... 1.45% to 2.30% 776,107 18.47 to 16.26 13,134 1.14% 8.04% to 7.11% BlackRock Global Allocation V.I. Fund -- Class III Shares 2018........................... 1.45% to 2.55% 15,980,228 17.70 to 11.70 213,230 0.81% (8.93)% to (9.95)% 2017........................... 1.45% to 2.55% 18,657,344 19.43 to 12.99 274,506 1.23% 12.06% to 10.82% 2016........................... 1.45% to 2.55% 21,632,566 17.34 to 11.73 284,883 1.17% 2.30% to 1.17% 2015........................... 1.45% to 2.55% 24,906,508 16.95 to 11.59 322,921 1.01% (2.44)% to (3.53)% 2014........................... 1.45% to 2.55% 28,430,985 17.37 to 12.01 379,446 2.11% 0.45% to (0.67)%

F-77 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- BlackRock Large Cap Focus Growth V.I. Fund -- Class III Shares 2018.......................... 1.45% to 1.95% 194,084 25.49 to 23.37 4,797 0.00% 1.27% to 0.75% 2017.......................... 1.45% to 1.95% 169,025 25.17 to 23.20 4,130 0.00% 27.36% to 26.72% 2016.......................... 1.45% to 1.85% 148,951 19.76 to 18.77 2,900 0.44% 5.99% to 5.56% 2015.......................... 1.45% to 1.85% 182,292 18.64 to 17.78 3,356 0.34% 1.03% to 0.62% 2014.......................... 1.45% to 1.85% 230,781 18.46 to 17.67 4,215 0.35% 12.31% to 11.85% Columbia Funds Variable Series Trust II CTIVP/SM /-- Loomis Sayles Growth Fund -- Class 1 2018.......................... 1.45% to 2.55% 2,842,960 13.18 to 12.79 37,270 0.00% (3.82)% to (4.90)% 2017.......................... 1.45% to 2.55% 4,651,585 13.70 to 13.45 63,499 0.00% 31.11% to 29.65% 2016 (4)...................... 1.45% to 2.30% 1,971,256 10.45 to 10.39 20,587 0.00% 6.77% to 5.86% Columbia Variable Portfolio -- Overseas Core Fund -- Class 2 2018.......................... 1.45% to 2.30% 1,219,887 9.98 to 9.75 12,124 2.57% (18.03)% to (18.74)% 2017.......................... 1.45% to 2.30% 1,371,867 12.17 to 12.00 16,657 1.87% 25.34% to 24.27% 2016 (4)...................... 1.45% to 2.40% 1,592,466 9.71 to 9.65 15,451 1.74% (4.27)% to (5.19)% Deutsche DWS Variable Series I DWS Capital Growth VIP -- Class B Shares 2018.......................... 1.45% to 1.50% 500 19.34 to 19.26 10 0.47% (3.30)% to (3.35)% 2017.......................... 1.45% to 1.50% 505 20.00 to 19.93 10 0.46% 24.14% to 24.08% 2016.......................... 1.45% to 1.50% 508 16.11 to 16.06 8 0.52% 2.49% to 2.44% 2015.......................... 1.45% to 1.50% 510 15.72 to 15.68 8 0.38% 6.76% to 6.70% 2014.......................... 1.45% to 1.50% 519 14.72 to 14.69 8 0.33% 11.03% to 10.98% Deutsche DWS Variable Series II DWS CROCI(R) U.S. VIP -- Class B Shares 2018.......................... 1.45% to 2.05% 3,554 12.60 to 12.02 43 2.19% (12.01)% to (12.55)% 2017.......................... 1.45% to 2.05% 3,580 14.32 to 13.75 50 1.20% 20.68% to 19.95% 2016.......................... 1.45% to 2.05% 4,554 11.87 to 11.46 53 0.70% (6.00)% to (6.57)% 2015.......................... 1.45% to 2.05% 4,399 12.62 to 12.27 55 1.13% (8.51)% to (9.07)% 2014.......................... 1.45% to 2.05% 5,172 13.80 to 13.49 71 1.40% 8.76% to 8.09% DWS Small Mid Cap Value VIP -- Class B Shares 2018.......................... 1.45% to 2.05% 420 31.99 to 16.73 10 1.01% (17.55)% to (18.05)% 2017.......................... 1.45% to 2.05% 416 38.80 to 20.42 12 0.37% 8.54% to 7.88% 2016.......................... 1.45% to 2.05% 691 35.75 to 18.93 21 0.23% 14.79% to 14.09% 2015.......................... 1.45% to 2.05% 759 31.14 to 16.59 19 0.00% (3.63)% to (4.22)% 2014.......................... 1.45% to 2.05% 906 32.31 to 17.32 24 0.49% 3.57% to 2.94%

F-78 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- Dreyfus Dreyfus Investment Portfolios MidCap Stock Portfolio -- Initial Shares 2018........................ 1.45% to 1.45% 3,104 28.44 to 28.44 88 0.57% (16.72)% to (16.72)% 2017........................ 1.45% to 1.45% 3,277 34.15 to 34.15 112 1.06% 13.71% to 13.71% 2016........................ 1.45% to 1.45% 3,464 30.04 to 30.04 104 1.06% 13.80% to 13.80% 2015........................ 1.45% to 1.45% 3,679 26.39 to 26.39 97 0.60% (3.70)% to (3.70)% 2014........................ 1.45% to 1.45% 4,021 27.41 to 27.41 110 0.98% 10.47% to 10.47% Dreyfus Variable Investment Fund -- Government Money Market Portfolio 2018........................ 1.45% to 2.05% 117,127 9.43 to 8.77 1,091 1.32% (0.19)% to (0.80)% 2017........................ 1.45% to 2.05% 105,919 9.44 to 8.84 987 0.35% (1.11)% to (1.71)% 2016........................ 1.45% to 2.05% 72,989 9.55 to 9.00 685 0.01% (1.43)% to (2.03)% 2015........................ 1.45% to 2.05% 107,902 9.69 to 9.18 1,025 0.00% (1.45)% to (2.05)% 2014........................ 1.45% to 2.05% 120,942 9.83 to 9.37 1,174 0.00% (1.46)% to (2.06)% The Dreyfus Sustainable U.S. Equity Portfolio, Inc. -- Initial Shares 2018........................ 1.50% to 1.70% 489,649 12.03 to 11.59 5,897 1.75% (5.84)% to (6.04)% 2017........................ 1.50% to 1.70% 498,511 12.78 to 12.33 6,375 1.13% 13.61% to 13.38% 2016........................ 1.50% to 1.70% 504,596 11.25 to 10.88 5,681 1.27% 8.72% to 8.50% 2015........................ 1.45% to 2.20% 563,605 21.85 to 14.16 6,219 1.03% (4.60)% to (5.32)% 2014........................ 1.45% to 2.20% 578,244 22.90 to 14.96 6,739 0.85% 11.81% to 10.96% Eaton Vance Variable Trust VT Floating-Rate Income Fund 2018........................ 1.45% to 2.55% 4,310,088 13.71 to 10.81 55,170 3.78% (1.53)% to (2.63)% 2017........................ 1.45% to 2.55% 3,553,962 13.93 to 11.10 47,028 3.26% 1.93% to 0.79% 2016........................ 1.45% to 2.55% 3,454,127 13.66 to 11.01 45,076 3.48% 7.37% to 6.18% 2015........................ 1.45% to 2.55% 3,659,535 12.72 to 10.37 44,138 3.36% (2.43)% to (3.52)% 2014........................ 1.45% to 2.55% 5,609,211 13.04 to 10.75 68,095 3.14% (0.89)% to (1.99)% Federated Insurance Series Federated High Income Bond Fund II -- Primary Shares 2018........................ 1.15% to 1.60% 312,043 36.81 to 20.92 8,709 8.26% (4.41)% to (4.84)% 2017........................ 1.15% to 1.60% 392,514 38.51 to 21.99 11,433 6.75% 5.71% to 5.24% 2016........................ 1.15% to 1.60% 438,539 36.42 to 20.89 12,261 6.39% 13.50% to 12.99% 2015........................ 1.15% to 1.60% 534,551 32.09 to 18.49 13,214 5.72% (3.69)% to (4.13)% 2014........................ 1.15% to 1.60% 622,420 33.32 to 19.29 15,876 6.35% 1.51% to 1.05% Federated High Income Bond Fund II -- Service Shares 2018........................ 1.45% to 2.30% 480,427 21.99 to 16.50 10,464 8.01% (4.84)% to (5.66)% 2017........................ 1.45% to 2.30% 572,362 23.11 to 17.49 13,105 6.78% 5.02% to 4.12% 2016........................ 1.45% to 2.30% 661,694 22.00 to 16.80 14,457 5.99% 12.87% to 11.90% 2015........................ 1.45% to 2.30% 773,179 19.49 to 15.02 14,898 6.22% (4.13)% to (4.96)% 2014........................ 1.45% to 2.30% 1,313,299 20.33 to 15.80 26,542 5.87% 0.94% to 0.07%

F-79 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------- ---------- ------------------- Federated Kaufmann Fund II -- Service Shares 2018............................. 1.45% to 2.30% 483,018 37.31 to 21.54 16,558 0.00% 2.06% to 1.18% 2017............................. 1.45% to 2.30% 565,395 36.55 to 21.29 18,972 0.00% 26.12% to 25.04% 2016............................. 1.45% to 2.40% 669,966 28.98 to 13.39 17,713 0.00% 1.92% to 0.94% 2015............................. 1.45% to 2.40% 782,264 28.44 to 13.26 20,458 0.00% 4.61% to 3.61% 2014............................. 1.45% to 2.40% 878,186 27.18 to 12.80 21,843 0.00% 7.85% to 6.81% Federated Managed Volatility Fund II -- Primary Shares 2018............................. 1.15% to 1.60% 414,090 28.81 to 13.80 8,569 2.24% (9.55)% to (9.96)% 2017............................. 1.15% to 1.60% 246,565 31.85 to 15.33 5,717 4.00% 16.76% to 16.23% 2016............................. 1.15% to 1.60% 284,028 27.28 to 13.19 5,631 5.04% 6.45% to 5.98% 2015............................. 1.15% to 1.60% 340,033 25.63 to 12.45 6,409 4.50% (8.62)% to (9.03)% 2014............................. 1.15% to 1.60% 422,368 28.04 to 13.68 8,657 3.26% 2.72% to 2.25% Fidelity(R) Variable Insurance Products Fund VIP Asset Manager/SM /Portfolio -- Initial Class 2018............................. 1.15% to 1.60% 813,538 52.21 to 16.53 36,760 1.64% (6.44)% to (6.87)% 2017............................. 1.15% to 1.60% 916,639 55.80 to 17.75 44,319 1.83% 12.80% to 12.29% 2016............................. 1.15% to 1.60% 1,050,104 49.47 to 15.80 44,751 1.44% 1.89% to 1.43% 2015............................. 1.15% to 1.60% 1,180,761 48.56 to 15.58 49,442 1.52% (1.01)% to (1.46)% 2014............................. 1.15% to 1.60% 1,328,926 49.05 to 15.81 56,246 1.45% 4.62% to 4.14% VIP Asset Manager/SM /Portfolio -- Service Class 2 2018............................. 1.45% to 2.30% 317,202 16.53 to 14.38 4,926 1.39% (6.99)% to (7.80)% 2017............................. 1.45% to 2.30% 362,146 17.77 to 15.59 6,060 1.55% 12.10% to 11.13% 2016............................. 1.45% to 2.30% 503,089 15.86 to 14.03 7,542 1.17% 1.35% to 0.48% 2015............................. 1.45% to 2.30% 603,415 15.64 to 13.96 8,975 1.30% (1.51)% to (2.36)% 2014............................. 1.45% to 2.30% 720,857 15.88 to 14.30 10,985 1.18% 4.01% to 3.11% VIP Balanced Portfolio -- Service Class 2 2018............................. 1.45% to 2.55% 3,543,811 17.62 to 14.00 57,219 1.24% (5.83)% to (6.89)% 2017............................. 1.45% to 2.55% 3,994,733 18.71 to 15.04 68,642 1.25% 14.44% to 13.16% 2016............................. 1.45% to 2.55% 4,451,565 16.35 to 13.29 67,008 1.16% 5.43% to 4.26% 2015............................. 1.45% to 2.55% 4,846,903 15.51 to 12.75 69,426 1.29% (1.09)% to (2.20)% 2014............................. 1.45% to 2.55% 5,203,096 15.68 to 13.03 75,563 1.22% 8.42% to 7.21% VIP Contrafund(R) Portfolio -- Initial Class 2018............................. 1.15% to 1.60% 1,750,240 83.06 to 26.64 86,785 0.69% (7.46)% to (7.88)% 2017............................. 1.15% to 1.60% 1,993,834 89.76 to 28.92 106,146 0.98% 20.48% to 19.94% 2016............................. 1.15% to 1.60% 2,386,708 74.50 to 24.11 104,523 0.78% 6.76% to 6.29% 2015............................. 1.15% to 1.60% 2,752,822 69.78 to 22.68 113,615 0.99% (0.49)% to (0.94)% 2014............................. 1.15% to 1.60% 3,170,224 70.12 to 22.90 130,449 0.92% 10.66% to 10.16%

F-80 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- --------------- ------- ---------- -------------------- VIP Contrafund(R) Portfolio -- Service Class 2 2018......................... 1.45% to 2.55% 4,330,377 32.17 to 15.19 96,356 0.41% (8.00)% to (9.03)% 2017......................... 1.45% to 2.55% 6,330,228 34.97 to 16.70 149,150 0.77% 19.83% to 18.50% 2016......................... 1.45% to 2.55% 5,987,180 29.18 to 14.09 121,938 0.44% 6.17% to 4.99% 2015......................... 1.45% to 2.55% 12,956,480 27.49 to 13.42 217,809 0.76% (1.04)% to (2.15)% 2014......................... 1.45% to 2.55% 14,917,759 27.77 to 13.72 254,029 0.67% 10.04% to 8.81% VIP Dynamic Capital Appreciation Portfolio -- Service Class 2 2018......................... 1.45% to 1.70% 60,233 29.32 to 28.17 1,733 0.31% (6.55)% to (6.79)% 2017......................... 1.45% to 1.70% 79,730 31.37 to 30.22 2,466 0.62% 21.72% to 21.41% 2016......................... 1.45% to 1.70% 93,114 25.77 to 24.89 2,362 0.70% 1.17% to 0.92% 2015......................... 1.45% to 1.70% 109,997 25.47 to 24.67 2,724 0.58% (0.44)% to (0.69)% 2014......................... 1.45% to 1.85% 121,092 25.59 to 19.59 3,019 0.23% 9.06% to 8.61% VIP Equity-Income Portfolio -- Initial Class 2018......................... 1.15% to 1.60% 1,259,203 93.06 to 18.37 66,554 2.18% (9.35)% to (9.77)% 2017......................... 1.15% to 1.60% 1,439,981 102.66 to 20.36 83,586 1.67% 11.60% to 11.10% 2016......................... 1.15% to 1.60% 1,699,936 91.99 to 18.32 86,520 2.24% 16.66% to 16.14% 2015......................... 1.15% to 1.60% 1,941,908 78.85 to 15.78 85,286 3.05% (5.07)% to (5.50)% 2014......................... 1.15% to 1.60% 2,273,456 83.06 to 16.70 102,554 2.71% 7.47% to 6.98% VIP Equity-Income Portfolio -- Service Class 2 2018......................... 1.45% to 2.55% 3,615,685 23.35 to 11.43 61,043 1.97% (9.87)% to (10.88)% 2017......................... 1.45% to 2.55% 4,115,160 25.90 to 12.83 77,518 1.58% 11.02% to 9.79% 2016......................... 1.45% to 2.40% 2,765,882 23.33 to 11.86 52,129 1.37% 16.01% to 14.89% 2015......................... 1.45% to 2.55% 7,297,938 20.11 to 10.18 102,422 2.83% (5.63)% to (6.68)% 2014......................... 1.45% to 2.55% 8,323,101 21.31 to 10.91 125,027 2.40% 6.91% to 5.71% VIP Growth & Income Portfolio -- Initial Class 2018......................... 1.15% to 1.60% 669,851 32.94 to 17.72 17,108 0.35% (10.03)% to (10.44)% 2017......................... 0.75% to 1.60% 753,630 23.82 to 19.78 21,216 1.24% 16.02% to 15.04% 2016......................... 0.75% to 1.60% 861,702 20.53 to 17.20 20,834 1.66% 15.21% to 14.23% 2015......................... 0.75% to 1.60% 988,658 17.82 to 15.05 20,872 1.99% (3.01)% to (3.83)% 2014......................... 0.75% to 1.60% 1,161,410 18.37 to 15.65 25,427 1.69% 9.64% to 8.71% VIP Growth & Income Portfolio -- Service Class 2 2018......................... 1.45% to 1.95% 693,248 23.41 to 19.23 12,702 0.19% (10.52)% to (10.97)% 2017......................... 1.45% to 1.95% 938,297 26.16 to 21.60 18,986 1.07% 14.93% to 14.34% 2016......................... 1.45% to 1.95% 1,126,092 22.76 to 18.89 19,602 1.76% 14.13% to 13.56% 2015......................... 1.45% to 1.95% 965,172 19.94 to 16.64 14,971 1.78% (3.95)% to (4.44)% 2014......................... 1.45% to 1.95% 1,108,786 20.76 to 17.41 18,025 1.47% 8.63% to 8.08%

F-81 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- --------------- ------- ---------- -------------------- VIP Growth Opportunities Portfolio -- Initial Class 2018......................... 0.75% to 1.60% 406,228 25.17 to 19.59 10,428 0.12% 11.61% to 10.65% 2017......................... 0.75% to 1.60% 436,435 22.55 to 17.70 10,237 0.30% 33.51% to 32.37% 2016......................... 0.75% to 1.60% 485,643 16.89 to 13.37 8,601 0.31% (0.41)% to (1.26)% 2015......................... 0.75% to 1.60% 597,694 16.96 to 13.55 10,857 0.18% 4.82% to 3.92% 2014......................... 0.75% to 1.60% 636,257 16.18 to 13.03 11,009 0.21% 11.36% to 10.41% VIP Growth Opportunities Portfolio -- Service Class 2 2018......................... 1.45% to 2.30% 295,327 24.02 to 22.62 7,032 0.08% 10.57% to 9.62% 2017......................... 1.45% to 2.30% 179,474 21.72 to 20.64 3,877 0.11% 32.24% to 31.10% 2016......................... 1.45% to 2.40% 244,930 16.43 to 15.66 4,002 0.05% (1.38)% to (2.33)% 2015......................... 1.45% to 2.55% 3,219,169 16.66 to 15.94 53,045 0.00% 3.82% to 2.66% 2014......................... 1.45% to 2.55% 1,637,927 16.05 to 15.53 26,079 0.01% 10.32% to 9.09% VIP Growth Portfolio -- Initial Class 2018......................... 1.15% to 1.60% 942,343 127.95 to 19.63 54,324 0.24% (1.32)% to (1.77)% 2017......................... 1.15% to 1.60% 1,084,069 129.67 to 19.98 62,496 0.22% 33.58% to 32.98% 2016......................... 1.15% to 1.60% 1,270,208 97.07 to 15.03 53,604 0.04% (0.36)% to (0.80)% 2015......................... 1.15% to 1.60% 1,458,117 97.42 to 15.15 60,912 0.25% 5.94% to 5.46% 2014......................... 1.15% to 1.60% 1,653,644 91.95 to 14.36 65,296 0.18% 10.02% to 9.52% VIP Growth Portfolio -- Service Class 2 2018......................... 1.45% to 2.30% 1,014,497 30.57 to 21.83 18,717 0.04% (1.88)% to (2.74)% 2017......................... 1.45% to 2.30% 1,138,148 31.15 to 22.44 21,409 0.08% 32.87% to 31.73% 2016......................... 1.45% to 2.30% 1,126,260 23.45 to 17.04 15,246 0.00% (0.90)% to (1.76)% 2015......................... 1.45% to 2.30% 1,583,867 23.66 to 17.34 23,366 0.03% 5.35% to 4.45% 2014......................... 1.45% to 2.30% 1,784,045 22.46 to 16.60 24,952 0.00% 9.40% to 8.46% VIP Investment Grade Bond Portfolio -- Service Class 2 2018......................... 1.45% to 2.55% 6,078,307 12.90 to 11.32 75,876 1.94% (2.23)% to (3.33)% 2017......................... 1.45% to 2.55% 9,506,920 13.20 to 11.71 121,545 2.17% 2.49% to 1.35% 2016......................... 1.45% to 2.55% 10,950,778 12.87 to 11.55 137,126 2.28% 2.97% to 1.82% 2015......................... 1.45% to 2.55% 11,150,979 12.50 to 11.34 136,060 2.57% (2.29)% to (3.38)% 2014......................... 1.45% to 2.55% 7,898,918 12.80 to 11.74 98,977 1.79% 4.09% to 2.92% VIP Mid Cap Portfolio -- Initial Class 2018......................... 0.75% to 0.75% 212 41.67 to 41.67 9 0.64% (15.18)% to (15.18)% 2017......................... 0.75% to 0.75% 271 49.13 to 49.13 13 0.71% 19.90% to 19.90% 2016......................... 0.75% to 0.75% 268 40.98 to 40.98 11 0.52% 11.39% to 11.39% 2015......................... 0.75% to 0.75% 281 36.78 to 36.78 10 0.40% (2.13)% to (2.13)% 2014......................... 0.75% to 0.75% 654 37.58 to 37.58 25 0.25% 5.49% to 5.49%

F-82 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------- ---------- -------------------- VIP Mid Cap Portfolio -- Service Class 2 2018......................... 1.15% to 2.55% 3,892,358 40.41 to 14.33 94,762 0.39% (15.76)% to (16.96)% 2017......................... 1.15% to 2.55% 4,371,427 47.97 to 17.26 129,568 0.47% 19.15% to 17.47% 2016......................... 1.15% to 2.55% 5,321,532 40.26 to 14.69 134,193 0.33% 10.64% to 9.08% 2015......................... 1.15% to 2.55% 5,166,230 36.39 to 13.47 120,030 0.22% (2.76)% to (4.14)% 2014......................... 1.15% to 2.55% 8,185,089 37.42 to 14.05 178,781 0.02% 4.81% to 3.33% VIP Overseas Portfolio -- Initial Class 2018......................... 0.75% to 1.60% 518,531 13.78 to 13.85 13,286 1.50% (15.45)% to (16.18)% 2017......................... 0.75% to 1.60% 582,607 16.30 to 16.53 17,614 1.40% 29.31% to 28.21% 2016......................... 0.75% to 1.60% 654,951 12.60 to 12.89 15,403 1.36% (5.77)% to (6.57)% 2015......................... 0.75% to 1.60% 762,153 13.37 to 13.80 19,244 1.30% 2.85% to 1.97% 2014......................... 0.75% to 1.60% 858,699 13.00 to 13.53 20,923 1.26% (8.77)% to (9.55)% VIP Value Strategies Portfolio -- Service Class 2 2018......................... 1.45% to 1.85% 107,961 18.55 to 17.47 1,980 0.70% (18.70)% to (19.03)% 2017......................... 1.45% to 1.85% 115,318 22.81 to 21.58 2,609 1.23% 17.36% to 16.89% 2016......................... 1.45% to 2.20% 139,915 19.44 to 18.27 2,693 0.86% 7.69% to 6.87% 2015......................... 1.45% to 2.20% 166,905 18.05 to 17.10 2,983 0.39% (4.59)% to (5.32)% 2014......................... 1.45% to 2.20% 432,519 18.92 to 18.06 8,129 0.68% 4.97% to 4.17% Franklin Templeton Variable Insurance Products Trust Franklin Founding Funds Allocation VIP Fund -- Class 2 Shares 2018......................... 1.45% to 2.55% 4,651,064 12.07 to 10.63 52,976 3.04% (10.97)% to (11.97)% 2017......................... 1.45% to 2.55% 5,446,835 13.56 to 12.08 70,021 2.66% 10.36% to 9.13% 2016......................... 1.45% to 2.55% 6,295,431 12.29 to 11.07 73,692 3.89% 11.54% to 10.30% 2015......................... 1.45% to 2.55% 7,499,839 11.02 to 10.03 79,033 2.95% (7.57)% to (8.61)% 2014......................... 1.45% to 2.55% 8,534,379 11.92 to 10.98 97,685 2.81% 1.36% to 0.23% Franklin Income VIP Fund -- Class 2 Shares 2018......................... 1.45% to 2.55% 15,980,562 17.35 to 11.91 235,328 4.82% (5.70)% to (6.76)% 2017......................... 1.45% to 2.55% 19,017,806 18.40 to 12.77 298,896 4.16% 8.09% to 6.88% 2016......................... 1.45% to 2.55% 22,022,852 17.02 to 11.95 322,404 5.01% 12.37% to 11.12% 2015......................... 1.45% to 2.55% 26,571,825 15.15 to 10.75 347,887 4.63% (8.40)% to (9.43)% 2014......................... 1.45% to 2.55% 30,814,546 16.54 to 11.87 443,304 4.98% 3.10% to 1.95% Franklin Large Cap Growth VIP Fund -- Class 2 Shares 2018......................... 1.45% to 2.05% 6,687 24.66 to 18.50 160 0.00% (2.90)% to (3.50)% 2017......................... 1.45% to 2.05% 7,145 25.40 to 19.17 176 0.62% 26.26% to 25.49% 2016......................... 1.45% to 2.05% 8,656 20.12 to 15.28 168 0.00% (3.21)% to (3.80)% 2015......................... 1.45% to 2.05% 10,902 20.78 to 15.88 219 0.26% 4.09% to 3.46% 2014......................... 1.45% to 2.05% 13,687 19.97 to 15.35 266 1.08% 10.83% to 10.16%

F-83 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------- ---------- -------------------- Franklin Mutual Shares VIP Fund -- Class 2 Shares 2018.......................... 1.45% to 2.30% 684,419 21.85 to 12.64 11,807 2.31% (10.39)% to (11.17)% 2017.......................... 1.45% to 2.30% 807,265 24.39 to 14.23 15,618 2.22% 6.78% to 5.86% 2016.......................... 1.45% to 2.40% 899,932 22.84 to 11.63 16,318 1.97% 14.38% to 13.28% 2015.......................... 1.45% to 2.40% 1,027,325 19.97 to 10.26 16,240 3.02% (6.32)% to (7.22)% 2014.......................... 1.45% to 2.40% 1,178,337 21.32 to 11.06 19,991 1.95% 5.57% to 4.55% Templeton Foreign VIP Fund -- Class 1 Shares 2018.......................... 1.15% to 1.60% 401,348 14.07 to 13.20 5,399 2.92% (16.25)% to (16.63)% 2017.......................... 0.75% to 1.60% 455,848 17.71 to 15.84 7,353 2.75% 16.14% to 15.16% 2016.......................... 1.15% to 1.60% 520,746 14.52 to 13.75 7,303 2.15% 6.25% to 5.78% 2015.......................... 1.15% to 1.60% 560,407 13.67 to 13.00 7,415 3.52% (7.39)% to (7.80)% 2014.......................... 1.15% to 1.60% 626,738 14.76 to 14.10 8,978 2.13% (11.91)% to (12.31)% Templeton Foreign VIP Fund -- Class 2 Shares 2018.......................... 1.45% to 2.20% 42,632 19.52 to 8.42 561 2.63% (16.68)% to (17.31)% 2017.......................... 1.45% to 2.20% 42,788 23.42 to 10.18 682 2.22% 15.01% to 14.13% 2016.......................... 1.45% to 2.20% 76,618 20.37 to 8.92 1,035 1.96% 5.63% to 4.82% 2015.......................... 1.45% to 2.20% 86,044 19.28 to 8.51 1,101 3.08% (7.85)% to (8.55)% 2014.......................... 1.45% to 2.20% 95,930 20.92 to 9.31 1,342 1.82% (12.42)% to (13.09)% Templeton Global Bond VIP Fund -- Class 1 Shares 2018.......................... 1.15% to 1.40% 293,263 18.86 to 18.20 5,388 0.00% 1.03% to 0.78% 2017.......................... 1.15% to 1.40% 318,265 18.66 to 18.06 5,797 0.00% 0.98% to 0.73% 2016.......................... 1.15% to 1.40% 367,813 18.48 to 17.93 6,648 0.00% 2.02% to 1.77% 2015.......................... 1.15% to 1.40% 420,869 18.12 to 17.62 7,468 7.78% (5.20)% to (5.44)% 2014.......................... 1.15% to 1.40% 515,215 19.11 to 18.63 9,653 5.13% 0.95% to 0.69% Templeton Growth VIP Fund -- Class 2 Shares 2018.......................... 1.45% to 2.20% 683,681 11.42 to 10.37 7,356 2.14% (16.09)% to (16.73)% 2017.......................... 1.45% to 2.20% 889,619 13.61 to 12.45 11,558 1.61% 16.79% to 15.90% 2016.......................... 1.45% to 2.20% 794,807 11.65 to 10.74 8,798 2.09% 8.03% to 7.21% 2015.......................... 1.45% to 2.20% 929,502 10.79 to 10.02 9,516 2.59% (7.84)% to (8.54)% 2014.......................... 1.45% to 2.20% 1,058,142 11.70 to 10.95 11,802 1.28% (4.22)% to (4.95)% Goldman Sachs Variable Insurance Trust Goldman Sachs Government Money Market Fund -- Service Shares 2018.......................... 0.75% to 2.45% 13,748,569 9.73 to 8.71 126,903 1.46% 0.72% to (1.02)% 2017.......................... 0.75% to 2.55% 13,526,631 9.66 to 8.75 124,949 0.50% (0.24)% to (2.05)% 2016.......................... 0.75% to 2.55% 14,233,505 9.68 to 8.93 132,976 0.04% (0.71)% to (2.50)% 2015.......................... 0.75% to 2.55% 14,686,855 9.75 to 9.16 139,172 0.01% (0.74)% to (2.54)% 2014.......................... 0.75% to 2.55% 16,425,706 9.82 to 9.40 158,168 0.01% (0.74)% to (2.54)%

F-84 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- Goldman Sachs Large Cap Value Fund -- Institutional Shares 2018........................... 1.15% to 1.60% 331,048 16.71 to 15.82 5,486 1.22% (9.51)% to (9.93)% 2017........................... 1.15% to 1.60% 385,587 18.46 to 17.56 7,080 1.58% 8.60% to 8.11% 2016........................... 1.15% to 1.60% 440,569 17.00 to 16.24 7,464 2.05% 10.30% to 9.80% 2015........................... 1.15% to 1.60% 540,209 15.41 to 14.79 8,322 1.35% (5.51)% to (5.94)% 2014........................... 1.15% to 1.60% 631,084 16.31 to 15.73 10,331 1.32% 11.64% to 11.13% Goldman Sachs Mid Cap Value Fund -- Institutional Shares 2018........................... 1.15% to 2.30% 882,773 37.03 to 16.53 29,982 1.26% (11.49)% to (12.53)% 2017........................... 1.15% to 2.30% 1,043,479 41.84 to 18.89 39,934 0.61% 9.80% to 8.52% 2016........................... 1.15% to 2.30% 1,673,110 38.11 to 17.41 51,961 1.43% 12.23% to 10.93% 2015........................... 1.15% to 2.30% 1,386,533 33.96 to 15.69 43,127 0.35% (10.29)% to (11.33)% 2014........................... 1.15% to 2.30% 1,835,320 37.85 to 17.70 59,983 0.99% 12.26% to 10.96% JPMorgan Insurance Trust JPMorgan Insurance Trust Core Bond Portfolio -- Class 1 2018........................... 1.45% to 2.20% 196,996 14.15 to 12.21 2,659 2.55% (1.41)% to (2.16)% 2017........................... 1.45% to 2.20% 248,134 14.35 to 12.48 3,406 2.52% 2.07% to 1.30% 2016........................... 1.45% to 2.20% 278,782 14.06 to 12.32 3,768 2.62% 0.64% to (0.12)% 2015........................... 1.45% to 2.20% 286,159 13.97 to 12.34 3,859 4.24% (0.35)% to (1.11)% 2014........................... 1.45% to 2.20% 233,274 14.02 to 12.48 3,179 3.84% 3.40% to 2.61% JPMorgan Insurance Trust Mid Cap Value Portfolio -- Class 1 2018........................... 1.45% to 2.20% 20,960 29.26 to 9.31 332 0.85% (13.12)% to (13.79)% 2017........................... 1.45% to 2.20% 15,289 33.68 to 10.80 295 0.91% 12.12% to 11.74% 2016........................... 1.45% to 2.05% 3,206 30.04 to 28.67 95 0.88% 13.04% to 12.35% 2015........................... 1.45% to 2.05% 3,695 26.58 to 25.52 97 1.01% (4.07)% to (4.65)% 2014........................... 1.45% to 2.05% 3,942 27.71 to 26.76 108 0.78% 13.44% to 12.75% JPMorgan Insurance Trust Small Cap Core Portfolio -- Class 1 2018........................... 1.45% to 2.20% 5,359 29.60 to 11.34 93 0.47% (13.21)% to (13.88)% 2017........................... 1.45% to 2.20% 10,889 34.11 to 13.17 208 0.32% 13.56% to 12.70% 2016........................... 1.45% to 2.20% 13,229 30.04 to 11.69 231 0.02% 18.48% to 38.30% 2015........................... 1.45% to 1.45% 292 25.35 to 25.35 7 0.14% (6.66)% to (6.66)% 2014........................... 1.45% to 1.45% 292 27.16 to 27.16 8 0.11% 8.01% to 8.01% JPMorgan Insurance Trust U.S. Equity Portfolio -- Class 1 2018........................... 1.45% to 2.20% 58,934 23.24 to 18.16 1,297 0.72% (7.53)% to (8.24)% 2017........................... 1.45% to 2.20% 47,172 25.14 to 19.79 1,129 0.88% 20.56% to 19.65% 2016........................... 1.45% to 2.20% 59,840 20.85 to 16.54 1,196 0.95% 9.33% to 8.50% 2015........................... 1.45% to 2.20% 63,151 19.07 to 15.25 1,158 1.16% (0.60)% to (1.35)% 2014........................... 1.45% to 2.20% 70,097 19.19 to 15.46 1,294 0.94% 12.25% to 11.40%

F-85 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------- ---------- ------------------- Janus Aspen Series Janus Henderson Balanced Portfolio -- Institutional Shares 2018.............................. 1.15% to 1.60% 1,541,152 60.82 to 25.77 63,108 2.15% (0.48)% to (0.94)% 2017.............................. 1.15% to 1.60% 1,754,161 61.11 to 26.01 72,839 1.59% 17.07% to 16.55% 2016.............................. 1.15% to 1.60% 2,031,781 52.20 to 22.32 71,783 2.18% 3.40% to 2.94% 2015.............................. 1.15% to 1.60% 2,351,321 50.48 to 21.68 80,984 1.58% (0.54)% to (0.99)% 2014.............................. 1.15% to 1.60% 2,693,920 50.76 to 21.90 93,337 1.73% 7.26% to 6.78% Janus Henderson Balanced Portfolio -- Service Shares 2018.............................. 1.45% to 2.55% 4,557,252 26.29 to 16.36 93,108 1.78% (1.03)% to (2.14)% 2017.............................. 1.45% to 2.55% 5,193,649 26.57 to 16.72 107,672 1.37% 16.43% to 15.13% 2016.............................. 1.45% to 2.55% 5,802,246 22.82 to 14.52 103,508 1.92% 2.82% to 1.67% 2015.............................. 1.45% to 2.55% 6,591,303 22.19 to 14.29 115,048 1.37% (1.05)% to (2.15)% 2014.............................. 1.45% to 2.55% 7,502,341 22.43 to 14.60 132,960 1.50% 6.67% to 5.48% Janus Henderson Enterprise Portfolio -- Institutional Shares 2018.............................. 1.15% to 1.60% 770,451 95.21 to 26.35 41,324 0.26% (1.57)% to (2.01)% 2017.............................. 1.15% to 1.60% 891,322 96.72 to 26.89 48,550 0.62% 25.96% to 25.39% 2016.............................. 1.15% to 1.60% 1,051,330 76.79 to 21.45 45,233 0.14% 11.07% to 10.57% 2015.............................. 1.15% to 1.60% 1,209,980 69.14 to 19.40 46,516 0.63% 2.83% to 2.37% 2014.............................. 1.15% to 1.60% 1,377,241 67.23 to 18.95 51,555 0.16% 11.23% to 10.73% Janus Henderson Enterprise Portfolio -- Service Shares 2018.............................. 1.50% to 1.70% 320,337 14.07 to 13.55 4,945 0.13% (2.16)% to (2.36)% 2017.............................. 1.50% to 1.70% 354,600 14.38 to 13.88 5,538 0.53% 25.19% to 24.93% 2016.............................. 1.50% to 1.70% 387,640 11.49 to 11.11 4,824 0.02% 10.43% to 10.20% 2015.............................. 1.50% to 1.70% 414,922 10.40 to 10.08 4,758 0.52% 2.21% to 2.00% 2014.............................. 1.50% to 1.70% 434,592 10.18 to 9.88 4,893 0.03% 10.56% to 10.33% Janus Henderson Flexible Bond Portfolio -- Institutional Shares 2018.............................. 0.75% to 1.60% 397,166 22.53 to 19.21 9,430 3.02% (1.75)% to (2.59)% 2017.............................. 0.75% to 1.60% 477,104 22.93 to 19.73 11,653 2.74% 2.84% to 1.97% 2016.............................. 0.75% to 1.60% 611,114 22.29 to 19.34 14,878 2.78% 1.70% to 0.83% 2015.............................. 0.75% to 1.60% 688,004 21.92 to 19.18 16,464 2.27% (0.53)% to (1.38)% 2014.............................. 0.75% to 1.60% 755,890 22.04 to 19.45 18,247 3.56% 4.15% to 3.26% Janus Henderson Forty Portfolio -- Institutional Shares 2018.............................. 0.75% to 1.60% 712,447 26.22 to 27.85 31,632 1.16% 1.21% to 0.35% 2017.............................. 0.75% to 1.60% 808,548 25.90 to 27.75 35,582 0.00% 29.34% to 28.24% 2016.............................. 0.75% to 1.60% 948,927 20.03 to 21.64 32,376 0.00% 1.43% to 0.57% 2015.............................. 0.75% to 1.60% 1,102,917 19.75 to 21.52 37,281 0.00% 11.38% to 10.43% 2014.............................. 0.75% to 1.60% 1,281,669 17.73 to 19.49 38,853 0.16% 7.92% to 7.00%

F-86 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- Janus Henderson Forty Portfolio -- Service Shares 2018.............................. 1.45% to 2.35% 450,821 39.63 to 22.85 11,059 1.23% 0.24% to (0.69)% 2017.............................. 1.45% to 2.35% 526,903 39.53 to 23.01 12,868 0.00% 28.12% to 26.95% 2016.............................. 1.45% to 2.55% 2,184,706 30.86 to 16.09 37,015 0.00% 0.47% to (0.65)% 2015.............................. 1.45% to 2.55% 2,712,925 30.71 to 16.20 48,727 0.00% 10.31% to 9.08% 2014.............................. 1.45% to 2.55% 3,088,721 27.84 to 14.85 47,635 0.03% 6.89% to 5.70% Janus Henderson Global Research Portfolio -- Institutional Shares 2018.............................. 1.15% to 1.60% 1,123,327 49.65 to 14.25 35,421 1.11% (7.94)% to (8.36)% 2017.............................. 1.15% to 1.60% 1,300,011 53.93 to 15.55 43,987 0.81% 25.57% to 25.01% 2016.............................. 1.15% to 1.60% 1,495,339 42.95 to 12.44 40,317 1.07% 0.89% to 0.44% 2015.............................. 1.15% to 1.60% 1,705,388 42.57 to 12.39 45,357 0.65% (3.41)% to (3.85)% 2014.............................. 1.15% to 1.60% 1,923,354 44.07 to 12.88 52,706 1.07% 6.21% to 5.73% Janus Henderson Global Research Portfolio -- Service Shares 2018.............................. 1.50% to 1.70% 285,686 9.13 to 8.79 2,720 0.93% (8.48)% to (8.67)% 2017.............................. 1.50% to 1.70% 356,238 9.98 to 9.63 3,698 0.69% 24.79% to 24.54% 2016.............................. 1.50% to 1.70% 407,053 8.00 to 7.73 3,384 0.94% 0.29% to 0.09% 2015.............................. 1.50% to 1.70% 457,016 7.97 to 7.72 3,804 0.51% (3.99)% to (4.19)% 2014.............................. 1.50% to 1.70% 530,936 8.30 to 8.06 4,619 0.96% 5.57% to 5.36% Janus Henderson Global Technology Portfolio -- Service Shares 2018.............................. 1.15% to 1.70% 586,687 13.56 to 11.97 7,432 1.11% (0.26)% to (0.82)% 2017.............................. 1.15% to 1.70% 658,251 13.60 to 12.07 8,399 0.45% 43.25% to 42.46% 2016.............................. 1.15% to 1.70% 660,400 9.49 to 8.47 5,893 0.09% 12.54% to 11.92% 2015.............................. 1.15% to 1.70% 709,850 8.44 to 7.57 5,655 0.00% 3.44% to 2.87% 2014.............................. 1.15% to 1.70% 827,786 8.15 to 7.36 6,404 0.00% 8.09% to 7.49% Janus Henderson Overseas Portfolio -- Institutional Shares 2018.............................. 0.75% to 1.60% 705,173 13.36 to 19.18 18,334 1.76% (15.58)% to (16.31)% 2017.............................. 0.75% to 1.60% 765,523 15.83 to 22.91 23,652 1.64% 30.14% to 29.03% 2016.............................. 0.75% to 1.60% 890,300 12.16 to 17.76 21,291 4.65% (7.15)% to (7.94)% 2015.............................. 0.75% to 1.60% 979,039 13.10 to 19.29 25,442 0.58% (9.28)% to (10.05)% 2014.............................. 0.75% to 1.60% 1,124,435 14.44 to 21.45 32,588 3.07% (12.53)% to (13.28)% Janus Henderson Overseas Portfolio -- Service Shares 2018.............................. 1.45% to 2.10% 168,333 24.87 to 15.65 2,019 1.66% (16.37)% to (16.93)% 2017.............................. 1.45% to 2.10% 181,510 29.75 to 18.84 2,611 1.55% 28.91% to 28.07% 2016.............................. 1.45% to 2.10% 206,876 23.07 to 14.71 2,326 4.67% (8.06)% to (8.66)% 2015.............................. 1.45% to 2.10% 293,437 25.10 to 16.11 3,539 0.50% (10.13)% to (10.72)% 2014.............................. 1.45% to 2.10% 333,015 27.92 to 18.04 4,515 3.03% (13.38)% to (13.95)% Janus Henderson Research Portfolio -- Institutional Shares 2018.............................. 1.15% to 1.60% 1,128,053 52.41 to 16.81 35,820 0.54% (3.70)% to (4.14)% 2017.............................. 1.15% to 1.60% 1,347,021 54.42 to 17.53 43,863 0.39% 26.41% to 25.85% 2016.............................. 1.15% to 1.60% 1,569,263 43.05 to 13.93 40,553 0.53% (0.66)% to (1.10)% 2015.............................. 1.15% to 1.60% 1,844,187 43.33 to 14.09 47,984 0.63% 4.13% to 3.66% 2014.............................. 1.15% to 1.60% 2,075,652 41.61 to 13.59 51,729 0.36% 11.69% to 11.19%

F-87 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- ------------------- Janus Henderson Research Portfolio -- Service Shares 2018............................. 1.50% to 1.70% 209,137 12.68 to 12.21 2,751 0.35% (4.30)% to (4.50)% 2017............................. 1.50% to 1.70% 263,890 13.25 to 12.79 3,614 0.24% 25.65% to 25.39% 2016............................. 1.50% to 1.70% 313,350 10.55 to 10.20 3,429 0.38% (1.23)% to (1.43)% 2015............................. 1.50% to 1.70% 352,027 10.68 to 10.35 3,905 0.45% 3.50% to 3.29% 2014............................. 1.50% to 1.70% 405,834 10.32 to 10.02 4,353 0.22% 11.04% to 10.82% Legg Mason Partners Variable Equity Trust ClearBridge Variable Aggressive Growth Portfolio -- Class II 2018............................. 1.45% to 2.30% 184,804 29.93 to 19.11 5,229 0.37% (9.90)% to (10.68)% 2017............................. 1.45% to 2.30% 197,561 33.22 to 21.40 6,236 0.21% 14.31% to 13.33% 2016............................. 1.45% to 2.30% 277,181 29.06 to 18.88 7,729 0.31% (0.52)% to (1.38)% 2015............................. 1.45% to 2.30% 767,178 29.21 to 19.15 21,895 0.05% (3.36)% to (4.20)% 2014............................. 1.45% to 2.30% 1,126,370 30.23 to 19.99 33,343 0.01% 18.33% to 17.31% ClearBridge Variable Dividend Strategy Portfolio -- Class I 2018............................. 1.15% to 1.60% 231,022 17.43 to 16.53 3,886 1.50% (5.96)% to (6.39)% 2017............................. 1.15% to 1.60% 278,057 18.53 to 17.66 4,991 1.46% 17.81% to 17.28% 2016............................. 1.15% to 1.60% 318,210 15.73 to 15.06 4,859 1.54% 13.67% to 13.16% 2015............................. 1.15% to 1.60% 338,426 13.84 to 13.31 4,557 1.67% (5.40)% to (5.83)% 2014............................. 1.15% to 1.60% 432,408 14.63 to 14.13 6,169 2.15% 12.31% to 11.80% ClearBridge Variable Dividend Strategy Portfolio -- Class II 2018............................. 1.45% to 2.35% 467,731 16.55 to 14.87 7,448 1.29% (6.38)% to (7.24)% 2017............................. 1.45% to 2.45% 583,700 17.68 to 15.86 9,961 1.38% 17.29% to 16.10% 2016............................. 1.45% to 2.45% 575,027 15.08 to 13.66 8,381 1.67% 13.12% to 11.98% 2015............................. 1.45% to 2.45% 444,855 13.33 to 12.20 5,674 1.62% (5.82)% to (6.78)% 2014............................. 1.45% to 2.45% 564,374 14.15 to 13.09 7,671 1.98% 11.84% to 10.70% ClearBridge Variable Large Cap Value Portfolio -- Class I 2018............................. 1.15% to 2.30% 770,584 31.85 to 10.38 12,735 1.46% (9.93)% to (10.98)% 2017............................. 1.15% to 2.30% 914,407 35.36 to 11.66 16,990 1.44% 13.52% to 12.20% 2016............................. 1.15% to 2.30% 870,195 31.15 to 10.39 15,224 1.48% 11.70% to 10.41% 2015............................. 1.15% to 2.30% 1,342,584 27.89 to 9.41 18,994 1.40% (3.98)% to (5.10)% 2014............................. 1.15% to 2.30% 1,933,536 29.04 to 9.92 26,732 1.82% 10.42% to (10.82)% MFS(R) Variable Insurance Trust MFS(R) Investors Trust Series -- Service Class Shares 2018............................. 1.45% to 1.85% 253,105 27.52 to 21.56 4,767 0.44% (7.08)% to (7.46)% 2017............................. 1.45% to 1.85% 296,647 29.62 to 23.30 5,957 0.55% 21.25% to 20.76% 2016............................. 1.45% to 1.95% 320,659 24.43 to 18.84 5,309 0.57% 6.75% to 6.21% 2015............................. 1.45% to 1.95% 370,130 22.88 to 17.74 5,733 0.68% (1.50)% to (2.00)% 2014............................. 1.45% to 1.95% 436,811 23.23 to 18.10 6,863 0.76% 9.11% to 8.55%

F-88 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- --------------- ------ ---------- -------------------- MFS(R) New Discovery Series -- Service Class Shares 2018......................... 1.15% to 2.30% 504,833 34.59 to 22.65 11,086 0.00% (2.85)% to (3.99)% 2017......................... 1.15% to 2.30% 648,451 35.60 to 23.59 14,585 0.00% 24.88% to 23.44% 2016......................... 1.15% to 2.30% 663,903 28.51 to 19.11 12,301 0.00% 7.55% to 6.30% 2015......................... 1.15% to 2.30% 790,831 26.51 to 17.98 13,662 0.00% (3.27)% to (4.40)% 2014......................... 1.15% to 2.30% 997,867 27.40 to 18.81 17,853 0.00% (8.56)% to (9.62)% MFS(R) Total Return Series -- Service Class Shares 2018......................... 1.45% to 2.55% 2,530,043 19.77 to 12.14 37,918 1.94% (7.24)% to (8.29)% 2017......................... 1.45% to 2.55% 2,899,860 21.32 to 13.23 46,828 2.15% 10.41% to 9.18% 2016......................... 1.45% to 2.55% 3,278,568 19.31 to 12.12 48,180 2.71% 7.24% to 6.05% 2015......................... 1.45% to 2.55% 3,461,844 18.00 to 11.43 47,611 2.35% (2.02)% to (3.11)% 2014......................... 1.45% to 2.55% 3,952,024 18.38 to 11.80 55,659 1.69% 6.67% to 5.48% MFS(R) Utilities Series -- Service Class Shares 2018......................... 1.45% to 2.20% 481,645 41.77 to 23.92 13,016 0.84% (0.66)% to (1.42)% 2017......................... 1.45% to 2.20% 564,347 42.04 to 24.27 15,293 3.90% 12.84% to 11.98% 2016......................... 1.45% to 2.20% 700,916 37.26 to 21.67 16,772 3.44% 9.63% to 8.80% 2015......................... 1.45% to 2.20% 790,491 33.99 to 19.92 17,322 3.86% (15.99)% to (16.63)% 2014......................... 1.45% to 2.20% 909,300 40.46 to 23.89 23,852 1.90% 10.84% to 9.99% MFS(R) Variable Insurance Trust II MFS(R) Massachusetts Investors Growth Stock Portfolio -- Service Class Shares 2018......................... 1.45% to 2.30% 471,532 12.70 to 12.29 5,961 0.32% (0.89)% to (1.75)% 2017......................... 1.45% to 2.30% 649,434 12.81 to 12.51 8,292 0.42% 26.25% to 25.16% 2016......................... 1.45% to 2.30% 728,673 10.15 to 9.99 7,379 0.38% 4.31% to 3.41% 2015......................... 1.45% to 2.30% 752,771 9.73 to 9.66 7,317 0.47% (3.53)% to (4.36)% MFS(R) Strategic Income Portfolio -- Service Class Shares 2018......................... 1.45% to 1.45% 2,405 10.70 to 10.70 26 3.81% (3.53)% to (3.53)% 2017......................... 1.45% to 1.45% 2,592 11.09 to 11.09 29 4.37% 4.35% to 4.35% 2016......................... 1.45% to 1.45% 3,021 10.63 to 10.63 32 2.96% 6.44% to 6.44% 2015......................... 1.45% to 1.45% 2,133 9.99 to 9.99 21 4.94% (3.48)% to (3.48)% 2014......................... 1.45% to 1.45% 2,710 10.35 to 10.35 28 3.06% 1.49% to 1.49% Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Fund/VA -- Non-Service Shares 2018......................... 1.15% to 1.60% 484,217 105.63 to 19.17 22,209 0.33% (6.82)% to (7.24)% 2017......................... 1.15% to 1.60% 581,375 113.36 to 20.66 28,780 0.23% 25.38% to 24.81% 2016......................... 1.15% to 1.60% 683,004 90.41 to 16.55 27,894 0.41% (3.33)% to (3.76)% 2015......................... 1.15% to 1.60% 784,080 93.52 to 17.20 32,998 0.09% 2.35% to 1.89% 2014......................... 1.15% to 1.60% 897,175 91.37 to 16.88 36,968 0.45% 14.08% to 13.57%

F-89 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------- ---------- -------------------- Oppenheimer Capital Appreciation Fund/VA -- Service Shares 2018........................ 1.45% to 2.10% 181,202 23.23 to 16.62 3,765 0.00% (7.33)% to (7.94)% 2017........................ 1.45% to 2.10% 207,692 25.07 to 18.05 4,645 0.01% 24.68% to 23.86% 2016........................ 1.45% to 2.10% 243,018 20.11 to 14.57 4,386 0.11% (3.84)% to (4.47)% 2015........................ 1.45% to 2.10% 310,174 20.91 to 15.26 5,764 0.00% 1.77% to 1.10% 2014........................ 1.45% to 2.10% 354,443 20.54 to 15.09 6,506 0.18% 13.46% to 12.71% Oppenheimer Conservative Balanced Fund/VA -- Non-Service Shares 2018........................ 1.15% to 1.60% 331,475 47.01 to 14.33 9,405 1.98% (6.42)% to (6.84)% 2017........................ 1.15% to 1.60% 349,035 50.23 to 15.38 10,783 1.95% 8.00% to 7.51% 2016........................ 1.15% to 1.60% 375,945 46.51 to 14.30 11,158 2.39% 4.05% to 3.58% 2015........................ 1.15% to 1.60% 402,826 44.70 to 13.81 11,608 2.23% (0.33)% to (0.78)% 2014........................ 1.15% to 1.60% 461,073 44.85 to 13.92 13,513 2.06% 6.95% to 6.47% Oppenheimer Conservative Balanced Fund/VA -- Service Shares 2018........................ 1.45% to 2.55% 1,637,908 12.22 to 8.40 16,895 1.73% (6.91)% to (7.95)% 2017........................ 1.45% to 2.55% 1,871,679 13.13 to 9.12 20,762 1.74% 7.37% to 6.18% 2016........................ 1.45% to 2.55% 2,125,261 12.22 to 8.59 22,007 2.17% 3.44% to 2.29% 2015........................ 1.45% to 2.55% 2,185,061 11.82 to 8.40 22,063 2.02% (0.89)% to (2.00)% 2014........................ 1.45% to 2.55% 2,531,912 11.92 to 8.57 25,907 1.80% 6.45% to 5.26% Oppenheimer Discovery Mid Cap Growth Fund/VA -- Non-Service Shares 2018........................ 1.15% to 1.60% 374,862 92.62 to 18.57 19,640 0.00% (7.17)% to (7.59)% 2017........................ 1.15% to 1.60% 432,839 99.77 to 20.09 24,387 0.03% 27.31% to 26.74% 2016........................ 1.15% to 1.60% 507,574 78.37 to 15.85 22,242 0.00% 1.16% to 0.70% 2015........................ 1.15% to 1.60% 585,281 77.47 to 15.74 25,561 0.00% 5.38% to 4.90% 2014........................ 1.15% to 1.60% 647,143 73.51 to 15.01 26,705 0.00% 4.57% to 4.09% Oppenheimer Discovery Mid Cap Growth Fund/VA -- Service Shares 2018........................ 1.45% to 1.70% 267,456 26.27 to 25.16 6,940 0.00% (7.67)% to (7.91)% 2017........................ 1.45% to 1.70% 297,883 28.45 to 27.32 8,383 0.00% 26.60% to 26.28% 2016........................ 1.45% to 1.70% 293,900 22.48 to 21.63 6,550 0.00% 0.60% to 0.35% 2015........................ 1.45% to 1.85% 336,364 22.34 to 16.95 7,457 0.00% 4.81% to 4.38% 2014........................ 1.45% to 1.85% 147,843 21.32 to 16.23 3,123 0.00% 3.99% to 3.57% Oppenheimer Global Fund/VA -- Service Shares 2018........................ 1.45% to 2.55% 2,993,966 32.33 to 12.47 59,097 0.82% (14.66)% to (15.62)% 2017........................ 1.45% to 2.55% 3,989,415 37.88 to 14.78 85,383 0.75% 34.35% to 32.86% 2016........................ 1.45% to 2.55% 4,229,281 28.19 to 11.13 66,987 0.87% (1.60)% to (2.70)% 2015........................ 1.45% to 2.55% 6,026,230 28.65 to 11.44 100,044 1.05% 2.17% to 1.03% 2014........................ 1.45% to 2.55% 6,676,251 28.04 to 11.32 108,068 0.82% 0.58% to (0.55)%

F-90 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------- ---------- -------------------- Oppenheimer Global Strategic Income Fund/VA -- Non-Service Shares 2018........................ 1.15% to 1.60% 271,723 10.30 to 10.01 2,756 4.96% (5.50)% to (5.93)% 2017........................ 1.15% to 1.60% 317,036 10.90 to 10.64 3,410 2.33% 5.05% to 4.58% 2016........................ 1.15% to 1.60% 370,143 10.37 to 10.18 3,800 5.06% 5.31% to 4.84% 2015........................ 1.15% to 1.60% 417,605 9.85 to 9.71 4,080 5.85% (3.38)% to (3.82)% 2014........................ 1.15% to 1.60% 468,622 10.19 to 10.09 4,751 4.35% 1.66% to 1.20% Oppenheimer Main Street Fund/ VA -- Service Shares 2018........................ 1.45% to 2.55% 6,477,488 25.30 to 13.84 106,779 0.83% (9.44)% to (10.45)% 2017........................ 1.45% to 2.55% 5,972,530 27.93 to 15.46 109,416 1.04% 14.95% to 13.67% 2016........................ 1.45% to 2.55% 6,989,674 24.30 to 13.60 112,227 0.71% 9.69% to 8.47% 2015........................ 1.45% to 2.55% 5,780,439 22.15 to 12.54 85,090 0.66% 1.61% to 0.48% 2014........................ 1.45% to 2.55% 6,848,063 21.80 to 12.48 99,834 0.58% 8.80% to 7.59% Oppenheimer Main Street Small Cap Fund(R)/VA -- Service Shares 2018........................ 1.45% to 2.55% 1,209,301 34.53 to 14.37 27,499 0.06% (11.84)% to (12.83)% 2017........................ 1.45% to 2.55% 1,764,040 39.16 to 16.48 44,261 0.66% 12.26% to 11.01% 2016........................ 1.45% to 2.55% 2,224,035 34.89 to 14.85 50,574 0.27% 15.97% to 14.68% 2015........................ 1.45% to 2.55% 3,078,484 30.08 to 12.95 56,932 0.64% (7.46)% to (8.49)% 2014........................ 1.45% to 2.55% 3,580,428 32.50 to 14.15 74,081 0.72% 10.04% to 8.81% Oppenheimer Total Return Bond Fund/VA -- Non-Service Shares 2018........................ 1.15% to 1.60% 429,783 28.11 to 11.67 8,094 3.33% (2.17)% to (2.61)% 2017........................ 1.15% to 1.60% 504,740 28.73 to 11.99 9,660 2.44% 3.39% to 2.92% 2016........................ 1.15% to 1.60% 576,236 27.79 to 11.65 10,454 3.68% 2.08% to 1.63% 2015........................ 1.15% to 1.60% 642,440 27.22 to 11.46 11,554 4.07% (0.20)% to (0.65)% 2014........................ 1.15% to 1.60% 732,970 27.28 to 11.54 13,217 5.33% 6.03% to 5.55% PIMCO Variable Insurance Trust All Asset Portfolio -- Advisor Class Shares 2018........................ 1.45% to 1.95% 418,106 14.54 to 13.56 5,902 3.00% (6.83)% to (7.30)% 2017........................ 1.45% to 1.95% 475,796 15.61 to 14.63 7,232 4.31% 11.74% to 11.17% 2016........................ 1.45% to 2.20% 549,188 13.97 to 12.78 7,488 2.29% 11.27% to 10.43% 2015........................ 1.45% to 2.20% 655,747 12.55 to 11.57 8,052 3.06% (10.50)% to (11.19)% 2014........................ 1.45% to 2.20% 791,211 14.03 to 13.03 10,890 4.87% (1.00)% to (1.76)% High Yield Portfolio -- Administrative Class Shares 2018........................ 1.45% to 2.55% 2,234,519 20.44 to 13.46 40,479 5.09% (4.07)% to (5.14)% 2017........................ 1.45% to 2.55% 2,282,326 21.31 to 14.19 43,833 4.87% 5.07% to 3.90% 2016........................ 1.45% to 2.55% 2,587,388 20.28 to 13.66 48,057 5.25% 10.82% to 9.59% 2015........................ 1.45% to 2.55% 5,300,327 18.30 to 12.47 83,624 5.25% (3.07)% to (4.15)% 2014........................ 1.45% to 2.55% 4,895,798 18.88 to 13.01 83,952 5.28% 1.84% to 0.70%

F-91 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------- ---------- ------------------- International Bond Portfolio (U.S. Dollar Hedged) -- Administrative Class Shares 2018............................. 1.50% to 1.70% 109,339 20.09 to 19.35 2,166 1.31% 0.58% to 0.38% 2017............................. 1.50% to 1.70% 117,382 19.97 to 19.27 2,313 4.03% 1.23% to 1.02% 2016............................. 1.50% to 1.70% 160,909 19.73 to 19.08 3,124 1.41% 4.88% to 4.67% 2015............................. 1.50% to 1.70% 185,736 18.81 to 18.23 3,444 2.90% (1.21)% to (1.41)% 2014............................. 1.50% to 1.70% 215,190 19.04 to 18.49 4,052 1.82% 9.49% to 9.27% Long-Term U.S. Government Portfolio -- Administrative Class Shares 2018............................. 1.45% to 2.55% 1,818,776 19.24 to 15.17 34,646 2.40% (3.80)% to (4.88)% 2017............................. 1.45% to 2.55% 1,706,498 20.00 to 15.95 34,651 2.17% 7.38% to 6.18% 2016............................. 1.45% to 2.55% 1,922,497 18.63 to 15.02 36,780 1.89% (0.78)% to (1.89)% 2015............................. 1.45% to 2.35% 775,453 18.78 to 16.67 17,253 2.06% (2.82)% to (3.71)% 2014............................. 1.45% to 2.35% 921,205 19.32 to 17.31 20,909 2.30% 22.22% to 21.10% Low Duration Portfolio -- Administrative Class Shares 2018............................. 1.45% to 2.55% 3,842,840 12.22 to 10.36 44,146 1.93% (1.12)% to (2.23)% 2017............................. 1.45% to 2.55% 3,735,829 12.36 to 10.59 43,446 1.34% (0.12)% to (1.23)% 2016............................. 1.45% to 2.55% 3,835,039 12.37 to 10.73 44,857 1.51% (0.06)% to (1.17)% 2015............................. 1.45% to 2.55% 6,541,673 12.38 to 10.85 76,352 2.77% (1.14)% to (2.24)% 2014............................. 1.45% to 2.55% 15,659,839 12.52 to 11.10 184,450 1.13% (0.61)% to (1.72)% Total Return Portfolio -- Administrative Class Shares 2018............................. 1.15% to 2.55% 10,578,875 16.66 to 12.77 165,306 2.52% (1.68)% to (3.08)% 2017............................. 1.15% to 2.55% 13,884,221 16.94 to 13.18 219,063 2.02% 3.71% to 2.25% 2016............................. 1.15% to 2.55% 15,999,977 16.34 to 12.89 244,475 2.09% 1.50% to 0.07% 2015............................. 1.15% to 2.55% 18,775,625 16.09 to 12.88 284,510 5.04% (0.71)% to (2.11)% 2014............................. 1.15% to 2.55% 16,532,808 16.21 to 13.16 260,145 2.14% 3.08% to 1.62% Rydex Variable Trust NASDAQ -- 100(R) Fund 2018............................. 1.45% to 1.85% 269,561 41.30 to 29.74 4,093 0.00% (3.24)% to (3.64)% 2017............................. 1.45% to 1.85% 341,457 42.68 to 30.86 5,427 0.00% 29.23% to 28.70% 2016............................. 1.45% to 1.85% 656,436 33.03 to 23.98 7,066 0.00% 4.45% to 4.03% 2015............................. 1.45% to 2.00% 1,511,920 31.62 to 22.63 16,265 0.00% 6.67% to 6.08% 2014............................. 1.45% to 1.85% 435,509 29.64 to 21.70 5,025 0.00% 15.74% to 15.27% State Street Variable Insurance Series Funds, Inc. Income V.I.S. Fund -- Class 1 Shares 2018............................. 0.75% to 2.30% 1,101,994 17.59 to 10.93 15,782 2.12% (2.17)% to (3.70)% 2017............................. 0.75% to 2.30% 1,252,511 17.98 to 11.35 18,445 1.97% 2.47% to 0.88% 2016............................. 0.75% to 2.30% 1,513,016 17.54 to 11.25 22,059 1.74% 2.21% to 0.62% 2015............................. 0.75% to 2.35% 1,702,881 17.16 to 11.26 24,410 2.10% (1.17)% to (2.76)% 2014............................. 0.75% to 2.35% 1,953,175 17.37 to 11.58 28,535 2.17% 4.33% to 2.65%

F-92 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ---------- -------------- ------- ---------- -------------------- Premier Growth Equity V.I.S. Fund -- Class 1 Shares 2018.......................... 0.75% to 2.10% 1,101,406 23.66 to 21.51 24,920 0.13% (3.39)% to (4.72)% 2017.......................... 0.75% to 2.10% 1,281,157 24.49 to 22.58 30,374 0.31% 27.38% to 25.66% 2016.......................... 0.75% to 2.10% 1,481,093 19.23 to 17.97 27,772 0.49% 1.70% to 0.32% 2015.......................... 0.75% to 2.10% 1,661,850 18.90 to 17.91 30,959 0.46% 2.52% to 1.13% 2014.......................... 0.75% to 2.10% 1,840,075 18.44 to 17.71 33,758 0.47% 13.20% to 11.66% Real Estate Securities V.I.S. Fund -- Class 1 Shares 2018.......................... 0.75% to 2.55% 1,283,920 51.63 to 13.38 40,405 2.42% (6.42)% to (8.13)% 2017.......................... 0.75% to 2.55% 1,424,736 55.18 to 14.57 49,404 1.54% 5.05% to 3.15% 2016.......................... 0.75% to 2.55% 1,730,701 52.52 to 14.12 58,910 2.31% 7.19% to 5.26% 2015.......................... 0.75% to 2.55% 2,028,003 49.00 to 13.42 63,576 1.69% 3.78% to 1.90% 2014.......................... 0.75% to 2.55% 2,413,755 47.22 to 13.17 73,692 1.64% 30.91% to 28.54% S&P 500(R) Index V.I.S. Fund -- Class 1 Shares 2018.......................... 0.75% to 2.30% 4,870,590 20.47 to 19.48 130,223 1.64% (5.45)% to (6.93)% 2017.......................... 0.75% to 2.30% 5,498,219 21.65 to 20.93 158,837 1.76% 20.60% to 18.72% 2016.......................... 0.75% to 2.30% 6,092,527 17.95 to 17.63 147,455 1.87% 10.78% to 9.05% 2015.......................... 0.75% to 2.35% 6,549,734 16.21 to 14.81 145,375 2.15% 0.32% to (1.30)% 2014.......................... 0.75% to 2.35% 7,374,743 16.15 to 15.01 165,498 1.60% 12.43% to 10.62% Small-Cap Equity V.I.S. Fund -- Class 1 Shares 2018.......................... 1.15% to 2.30% 859,762 33.36 to 18.74 26,186 0.00% (10.74)% to (11.79)% 2017.......................... 1.15% to 2.30% 1,018,621 37.37 to 21.24 34,982 0.00% 11.42% to 10.12% 2016.......................... 1.15% to 2.30% 1,184,299 33.54 to 19.29 36,669 0.00% 22.34% to 20.93% 2015.......................... 1.15% to 2.30% 1,314,746 27.42 to 15.95 33,273 0.00% (5.23)% to (6.33)% 2014.......................... 1.15% to 2.30% 1,402,842 28.93 to 17.03 37,546 0.00% 2.58% to 1.38% Total Return V.I.S. Fund -- Class 1 Shares 2018.......................... 0.75% to 2.30% 42,795,149 19.00 to 13.74 721,183 2.16% (7.05)% to (8.51)% 2017.......................... 0.75% to 2.30% 45,934,260 20.45 to 15.02 841,510 2.01% 14.71% to 12.93% 2016.......................... 0.75% to 2.30% 48,464,940 17.82 to 13.30 782,552 1.87% 5.55% to 3.91% 2015.......................... 0.75% to 2.30% 51,257,510 16.89 to 12.80 791,790 1.68% (1.87)% to (3.41)% 2014.......................... 0.75% to 2.30% 58,415,695 17.21 to 13.25 922,904 1.64% 4.53% to 2.90% Total Return V.I.S. Fund -- Class 3 Shares 2018.......................... 1.45% to 2.55% 38,387,797 13.67 to 10.79 467,141 1.79% (7.97)% to (9.00)% 2017.......................... 1.45% to 2.55% 46,322,370 14.85 to 11.85 615,662 1.63% 13.60% to 12.33% 2016.......................... 1.45% to 2.55% 56,704,147 13.07 to 10.55 668,174 1.52% 4.55% to 3.38% 2015.......................... 1.45% to 2.55% 66,025,483 12.51 to 10.21 748,990 1.44% (2.77)% to (3.86)% 2014.......................... 1.45% to 2.55% 75,427,525 12.86 to 10.62 883,287 1.40% 3.55% to 2.39%

F-93 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- --------- -------------- ------ ---------- -------------------- U.S. Equity V.I.S. Fund -- Class 1 Shares 2018............................ 0.75% to 1.85% 961,239 21.46 to 19.99 19,507 0.80% (4.13)% to (5.19)% 2017............................ 0.75% to 1.85% 1,122,669 22.38 to 21.09 23,908 0.75% 19.02% to 17.70% 2016............................ 0.75% to 1.85% 1,264,220 18.80 to 17.92 22,936 1.13% 8.49% to 7.29% 2015............................ 0.75% to 1.85% 1,586,449 17.33 to 16.70 27,033 1.04% (3.04)% to (4.11)% 2014............................ 0.75% to 1.85% 1,698,913 17.87 to 17.41 30,273 0.92% 11.93% to 10.69% The Alger Portfolios Alger Large Cap Growth Portfolio -- Class I-2 Shares 2018............................ 1.15% to 1.60% 948,595 41.41 to 17.38 24,702 0.00% 1.02% to 0.57% 2017............................ 1.15% to 1.60% 1,088,395 40.99 to 17.28 28,030 0.00% 26.99% to 26.42% 2016............................ 1.15% to 1.60% 1,231,571 32.28 to 13.67 25,240 0.00% (1.97)% to (2.41)% 2015............................ 1.15% to 1.60% 1,416,213 32.93 to 14.00 29,781 0.00% 0.55% to 0.09% 2014............................ 1.15% to 1.60% 1,570,602 32.75 to 13.99 33,343 0.15% 9.71% to 9.21% Alger Small Cap Growth Portfolio -- Class I-2 Shares 2018............................ 1.15% to 1.60% 721,107 27.39 to 20.00 17,042 0.00% 0.26% to (0.19)% 2017............................ 1.15% to 1.60% 846,955 27.31 to 20.04 20,024 0.00% 27.26% to 26.68% 2016............................ 1.15% to 1.60% 1,003,019 21.46 to 15.82 18,672 0.00% 5.02% to 4.55% 2015............................ 1.15% to 1.60% 1,128,630 20.44 to 15.13 20,045 0.00% (4.43)% to (4.86)% 2014............................ 1.15% to 1.60% 1,285,786 21.39 to 15.90 24,154 0.00% (0.72)% to (1.17)% The Prudential Series Fund Jennison 20/20 Focus Portfolio -- Class II Shares 2018............................ 1.45% to 2.30% 158,163 33.94 to 19.30 4,894 0.00% (7.10)% to (7.90)% 2017............................ 1.45% to 2.30% 184,615 36.54 to 20.95 6,143 0.00% 27.87% to 26.77% 2016............................ 1.45% to 2.30% 213,849 28.57 to 16.53 5,491 0.00% (0.23)% to (1.09)% 2015............................ 1.45% to 2.30% 241,257 28.64 to 16.71 6,242 0.00% 4.33% to 3.43% 2014............................ 1.45% to 2.30% 282,631 27.45 to 16.16 7,005 0.00% 5.16% to 4.25% Jennison Portfolio -- Class II Shares 2018............................ 1.45% to 2.30% 146,007 34.87 to 22.85 4,864 0.00% (2.62)% to (3.47)% 2017............................ 1.45% to 2.30% 163,659 35.81 to 23.67 5,576 0.00% 34.16% to 33.01% 2016............................ 1.45% to 2.30% 168,178 26.69 to 17.80 4,273 0.00% (2.72)% to (3.55)% 2015............................ 1.45% to 2.30% 267,063 27.44 to 18.45 7,026 0.00% 9.42% to 8.48% 2014............................ 1.45% to 2.30% 112,321 25.07 to 17.01 2,549 0.00% 7.99% to 7.06% Natural Resources Portfolio -- Class II Shares 2018............................ 1.45% to 2.55% 5,833,693 11.55 to 5.08 32,878 0.00% (19.61)% to (20.51)% 2017............................ 1.45% to 2.55% 4,833,745 14.37 to 6.39 34,397 0.00% (1.97)% to (3.06)% 2016............................ 1.45% to 2.55% 3,243,289 14.66 to 6.59 24,862 0.00% 23.02% to 21.65% 2015............................ 1.45% to 2.55% 2,722,626 11.92 to 5.42 17,314 0.00% (29.88)% to (30.67)% 2014............................ 1.45% to 2.55% 2,499,308 17.00 to 7.81 23,988 0.00% (20.96)% to (21.84)%

F-94 GENWORTH LIFE & ANNUITY VA SEPARATE ACCOUNT 1 Notes to Financial Statements -- Continued December 31, 2018

Expense as a Net Investment % of Average Assets Income Net Assets (1) Units Unit Value 000s Ratio (2) Total Return (3) -------------- ------- -------------- ------ ---------- -------------------- SP International Growth Portfolio -- Class II Shares 2018............................... 1.55% to 1.55% 14 12.10 to 12.10 0 0.00% (14.55)% to (14.55)% 2017............................... 1.55% to 1.55% 63 14.16 to 14.16 1 0.00% 33.33% to 33.33% 2016............................... 1.55% to 1.55% 115 10.62 to 10.62 1 0.00% (5.64)% to (5.64)% 2015............................... 1.55% to 1.55% 172 11.25 to 11.25 2 0.00% 1.49% to 1.49% 2014............................... 1.55% to 1.55% 229 11.09 to 11.09 3 0.00% (7.57)% to (7.57)% SP Prudential U.S. Emerging Growth Portfolio -- Class II Shares 2018............................... 1.55% to 1.55% 653 23.67 to 23.67 15 0.00% (9.60)% to (9.60)% 2017............................... 1.55% to 1.55% 671 26.18 to 26.18 18 0.00% 20.06% to 20.06% 2016............................... 1.55% to 1.55% 686 21.81 to 21.81 15 0.00% 2.21% to 2.21% 2015............................... 1.55% to 1.55% 704 21.34 to 21.34 15 0.00% (4.24)% to (4.24)% 2014............................... 1.55% to 1.55% 1,170 22.28 to 22.28 26 0.00% 7.46% to 7.46% Wells Fargo Variable Trust Wells Fargo VT Omega Growth Fund -- Class 2 2018............................... 1.45% to 1.95% 272,196 25.48 to 24.41 6,896 0.00% (1.19)% to (1.69)% 2017............................... 1.45% to 1.95% 312,906 25.79 to 24.83 8,030 0.01% 32.65% to 31.98% 2016............................... 1.45% to 1.95% 121,717 19.44 to 18.81 2,358 0.00% (0.94)% to (1.44)% 2015............................... 1.45% to 1.95% 156,144 19.62 to 19.08 3,055 0.00% (0.13)% to (0.63)% 2014............................... 1.45% to 1.95% 189,559 19.65 to 19.21 3,716 0.00% 2.36% to 1.84%

-------- (1)Expenses as a percentage of average net assets represent the annualized asset-based contract expenses of the Separate Account, consisting of mortality and expense risk charges, administrative expenses, and other rider charges for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to the contract owner through the redemption of units and expenses of the underlying Portfolios are excluded. (2)The investment income ratio represents the ordinary dividends received by the subaccount from the Portfolio divided by average net assets. (3)The total return represents a range of minimum and maximum annual total returns for the year or lesser period indicated and includes deductions for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Standardized total returns shown separately in a prospectus or marketing material for a product supported by the Separate Account include the maximum contract charges that may be assessed to any contract through both the daily unit value calculation and the redemption of units. Accordingly, these standardized total returns will generally reflect a lower return than the total return. (4)The ratios of expenses and net investment income to average net assets are annualized for periods less than a year. F-95 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Financial Statements Years Ended December 31, 2018, 2017 and 2016 (With Independent Auditors' Report Thereon) GENWORTH LIFE AND ANNUITY INSURANCE COMPANY INDEX TO STATUTORY FINANCIAL STATEMENTS

PAGE ---- Independent Auditors' Report............................................... F-1 Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus.................................................................. F-3 Statutory Statements of Summary of Operations.............................. F-5 Statutory Statements of Changes in Capital and Surplus..................... F-6 Statutory Statements of Cash Flow.......................................... F-7 Notes to Statutory Financial Statements.................................... F-9

Independent Auditors' Report The Board of Directors Genworth Life and Annuity Insurance Company: We have audited the accompanying financial statements of Genworth Life and Annuity Insurance Company, which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2018 and 2017, and the related statutory statements of summary of operations, changes in capital and surplus, and cash flow for each of the years in the three-year period ended December 31, 2018, and the related notes to the statutory financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with statutory accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 1 to the financial statements, the financial statements are prepared by Genworth Life and Annuity Insurance Company using statutory accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the financial statements of the variances between the statutory accounting practices described in Note 1/ /and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the variances between statutory accounting practices and U.S. generally accepted accounting principles discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of Genworth Life and Annuity Insurance Company as of December 31, 2018 and 2017, or the results of its operations or its cash flows for each of the years in the three-year period ended December 31, 2018. F-1 Opinion on Statutory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of Genworth Life and Annuity Insurance Company as of December 31, 2018 and 2017, and the results of its operations and its cash flow for each of the years in the three-year period ended December 31, 2018, in accordance with statutory accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance described in Note 1. /s/ KPMG LLP Richmond, Virginia April 22, 2019 F-2 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus December 31, 2018 and 2017 (Dollar amounts in millions, except per share amounts)

2018 2017 --------- --------- Admitted Assets Cash and invested assets: Bonds..................... $11,329.0 $11,278.2 Preferred stocks -- nonaffiliates........... 46.5 46.5 Common stocks -- affiliates.............. 180.4 196.6 Common stocks -- nonaffiliates........... 24.0 16.1 Mortgage loans............ 1,867.2 1,775.4 Real estate............... 12.1 10.8 Contract loans............ 507.5 522.4 Cash, cash equivalents and short-term investments............. 307.2 360.0 Other invested assets..... 84.0 93.8 Receivable for securities.............. 4.9 5.2 Derivative assets......... 42.3 82.7 Securities lending reinvested collateral.............. 24.0 43.5 --------- --------- Total cash and invested assets..... 14,429.1 14,431.2 Amounts recoverable from reinsurers and funds held....................... 471.4 466.0 Deferred tax asset........... 153.3 109.8 Guaranty funds receivable.... 7.4 8.0 Premiums and accounts receivable................. 492.4 519.5 Investment income due and accrued................ 131.5 128.1 Receivable from parent, subsidiaries and affiliates................. -- 30.5 Current Federal and foreign income tax recoverable and interest thereon........... 24.9 0.8 Other assets................. 23.0 28.5 Separate account assets...... 5,451.1 6,722.1 --------- --------- Total admitted assets.............. $21,184.1 $22,444.5 ========= =========

F-3 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus -- Continued December 31, 2018 and 2017 (Dollar amounts in millions, except per share amounts)

2018 2017 --------- --------- Liabilities and Capital and Surplus Liabilities Aggregate reserves -- life.................... $ 7,188.3 $ 7,229.2 Aggregate reserves -- annuity contracts....... 4,811.3 4,816.5 Aggregate reserves -- accident and health policies................ 1.3 1.5 Liability for deposit-type contracts............... 775.9 647.8 Liability for policy and contract claims..... 107.9 91.0 Policyholders dividends............... 0.3 0.3 Premiums and annuity considerations received in advance..... 6.5 7.5 Other amounts payable on reinsurance.......... 127.3 133.7 Interest maintenance reserve................. 25.0 37.4 Commissions payable....... 0.2 0.4 General expenses due or accrued.............. 1.5 1.9 Transfers to separate accounts due or accrued................. (14.2) (34.9) Taxes, licenses, and fees due or accrued..... 9.2 11.6 Current Federal income tax payable...... -- 6.6 Unearned investment income.................. 7.2 7.6 Amounts withheld or retained by company as agent or trustee..... 11.3 11.8 Remittances and items not allocated........... 22.0 30.3 Asset valuation reserve................. 75.2 98.9 Payable to parent, subsidiaries and affiliates.............. 4.6 -- Funds held under coinsurance and treaties with unauthorized reinsurers.............. 1,379.6 1,253.0 Payable for securities lending...... 24.0 43.5 Payable for securities.... 4.6 7.0 Derivative liabilities.... -- 2.0 Payable for collateral received from derivatives counterparties.......... 10.1 29.0 Separate account liabilities............. 5,451.1 6,722.1 --------- --------- Total liabilities..... 20,030.2 21,155.7 --------- --------- Capital and surplus: Common stock, Class A ($1,000 par value. 50,000 shares authorized; 25,651 shares issued and outstanding)............ 25.6 25.6 Paid in surplus........... 1,456.7 1,456.7 Unassigned deficit........ (328.4) (193.5) --------- --------- Total capital and surplus............. 1,153.9 1,288.8 --------- --------- Total liabilities and capital and surplus............. $21,184.1 $22,444.5 ========= =========

See accompanying notes to statutory financial statements. F-4 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Summary of Operations Years ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2018 2017 2016 -------- -------- --------- Revenues: Premiums and annuity considerations.............. $ 6.4 $ 520.7 $(2,356.6) Considerations for supplementary contracts with life contingencies............... 17.1 18.8 18.1 Net investment income......... 639.8 669.2 741.6 Amortization of interest maintenance reserve......... -- -- (2.8) Commissions and expense allowances on reinsurance ceded........ 274.2 143.8 3,325.3 Reserve adjustments on reinsurance ceded........ (11.4) (82.7) (404.5) Income from fees associated with investment management, administration, and contract guarantees from separate accounts.................... 116.2 124.7 127.2 Other income.................. 29.2 28.5 26.1 -------- -------- --------- Total revenues............ 1,071.5 1,423.0 1,474.4 -------- -------- --------- Benefits: Death benefits................ 400.2 441.2 417.2 Matured endowments............ 3.0 2.4 1.4 Annuity benefits.............. 402.5 417.8 414.9 Disability benefits and benefits under accident and health policies.................... 3.9 4.1 4.5 Surrender benefits and other fund withdrawals................. 701.7 783.8 735.7 Payments on supplementary contracts with life contingencies............... 13.4 12.8 12.1 Interest and adjustments on contracts or deposit-type contract funds.............. 25.4 24.5 25.2 Increase (decrease) in aggregate reserves -- life, annuity and accident and health......... (46.3) 233.2 (333.4) -------- -------- --------- Total benefits............ 1,503.8 1,919.8 1,277.6 -------- -------- --------- Expenses: Commissions................... 124.5 188.6 560.7 General insurance expenses.................... 137.4 140.8 166.6 Insurance taxes, licenses, and fees, excluding Federal income taxes................ 25.4 25.3 33.0 Net transfer from separate accounts........... (565.6) (607.7) (575.8) Other expenses................ 57.1 (250.2) 85.2 -------- -------- --------- Total expenses............ (221.2) (503.2) 269.7 -------- -------- --------- Total benefits and expenses............ 1,282.6 1,416.6 1,547.3 -------- -------- --------- Gain (loss) before Federal income taxes and realized capital gains (losses), net........ (211.1) 6.4 (72.9) Federal and foreign income taxes................... (18.8) 51.9 120.4 -------- -------- --------- Loss before realized capital gains (losses)............. (192.3) (45.5) (193.3) Realized capital gains (losses), net.................. (17.2) 13.4 (107.9) -------- -------- --------- Net loss............... $ (209.5) $ (32.1) $ (301.2) ======== ======== =========

See accompanying notes to statutory financial statements. F-5 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Changes in Capital and Surplus Years ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

Common stock ------------- Unassigned Paid in surplus Amount Shares surplus (deficit) Total ------ ------ -------- ---------- -------- Balances as of December 31, 2015....... $25.6 25,651 $1,485.2 $ 158.0 $1,668.8 Net loss............... -- -- -- (301.2) (301.2) Change in net unrealized capital gains and losses..... -- -- -- 34.0 34.0 Change in net deferred tax assets.. -- -- -- (209.5) (209.5) Change in nonadmitted assets............... -- -- -- 213.9 213.9 Change in liability for reinsurance in unauthorized companies............ -- -- -- 59.7 59.7 Change in asset valuation reserve.... -- -- -- (10.9) (10.9) Payment under tax assumption agreement. -- -- (36.0) -- (36.0) Changes in surplus as a result of reinsurance.......... -- -- -- 68.7 68.7 Other.................. -- -- 7.5 (7.5) -- ----- ------ -------- ------- -------- Balances as of December 31, 2016....... 25.6 25,651 1,456.7 5.2 1,487.5 Net loss............... -- -- -- (32.1) (32.1) Change in net unrealized capital gains and losses..... -- -- -- (28.9) (28.9) Change in net deferred tax assets.. -- -- -- (128.1) (128.1) Change in nonadmitted assets............... -- -- -- 39.3 39.3 Change in liability for reinsurance in unauthorized companies............ -- -- -- 0.3 0.3 Change in asset valuation reserve.... -- -- -- 1.6 1.6 Change in surplus as a result of reinsurance.......... -- -- -- (39.6) (39.6) Prior period correction - universal life insurance reserves, net of tax benefit of $6.0.............. -- -- -- (11.2) (11.2) ----- ------ -------- ------- -------- Balances as of December 31, 2017....... 25.6 25,651 1,456.7 (193.5) 1,288.8 Net loss............... -- -- -- (209.5) (209.5) Change in net unrealized capital gains and losses..... -- -- -- (138.7) (138.7) Change in net unrealized foreign exchange capital gains and losses..... -- -- -- (0.5) (0.5) Change in net deferred tax assets.. -- -- -- 34.0 34.0 Change in nonadmitted assets............... -- -- -- 13.1 13.1 Change in asset valuation reserve.... -- -- -- 23.7 23.7 Change in surplus as a result of reinsurance.......... -- -- -- 39.8 39.8 Special tax allocation agreement with Genworth Financial... -- -- -- 103.2 103.2 ----- ------ -------- ------- -------- Balances as of December 31, 2018....... $25.6 25,651 $1,456.7 $(328.4) $1,153.9 ===== ====== ======== ======= ========

See accompanying notes to statutory financial statements. F-6 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Cash Flow Years ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2018 2017 2016 -------- -------- -------- Cash flow from operations: Premiums collected net of reinsurance.................. $ 30.6 $ 503.9 $ 302.4 Net investment income................. 619.0 638.5 716.4 Miscellaneous income.................. 448.2 167.2 105.6 -------- -------- -------- Total cash provided from revenues................ 1,097.8 1,309.6 1,124.4 -------- -------- -------- Benefit and loss related payments.................... 1,445.1 1,565.3 1,145.3 Net transfers from separate, segregated accounts, and protected cell accounts............................ (586.3) (615.5) (570.2) Commissions, expenses paid, and aggregate write-ins for deductions.......................... 283.3 264.5 324.1 Federal and foreign taxes paid, net of capital gains (losses)............................ 6.3 16.4 127.7 -------- -------- -------- Total cash applied to benefits and general and other expenses..................... 1,148.4 1,230.7 1,026.9 -------- -------- -------- Net cash provided by (applied to) operations............... (50.6) 78.9 97.5 -------- -------- -------- Cash flow from investments: Proceeds from investments sold, matured, or repaid: Bonds............................. 1,614.4 1,605.3 1,704.2 Stocks............................ 0.6 33.6 309.1 Mortgage loans.................... 210.9 135.5 215.8 Real estate....................... 0.2 -- 17.8 Other invested assets.......................... 7.7 8.9 10.1 Miscellaneous proceeds........................ 49.9 102.9 6.7 -------- -------- -------- Total investment proceeds..................... 1,883.7 1,886.2 2,263.7 -------- -------- -------- Cost of investments acquired (long-term only): Bonds............................. 1,663.3 1,393.6 1,683.0 Stocks............................ 8.5 11.8 117.5 Mortgage loans.................... 302.9 239.8 167.1 Real estate....................... 1.9 0.9 0.1 Other invested assets.......................... 0.1 10.0 1.4 Miscellaneous applications.................... 2.5 34.9 128.4 -------- -------- -------- Total investments acquired..................... 1,979.2 1,691.0 2,097.5 Net increase (decrease) in contract loans and premium notes....................... (15.9) (11.8) 30.9 -------- -------- -------- Net cash provided by (applied to) investments.............. (79.6) 207.0 135.3 -------- -------- -------- Cash flow from financing and miscellaneous sources: Cash provided (applied): Net deposits on deposit-type contracts and other insurance liabilities..................... 0.2 (165.5) (213.4) Capital and paid in surplus, less treasury stock........................... -- -- (28.5) Other cash provided (applied)....................... 77.2 (61.7) 111.7 -------- -------- -------- Net cash provided by (applied to) financing and miscellaneous sources.................. 77.4 (227.2) (130.2) -------- -------- -------- Net change in cash, cash equivalents and short-term investments................. (52.8) 58.7 102.6 Cash, cash equivalents and short-term investments: Beginning of year..................... 360.0 301.3 198.7 -------- -------- -------- End of year........................... $ 307.2 $ 360.0 $ 301.3 ======== ======== ========

F-7 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Statutory Statements of Cash Flow -- Continued Years ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2018 2017 2016 ------- ------- --------- Supplemental information: Interest capitalization -- net investment income.............. $ (14.3) $ (17.6) $ (21.1) Interest capitalization -- bond purchases...... (14.3) (17.6) (21.1) Securities exchanged -- bond proceeds.... (143.2) (94.6) (123.5) Securities exchanged -- bond purchases... (143.2) (94.6) (123.5) Tax sharing agreement transfer of taxes payable -- taxes paid................ (3.9) (8.1) (3.9) Tax sharing agreement transfer of taxes payable -- stock proceeds............ (231.0) (8.1) (3.9) Tax sharing agreement transfer of taxes payable -- stock purchases........... (330.3) -- -- Tax sharing agreement transfer of taxes payable -- special tax allocation agreement........... (103.2) -- -- Rivermont account value adjustment -- benefits and loss related............. payments.............. (27.5) -- -- Rivermont account value adjustment -- stock purchases..... (27.5) -- -- Transfer from bonds to other invested assets -- bonds..... -- (4.0) -- Transfer from bonds to other invested assets -- other invested assets..... -- (4.0) -- Reinsurance treaties -- premiums......... -- (36.2) 2,601.2 Reinsurance treaties -- commissions...... -- (207.1) (2,543.2) Reinsurance treaties -- bond purchases... -- (177.3) -- Reinsurance treaties -- mortgage loan purchases........... -- (48.7) -- Reinsurance treaties -- contract loans... -- 14.9 -- Reinsurance treaties -- stock purchases.. -- -- -- Reinsurance treaties -- benefits and loss related payments............ -- -- 318.1 Reinsurance treaties -- miscellaneous income.............. -- -- 100.0 Transfer of bonds to Separate Accounts... -- -- (8.3) Transfer of bonds from Separate Accounts............ -- -- 7.5 Transfer of bonds to Separate Accounts... -- -- (8.3) Transfer of bonds from Separate Accounts............ -- -- 7.5 Transfer of bonds to affiliates.......... -- -- (276.1) Transfer of bonds from affiliates..... -- -- (1.3) Transfer of bonds from affiliates..... -- -- 1.3

See accompanying notes to statutory financial statements. F-8 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (1)Corporate Structure, Basis of Presentation, and Summary of Significant Accounting Policies (a) Corporate Structure Genworth Life and Annuity Insurance Company (the "Company" or "GLAIC") is a stock life insurance company operating under a charter granted by the Commonwealth of Virginia on March 21, 1871. The Company is licensed as a life insurer to do business in Bermuda, the District of Columbia and all states except for New York. The Company is wholly-owned by Genworth Life Insurance Company ("GLIC"), which is wholly-owned by Genworth North America Corporation ("GNA"), which is indirectly wholly-owned by Genworth Financial, Inc. ("Genworth"). The following are the Company's direct subsidiaries with percentage of ownership listed as of December 31, 2018:

2018 ----- Jamestown Life Insurance Company ("JLIC").............. 100.0% River Lake Insurance Company VI ("RLIC VI")............ 100.0 River Lake Insurance Company VII ("RLIC VII").......... 100.0 River Lake Insurance Company VIII ("RLIC VIII")........ 100.0 River Lake Insurance Company IX ("RLIC IX")............ 100.0 River Lake Insurance Company X ("RLIC X").............. 100.0 Rivermont Life Insurance Company I ("Rivermont")....... 100.0 GNWLAAC Real Estate Holding, LLC ("GNWLAAC RE")........ 100.0 Newco Properties, Inc. ("Newco")....................... 100.0 Genworth Life Insurance Company of New York ("GLICNY"). 34.5

As of December 31, 2018, the Company also owns 100% of the common stock of Assigned Settlement Inc. ("ASI"), which is fully nonadmitted. The Company's direct subsidiaries previously included River Lake Insurance Company ("RLIC"), River Lake Insurance Company II ("RLIC II") and River Lake Insurance Company IV Limited ("RLIC IV"). RLIC and RLIC II were dissolved on April 11, 2016. RLIC IV was dissolved on December 1, 2016. On October 21, 2016, Genworth entered into an agreement and plan of merger (the "Merger Agreement") with Asia Pacific Global Capital Co., Ltd. ("Parent"), a limited liability company incorporated in the People's Republic of China and a subsidiary of China Oceanwide Holdings Group Co., Ltd., a limited liability company incorporated in the People's Republic of China (together with its affiliates, "China Oceanwide"), and Asia Pacific Global Capital USA Corporation ("Merger Sub"), a Delaware corporation and an indirect, wholly-owned subsidiary of Asia Pacific Insurance USA Holdings LLC ("Asia Pacific Insurance"), which is a Delaware limited liability company and owned by China Oceanwide, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub would merge with and into Genworth with Genworth surviving the merger as an indirect, wholly-owned subsidiary of Asia Pacific Insurance (the "Merger"). Genworth and China Oceanwide continue to work towards satisfying the closing conditions of the Merger as soon as possible. In December 2018 and January 2019, Genworth received the remaining approvals from its U.S. domestic insurance regulators. These approvals had multiple conditions, including but not limited to, the Merger being consummated without the purchase of the Company from GLIC by a Genworth intermediate holding company, which had been initially proposed and which Genworth refers to as the "GLAIC unstacking." Genworth's U.S. domestic regulatory approvals included the approval from the Delaware Department of Insurance (the "Delaware Department"). Genworth and China Oceanwide worked with the Delaware Department and other regulators to obtain approval of the Merger without the GLAIC unstacking throughout the second half of 2018. As part of the Delaware Department approval, Genworth and China Oceanwide agreed, following the Merger, Genworth Holdings, Inc. ("Genworth Holdings") will contribute $175.0 to GLIC, which was previously committed by Genworth to be used as partial consideration for the GLAIC unstacking. The $175.0 will be contributed in three equal F-9 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) tranches, with the first contribution completed by the end of March 2019, the second contribution completed by the end of September 2019 and the final contribution completed by the end of January 2020. In addition, at or before the closing of the Merger, the Company will purchase from GLIC an intercompany note with a principal amount of $200.0. This intercompany note was issued by Genworth Holdings to GLIC, with Genworth Holdings obligated to pay the principal amount on the maturity date of March 2020. The purchase price will be at fair value, but not less than $200.0. No changes will be made to the existing terms of the intercompany note, other than Genworth Holdings will now pay the Company the principal amount of the note at maturity. On March 14, 2019, Genworth, Parent and Merger Sub entered into a ninth waiver and agreement ("Ninth Waiver and Agreement") pursuant to which Genworth and Parent each agreed to waive until April 30, 2019 its right to terminate the Merger Agreement and abandon the Merger in accordance with the terms of the Merger Agreement. The Ninth Waiver and Agreement extended the eighth waiver and agreement extension deadline of March 15, 2019 to allow additional time for the remaining regulatory approval and clearance processes. Given closing of the transaction extended past March 31, 2019, timing of the initial tranche of the $175.0 post-closing capital commitment to GLIC from Genworth Holdings will need to be adjusted. (b) Nature of Business The Company is one of a number of subsidiaries of Genworth that provides insurance, investment and financial solutions. The Company's principal products are life insurance and fixed deferred and immediate annuities. Life insurance products provide protection against financial hardship after the death of an insured. Deferred annuities are investment vehicles intended for contractholders who want to accumulate tax-deferred assets for retirement, desire a tax-efficient source of income and seek to protect against outliving their assets. Immediate annuities provide a fixed amount of income for either a defined number of years, the annuitant's lifetime or the longer of a defined number of years or the annuitant's lifetime. In March 2016, Genworth suspended sales of traditional life insurance and fixed annuity products. This decision resulted in the suspension of the Company's offerings for traditional life insurance and fixed annuity products; however, the Company continues to service its existing retained and reinsured blocks of business. The Company also has non-strategic products which have not been actively sold since 2011, but it continues to service its existing blocks of business. The Company's non-strategic products include variable annuities, variable life insurance, group variable annuities offered through retirement plans and institutional products. Institutional products consist of funding agreements and previously included funding agreements backing notes ("FABNs"). Most of its variable annuities include guaranteed minimum death benefits ("GMDBs"). Some of the Company's group and individual variable annuity products include guaranteed minimum benefit features such as guaranteed minimum withdrawal benefits ("GMWBs") and certain types of guaranteed annuitization benefits. The Company previously distributed its products through an extensive network of independent brokerage general agencies throughout the United States and through financial intermediaries, insurance marketing organizations, independent broker/dealers, select banks and national brokerage and financial firms. (c) Basis of Presentation The accompanying statutory financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Virginia State Corporation Commission, Bureau of Insurance (the "Virginia Bureau"). These prescribed statutory accounting practices ("SAP") include a variety of publications of the National Association of Insurance Commissioners ("NAIC"), including Statements of Statutory Accounting Principles ("SSAP"), as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company has no permitted accounting practices that vary from prescribed accounting. However, certain of the Company's subsidiaries have such permitted practices granted by their respective state of domicile as described in Note 2(b). F-10 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The preparation of financial statements requires management to make informed judgments and estimates that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts may have been reclassified to conform to the current year presentation. (d) Differences Between SAP and U.S. GAAP The effects on the financial statements of the variances between SAP and U.S. generally accepted accounting principles ("U.S. GAAP"), although not reasonably determinable, are presumed to be material. The principal differences between SAP and U.S. GAAP include: . Investments in bonds and preferred stocks are generally carried at amortized cost under SAP. Under U.S. GAAP, investments in bonds and preferred stocks, other than those classified as held to maturity, are carried at fair value with changes recorded in accumulated other comprehensive income (loss) in the balance sheet if classified as available-for-sale securities or in the income statement if classified as trading securities. . The change in the unrealized gains or losses on certain investments is recorded as an increase or decrease in statutory surplus under SAP. Under U.S. GAAP, such unrealized gains and losses are recorded as a component of comprehensive income (loss). . Investments in subsidiaries are generally carried on a statutory equity basis with equity in the earnings of subsidiaries reflected in unassigned surplus. Under U.S. GAAP, controlled subsidiaries are consolidated and results of operations are included in net loss. . Under SAP, derivative instruments are valued consistently with hedged items. Derivatives are recorded at amortized cost if the hedged item is recorded at amortized cost. Derivatives are recorded at fair value and net income is adjusted for fair value changes, if the hedged item is also recorded at fair value. Derivative instruments that do not meet or no longer meet the criteria of a highly effective hedge ("non-qualifying derivatives") are recorded at fair value and the changes in fair value are recorded as unrealized gains and losses in statutory surplus. Under U.S. GAAP, derivatives are recorded at fair value and changes in fair value are recorded in accumulated other comprehensive income (loss) for qualified cash flow hedges or net income (loss) (with an offsetting change in value for changes in the hedged item) for qualified fair value hedges and non-qualifying derivatives. To the extent that hedging relationships are highly effective, the derivatives' impact on operations is limited to payments and receipts of periodic coupons. . Under SAP, embedded derivatives are carried consistently with the host instruments. Under U.S. GAAP, the embedded derivatives that are not clearly and closely related to the host are bifurcated and accounted for like any other free-standing derivative. . Interest Maintenance Reserve ("IMR") represents the deferral of interest related realized gains and losses, net of tax, on primarily fixed maturity investments and interest rate derivatives which are amortized into operations over the remaining life of the investment sold under SAP. No such reserve is required under U.S. GAAP. . Asset Valuation Reserve ("AVR") represents a contingency reserve for credit related risk on most invested assets of the Company, and is charged to statutory surplus under SAP. No such reserve is required under U.S. GAAP, but mortgage loans are recorded net of allowances for estimated uncollectible amounts. . Certain assets, principally furniture, equipment, prepaid expenses, agents' balances, and certain deferred tax assets have been designated as nonadmitted assets and excluded from assets by a charge to statutory surplus under SAP. Under U.S. GAAP, such amounts are carried with an appropriate valuation allowance, when necessary. . Intangible assets such as present value of future profits and other adjustments, resulting from the Company's acquisitions, are not recorded under SAP. Intangible assets such as goodwill are recorded under SAP and amortized. Under U.S. GAAP, the present value of future profits is recorded and amortized and goodwill is recorded at cost and tested for impairment using a fair value methodology at least annually. F-11 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) . Under SAP, a provision is established for unsecured reinsurance recoverable balances from unauthorized reinsurers. The change in this provision is credited or charged to unassigned statutory surplus. Under U.S. GAAP, a provision is established for uncollectible reinsurance balances with any changes to this provision reflected in operations for the period. . Under SAP, aggregate reserves for a majority of life insurance and fixed annuity products are based on statutory mortality and interest requirements without consideration for anticipated withdrawals. Variable annuity contracts are reserved for using a prescribed principles-based approach. Reserves for long-term care insurance ("LTC") are based on morbidity assumptions derived from the Company's experience. Under U.S. GAAP, reserves for term life insurance, life-contingent annuity, and LTC products are based on the present value of future benefits less the present value of future net premiums based on mortality, morbidity and other assumptions, which were appropriate at the time the policies were issued or acquired. Reserves for universal life insurance, term universal life insurance and non life-contingent annuity products are recognized by establishing a liability equal to the current account value of the policyholders' contracts, with an additional reserve for certain guaranteed benefits. . Reserves are reported net of ceded reinsurance under SAP. Under U.S. GAAP, reserves relating to business in which the ceding company is not legally relieved of its liability are reported gross with an offsetting reinsurance receivable. . Under SAP, certain annuity contracts which do not pass through all investment gains to the contractholders are maintained in the separate accounts, whereas U.S. GAAP reports these contracts in the general account of the Company. . Policy acquisition costs are expensed as incurred under SAP. Under U.S. GAAP, costs that are related to the successful acquisition of new and renewal insurance policies and investment contracts are deferred and recognized over either the expected premium paying period or the expected gross profits. . Under SAP, the cumulative effect of changes in accounting principles are recorded as increases or decreases in statutory surplus. Under U.S. GAAP, cumulative effects of changes in accounting principles generally affect equity and net loss. . Under SAP, premiums of universal life insurance and deferred annuity contracts including policy charges are recorded as revenue when received. Under U.S. GAAP, policy charges are recorded as revenue when due, and the premiums are recorded as policyholder account balances. . Under SAP, Federal income taxes are provided for in the Company's estimated current and deferred tax liability. Income taxes incurred include current year estimates of Federal income taxes due or refundable, based on tax returns for the current year and all prior years to the extent not previously provided. Deferred taxes are provided for differences between the financial statement basis and the tax basis of assets and liabilities. Changes in deferred tax assets ("DTA") and deferred tax liabilities ("DTL") are recognized as a separate component of gains and losses in statutory unassigned surplus, while under U.S. GAAP, these changes are included in income tax expense or benefit. Under U.S. GAAP and SAP, gross DTAs are reduced by a valuation allowance if it is more likely than not that some portion or all of the assets will not be realized. The remaining adjusted gross DTA not meeting certain criteria outlined in SSAP No. 101, Income Taxes, are not admitted for SAP. . The Statutory Statements of Cash Flow differs in certain respects from the presentation required by U.S. GAAP, including the presentation of the changes in cash, cash equivalents and short-term investments instead of cash and cash equivalents. Short-term investments include securities with maturities of one year or less at the time of acquisition. For statutory purposes, there is no reconciliation between net loss and cash from operations. . SAP does not require the presentation of a Statement of Comprehensive Income; however, U.S. GAAP does require a Statement of Comprehensive Income. F-12 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (e) Recognition of Revenue and Related Expenses Scheduled life and accident and health insurance premiums and annuity considerations are recognized as revenue when due. Premiums and fund deposits for universal life insurance and single premium contracts are recognized as revenue when collected. Benefits, surrenders and withdrawals are expensed as incurred. All acquisition costs and maintenance expenses are charged to operations as incurred. (f) Investments Investments in bonds are generally stated at amortized cost except for bonds where the NAIC designation has fallen to six and the fair value has fallen below amortized cost, in which case they are carried at fair value. Amortization of mortgage-backed and asset-backed bonds is based on anticipated prepayments at the date of purchase with significant changes in estimated cash flows from original purchase assumptions recognized using a retrospective method. In applying the retrospective adjustment method, the Company elected to use the book value as of January 1, 1994 as the cost for securities purchased prior to January 1, 1994 where historical cash flows are not readily available. Amortization is accounted for using a method that approximates the scientific interest method. Prepayment assumptions for mortgage-backed and asset-backed bonds are based on internal estimates. There were no nonadmitted amounts related to bond holdings as of December 31, 2018 and 2017. Investments in common stocks of unaffiliated companies are carried at fair value. Investments in common stocks of subsidiary controlled and affiliated ("SCA") insurance companies are carried at the Company's proportionate share of the audited statutory capital and surplus of the entity. Noninsurance SCAs are carried at the U.S. GAAP equity of the investee, adjusted for unamortized goodwill. Changes in the proportionate share of equity of such subsidiaries are recorded as unrealized gains and losses. Dividends from subsidiaries are recorded as net investment income when paid. Investments in preferred stocks are carried at cost, except where the NAIC designation is four or below and the fair value has fallen below amortized cost, in which case it is carried at fair value. Investments in short-term investments (maturity dates of one year or less from the acquisition date) are stated at amortized cost, which approximates fair value due to their short-term maturity. Money market funds are stated at fair value and classified as cash equivalents. See Note 1(u). The Company regularly evaluates securities, excluding loan-backed and structured securities, in an unrealized loss position for other-than-temporary impairments ("OTTI"). For these securities, the Company considers all available information relevant to the collectability of the securities, including information about past events, current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. When it is determined that an impairment is other than temporary because the Company has made a decision to sell the security at an amount below its carrying value, or it is probable that the Company will not collect all amounts due based on the contractual terms of the security, the Company will recognize that an OTTI has occurred and record a realized loss equal to the difference between the security's carrying value and its fair value. For loan-backed and structured securities, the Company also utilizes performance indicators of the underlying assets including defaults or delinquency rates, loan to collateral value ratios, third-party credit enhancements, current levels of subordination, collateral vintage and other relevant characteristics of the underlying assets or the security to develop its estimate of cash flows. Estimating the expected cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. Where possible, this data is benchmarked against third-party sources. When it is determined that an impairment is other than temporary because it is probable that the Company will not collect all amounts due based on the contractual terms of the security, even if the Company has no intent to sell and has the intent and ability to hold to recovery, the Company will recognize a realized loss equal to the difference between the carrying value of the F-13 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) security and the present value of the expected cash flows. Under circumstances whereby the Company has the intent to sell or does not have the ability and intent to hold to recovery, the security is impaired to its fair value. In addition, for certain asset-backed securities in an unrealized loss position, management also evaluates whether it has the intent and ability to retain the investment for a period of time sufficient to recover the amortized cost basis. Investments in real estate are stated at depreciated cost. As of December 31, 2018 and 2017, the Company's investment in real estate consisted of properties occupied by the Company of $12.1 and $10.8, respectively. On October 16, 2018, the Company sold land located in Lynchburg, Virginia to the City of Lynchburg for a purchase price of $0.2. As a result of the sale, the Company recorded a de minimis gain. Newco, a noninsurance subsidiary, owns certain properties occupied by the Company and its affiliates. Mortgage loans are stated at principal amounts outstanding, net of premium and discount amortization. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Premiums and discounts are amortized as level yield adjustments over the respective loan terms. GNWLAAC RE, a noninsurance subsidiary, owns certain mortgage loans contributed by the Company. The transfers are recorded at the lower of book value or fair value at the date of transfer. Impaired loans are defined by SSAP No. 37, Mortgage Loans, as loans for which it is probable that the Company will be unable to collect all amounts due according to original contractual terms of the loan agreement. In determining whether it is probable that the Company will be unable to collect all amounts due, the Company considers current payment status, debt service coverage ratios, occupancy levels and current loan-to-value. For individually impaired loans, the Company records an impairment charge when it is probable that a loss has occurred. Impaired loans are carried on a non-accrual status. Loans are placed on non-accrual status when, in management's opinion, the collection of principal or interest is unlikely, or when the collection of principal or interest is 90 days or more past due. Income on impaired loans is not recognized until the loan is sold or the cash received exceeds the carrying amount recorded. Investments in joint ventures, partnerships or limited liability companies are stated based on the underlying audited U.S. GAAP equity adjusted for any unamortized goodwill. Changes in the proportionate share of these investments are recorded as unrealized gains and losses. The cost basis and carrying value of joint ventures and limited partnership investments are adjusted for impairments in value deemed to be other than temporary, with associated realized loss reported in net income (loss). Realized investment gains and losses, determined on a specific identification basis and recorded on the trade date, are reduced by amounts transferred to IMR and are reflected as an element of net income (loss), net of related tax. For bonds and preferred stocks carried at fair value, the difference between amortized cost and fair value is reflected as unrealized gains and losses on investments in unassigned surplus. Changes in fair values of common stocks and changes in statutory equity of subsidiaries are reflected as unrealized gains and losses on investments in unassigned surplus. The Company participates in a program managed by an unaffiliated financial institution in which it lends securities to brokers or other parties. The Company receives collateral for the loaned securities which can consist of cash or government securities, on a daily basis, in amounts equal to or exceeding 102% of the fair value of the applicable securities loaned. Currently, the Company only accepts cash collateral from borrowers under the program. The collateral is re-invested in bonds and short-term investments, which are carried at amortized cost. Sales of securities to affiliates are considered economic transactions and are accounted for at fair value, with interest related gains and losses transferred to IMR. F-14 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (g) Fair Value Measurements The Company holds certain long-term bonds, common stocks, derivatives, securities held as collateral, and separate account assets which are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect a view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets carried or disclosed at fair value are classified and disclosed in one of the following three categories: . Level 1 -- Quoted prices for identical instruments in active markets. . Level 2 -- Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. . Level 3 -- Instruments whose significant value drivers are unobservable. Level 1 primarily consists of separate account assets and financial instruments whose value is based on quoted market prices such as actively traded equity securities and actively traded mutual fund investments. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. These models are primarily industry-standard models that consider various inputs, such as interest rate, credit spread and foreign exchange rates for the underlying financial instruments. All significant inputs are observable, or derived from observable information, in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate bonds; government or agency securities; certain mortgage-backed and asset-backed securities; securities held as collateral; and certain non-exchange-traded derivatives such as interest rate swaps. Level 3 is comprised of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on, nor corroborated by, readily available market information. In limited instances, this category may also utilize non-binding broker quotes. This category primarily consists of certain less liquid bonds and preferred stocks, and certain derivative instruments where the Company cannot corroborate the significant valuation inputs with market observable data. As of each reporting period, all assets and liabilities recorded or disclosed at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability, such as the relative impact on the fair value from including a particular input. The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. The valuation of interest rate swaps is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2. For single name credit default swaps, an income approach is used to determine fair value based on using current market information for the credit spreads of the reference entity, which is considered observable inputs based on the reference entities of derivatives and results in these derivatives being classified as Level 2. F-15 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The valuation of equity index options is determined using an income approach. The primary inputs into the valuation are forward interest rate volatility and a time value component associated with the optionality in the derivative, which are considered significant unobservable inputs in most instances. The equity index volatility surface is determined based on market information that is not readily observable and is developed based upon inputs received from several third-party sources. Accordingly, these options are classified as Level 3. The valuation of cross currency swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and foreign currency exchange rates, both of which are considered an observable input, and results in the derivative being classified as Level 2. The valuation of equity return swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and underlying equity index values, which are generally considered observable inputs, and results in the derivative being classified as Level 2. The fair value of the majority of separate account assets is based on the quoted price of the underlying fund investments and, therefore, represents Level 1 pricing. The remaining separate account assets represent Level 2 and 3 pricing, as defined above. (h) Investment Income Due and Accrued Accrued investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and dividends are recorded as earned on the ex-dividend date. Due and accrued income is not recorded on: (a) bonds in default and (b) bonds delinquent more than 90 days or where collection of interest is improbable. As of December 31, 2018 and 2017, the Company's nonadmitted investment income due and accrued was zero. (i) Nonadmitted Assets Certain assets, principally furniture, equipment, agents' debit balances, certain amounts related to investments in or near default, prepaid expenses, and certain deferred income tax assets have been designated as nonadmitted assets and are excluded from assets by a charge to statutory surplus. Changes in these nonadmitted assets are presented as changes in unassigned surplus. (j) Aggregate Reserves and Liability for Deposit-Type Contracts Policy reserves on annuity and supplementary contracts are calculated using the Commissioners' Annuity Reserve Valuation Method, except variable annuities which use the Commissioners' Annuity Reserve Valuation Method for Variable Annuities. The valuation interest assumptions follow the Standard Valuation Law and vary by the contracts' characteristics and their issue year. Policy reserves on life insurance contracts are based on statutory mortality and valuation interest rates using the Commissioner's Reserve Valuation Method without consideration of withdrawals. The valuation interest and mortality assumptions follow the Standard Valuation Law and vary by the contracts' characteristics and their issue year. Valuation methods provide, in the aggregate, reserves that are greater than or equal to the minimum guaranteed policy cash values or the amount required by law. Accident and health benefit reserves are developed by actuarial methods and are determined based on published tables using specified statutory interest rates and mortality. Morbidity assumptions are based on Company experience. F-16 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Liability for deposit-type contracts represents contracts without significant mortality or morbidity risk. Payments received from sales of deposit-type contracts are recognized by providing a liability equal to the current value of the policyholders' contracts. Interest rates credited to these contracts are based on the applicable terms of the respective contract. (k) Liability for Policy and Contract Claims The liability for policy and contract claims represents the amount needed to provide for the estimated cost of settling due and unpaid claims relating to insured events that have occurred on or before the end of the respective reporting period. The estimated liability includes requirements for payments of claims that have been reported to the insurer, and claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated. Management considers the liability for policy and contract claims provided to be satisfactory to cover the losses that have occurred. Management monitors actual experience, and where circumstances warrant, will revise its assumptions. The methods of determining such estimates and establishing the liability are reviewed continuously and any adjustments are reflected in operations in the period in which they become known. Future developments may result in losses greater or less than the liability for policy and contract claims provided. (l) Interest Maintenance Reserve IMR represents the deferral of interest-related realized capital gains and losses, net of tax, on primarily fixed maturity investments and interest rate derivatives. These gains and losses are amortized into loss on a level yield method, based on statutory factor tables over the estimated remaining life of the investment sold or called. (m) Asset Valuation Reserve AVR is a contingency reserve for credit-related losses on most investments and is recorded as a liability through a charge to statutory surplus. The reserve is calculated based on credit quality using factors provided by the NAIC. (n) Federal Income Taxes The Company determines DTAs and/or DTLs by multiplying the differences between the statutory financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled if there is no change in law. The effect on deferred taxes of a change in tax rates is recognized in unassigned funds (surplus) in the period that includes the enactment date. Valuation allowances on DTAs are estimated based on the Company's assessment of the realizability of such amounts. (o) Reinsurance Premiums, commissions, expense reimbursement, claim, and claim adjustment expenses related to reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and with the terms of the reinsurance contracts and are reported net of amounts ceded to other companies. A liability has been provided for unsecured policy reserves on reinsurance ceded to companies not authorized to assume business in the state of domicile and is included in funds held under reinsurance treaties with unauthorized companies. Changes in this liability are reported directly in unassigned surplus. Policy and contract liabilities ceded have been reported as reductions to the related reserves. F-17 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (p) Guaranty Association Assessments The Company is required by law to participate in the guaranty associations of the various states in which it is licensed to do business. The state guaranty associations ensure payment of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies involved in similar lines of business. See Note 7(b). (q) Electronic Data Processing ("EDP") Equipment and Software EDP equipment and operating software are admitted assets to the extent they do not exceed 3% of capital and surplus (as adjusted for certain fixed assets and intangible assets) and are depreciated over three years on a straight line basis. As of December 31, 2018 and 2017, EDP equipment and operating software and non-operating software totaled $10.0 and $11.4, respectively. For the years ended December 31, 2018, 2017 and 2016 total depreciation expense for EDP equipment and operating software and non-operating software was $5.7, $8.0, and $10.4, respectively. Of these amounts, $0.3, $0.2 and $0.4 were related to EDP equipment and operating software as of December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018 and 2017, total accumulated depreciation totaled $123.1 and $118.8, respectively, inclusive of $0.5 in each year related to EDP equipment and operating software. (r) Derivative Instruments Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are valued and reported consistently with the hedged items. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge shall be valued at fair value with the changes in fair value recorded as unrealized gains and losses in statutory surplus. The Company uses interest rate swaps, equity index options, equity return swaps, credit default swaps and financial futures for hedging. Interest rate swaps and interest rate futures are used to reduce market risks from changes in interest rates and to alter interest rate exposures arising from mismatches between assets and liabilities. Under interest rate swaps, the Company agrees with other parties to exchange at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. Equity index options, equity futures, and equity return swaps are used to hedge the equity market risks that are part of some of the Company's annuity liabilities. The Company sells protection under single name credit default swaps in combination with purchasing other investments to reproduce investment characteristics of similar investments based on the credit quality and term of the credit default swap. The Company uses cross currency swaps to reduce market risks from changes in foreign currency rates and to alter interest rate exposure arising from mismatches between assets and liabilities. In a cross currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a forward exchange rate calculated by reference to an agreed upon principal amount. The principal amount of each currency is exchanged at the inception and termination of the currency swap by each party. Interest rate swaps that qualify for hedge accounting and certain credit default swaps used in replication transactions are carried at amortized cost while non-qualifying interest rate swaps, and credit default swaps are carried at fair value with changes in fair value recorded in statutory surplus. Realized investment gains and losses from derivatives that qualify for hedge accounting are reduced by amounts transferred to IMR and are reflected as an element of investment income, net of investment and interest expenses. Any fees associated with swaps are held in surplus and the full fee amount will be recognized in income at the time of termination. (s) Experience Refunds Experience refunds are calculated in accordance with the applicable reinsurance agreements. Experience refunds are primarily determined by claims experience on the ceded blocks, in addition to numerous factors that include profitability of the Company during the period covered by the refund and capitalization levels of the Company. F-18 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (t) Going Concern As of December 31, 2018, the Company's management does not have any doubts about the Company's ability to continue as a going concern. (u) Accounting Changes In February 2018, the NAIC's Statutory Accounting Principles Working Group ("SAPWG") issued guidance on accounting for the Tax Cuts and Jobs Act ("TCJA") regarding a limited scope exception to SSAP No. 9, Subsequent Events. In this guidance, the SAPWG adopted many of the provisions issued by the U.S. Securities Exchange Commission in Staff Accounting Bulletin 118 with regard to estimates under the TCJA. For items under the TCJA that are complete, the Company reflected the income tax effects in its 2017 statutory financial statements. Reasonable estimates updated and/or established after the issuance of the 2017 statutory financial statements but before the issuance of the year end 2017 audited statutory financial statements, were not recognized as Type I subsequent events. Instead, these changes, as well as future changes in estimates shall be recognized as a change in accounting estimate, pursuant to SSAP No. 3, Accounting Changes and Corrections of Errors, when the information necessary to update the estimate becomes available. In May 2018, the NAIC adopted revisions to SSAP No. 101 which were effective upon adoption. See Note 6 for additional discussion. In November 2017, the NAIC adopted substantive revisions to SSAP No. 100R, Fair Value, which were effective on January 1, 2018 and applied on a prospective basis. These revisions allow the use of net asset value ("NAV") per share as a practical expedient for fair value and added disclosures to identify assets valued using NAV. These revisions did not have an impact on the Company's financial statements; however, additional disclosures were included in Note 13. In August 2017, the NAIC adopted modifications to SSAP No. 1, Accounting Policies, Risks & Uncertainties, and Other Disclosures, which were effective upon adoption and applied on a prospective basis. These modifications clarify that cash equivalents and short-term investments are reported in the restricted asset disclosures. These modifications did not have an impact on the Company's financial statements or disclosures. In April 2017, the NAIC adopted modifications to SSAP No. 30, Unaffiliated Common Stock, SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, and SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities as they relate to ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which were effective on January 1, 2017 and applied on a prospective basis. These modifications included the definition of control and provided guidance as to when an investment qualified (or no longer qualifies) for the equity method of accounting. These modifications further specified that when the level of investment in a SCA entity fell below the level of control, defined as the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the investee in SSAP No. 97, the reporting entity should discontinue the use of the equity method of accounting. When an entity becomes qualified to use the equity method of accounting, the entity should add the cost of acquiring the additional interest in the investee to the current basis of the previously held interest and apply the equity method of accounting, prospectively. The Company has adopted these modifications, which did not have an impact on the Company's financial statements. In June 2017, the NAIC adopted modifications to SSAP No. 37, which were effective upon adoption and applied on a prospective basis. These modifications clarify that a reporting entity providing a mortgage loan as a "participant in a mortgage loan agreement," should consider the mortgage loan in the scope of SSAP No. 37. Specifically, in addition to mortgage loans directly originated, a mortgage loan also includes mortgages acquired through assignment, syndication or participation. These modifications also clarify the impairment assessment and incorporate new disclosures for these types of mortgage loans to identify mortgage loans in which the insurer is a participant or co-lender. These modifications did not have an impact on the Company's financial statements; however, additional disclosures were included in Note 2(c). In March 2017, the NAIC adopted revisions to SSAP No. 35R, Guaranty Fund and Other Assessments, which were effective on January 1, 2017 and applied on a prospective basis. The revisions allow for the discounting of liabilities for F-19 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) guaranty funds and the related assets recognized from accrued and paid liability assessments from insolvencies of entities that wrote LTC contracts and required new disclosures. These revisions did not have an impact on the Company's financial statements; however, additional disclosures were included in Note 7. In December 2016, the NAIC adopted substantive revisions to SSAP No. 2R, Cash, Cash Equivalents, Drafts and Short-Term Investments, which were effective on December 31, 2017 and applied on a prospective basis. These revisions reclassified money market mutual funds from short-term investments to cash equivalents and required that money market mutual funds be valued at fair value or net asset value as a practical expedient. These revisions did not have a significant impact on the Company's capital and surplus, with the only impact being the exclusion of money market mutual funds from the calculation of AVR under the revised guidance. In November 2016, the NAIC adopted modifications to SSAP No. 56, Separate Accounts, which were effective on December 31, 2017 and applied on a prospective basis. These revisions removed disclosures related to total maximum guarantees. These modifications did not have an impact on the Company's financial statements; however, disclosures were removed from Note 10. In June 2016, the NAIC adopted SSAP No. 103R, Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, which were effective on January 1, 2017 and applied on a prospective basis. These modifications added accounting guidance for short sales and required new disclosures about short sale transactions. This adoption did not have an impact on the Company's financial statements. In August 2016, the NAIC adopted substantive revisions to SSAP No. 51R, Life Contracts, to incorporate references to the Valuation Manual and to facilitate the implementation of Principle-Based Reserves, which were effective on January 1, 2017. For life insurance policies issued during 2017 through 2019, the first three years following the operative date of the Valuation Manual, the Valuation Manual allows companies to continue using the current reserve methodologies. The Company elected the three-year phased in approach with the first year of impact in the financial statements for the year ending December 31, 2020; therefore, there was no impact on the Company's financial statements in 2017 or 2018. In June 2016, the NAIC adopted modifications to SSAP No. 26R, Bonds, and SSAP No. 43R, Loan-backed and Structured Securities, which were effective on January 1, 2017 and applied on a prospective basis. These modifications clarified that the amount of prepayment penalties or acceleration fees reported as investment income should equal the total proceeds received less the par value of the investment; and any difference between the carrying value and the par value at the time of disposal should be reported as realized capital gains and losses. These modifications also added specific disclosures related to securities sold, redeemed or otherwise disposed of as a result of a callable feature. These modifications did not have a significant impact on the Company's financial statements; however, additional disclosures were included in Note 2(e). In April 2016, the NAIC adopted substantive revisions to SSAP No. 41R, Surplus Notes, which were effective on January 1, 2017 and applied on a prospective basis. These revisions required that the surplus notes with a designation equivalent to NAIC 1 or NAIC 2 be reported at amortized cost and all other surplus notes be reported at the lesser of amortized cost or fair value. The revisions also incorporated guidance to clarify when surplus notes shall be nonadmitted, have an unrealized loss, and undergo an OTTI assessment. These revisions did not have an impact on the Company's financial statements. (v) Correction of Error During 2017, the Company recorded a prior period correction related to Actuarial Guideline 38 ("AG38") part 8D reserves for lapse assumptions on certain of its universal life insurance products with secondary guarantees. To record this correction, the Company increased the aggregate reserves for life contracts by $17.2 and net deferred tax assets by $6.0, with an offsetting decrease of $11.2 to unassigned surplus as of January 1, 2017, in accordance with SSAP No. 3. F-20 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (2)Investments (a) Bonds and Preferred and Common Stocks As of December 31, 2018 and 2017, the carrying value, gross unrealized gains and losses, and fair value of the Company's bonds and preferred and common stocks, excluding stocks of affiliates, were as follows:

2018 ------------------------------------------------------- Gross Gross unrealized gains unrealized losses ---------------- ---------------- Carrying Not Not value OTTI OTTI OTTI OTTI Fair value --------- ------ ---- ------- ----- ---------- Bonds: U.S. government and U.S. government agencies............ $ 611.0 $ 84.3 $ -- $ (6.7) $ -- $ 688.6 All other governments. 118.9 8.4 -- (1.7) -- 125.6 States, territories, and possessions..... 153.5 15.5 -- (0.2) -- 168.8 Special revenue and special assessment obligations......... 361.7 39.3 -- (1.0) -- 400.0 Industrial and miscellaneous....... 7,800.8 284.9 -- (247.8) -- 7,837.9 Residential mortgage-backed..... 847.9 56.5 0.5 (6.5) -- 898.4 Commercial mortgage-backed..... 820.8 8.8 -- (18.7) -- 810.9 Other asset-backed structured securities.......... 538.5 2.8 -- (4.6) -- 536.7 Hybrids............... 75.9 0.8 -- (3.3) (0.9) 72.5 --------- ------ ---- ------- ----- --------- Total bonds....... 11,329.0 501.3 0.5 (290.5) (0.9) 11,539.4 Preferred and common stocks -- nonaffiliates 70.5 0.6 -- (2.2) -- 68.9 --------- ------ ---- ------- ----- --------- Total bonds and preferred and common stocks....... $11,399.5 $501.9 $0.5 $(292.7) $(0.9) $11,608.3 ========= ====== ==== ======= ===== ========= 2017 ------------------------------------------------------- Gross Gross unrealized gains unrealized losses ---------------- ---------------- Carrying Not Not value OTTI OTTI OTTI OTTI Fair value --------- ------ ---- ------- ----- ---------- Bonds: U.S. government and U.S. government agencies............ $ 715.0 $117.8 $ -- $ (0.9) $ -- $ 831.9 All other governments. 144.7 18.4 -- (0.5) -- 162.6 States, territories, and possessions..... 185.3 23.7 -- (0.2) -- 208.8 Special revenue and special assessment obligations......... 383.0 52.7 -- (0.2) -- 435.5 Industrial and miscellaneous....... 7,264.2 647.2 -- (23.0) -- 7,888.4 Residential mortgage-backed..... 1,093.7 76.9 1.0 (2.7) -- 1,168.9 Commercial mortgage-backed..... 927.5 23.7 0.7 (8.1) -- 943.8 Other asset-backed structured securities.......... 469.9 3.4 -- (0.9) -- 472.4 Hybrids............... 94.9 9.4 1.1 (0.9) -- 104.5 --------- ------ ---- ------- ----- --------- Total bonds....... 11,278.2 973.2 2.8 (37.4) -- 12,216.8 Preferred and common stocks -- nonaffiliates 62.6 2.6 -- -- -- 65.2 --------- ------ ---- ------- ----- --------- Total bonds and preferred and common stocks....... $11,340.8 $975.8 $2.8 $ (37.4) $ -- $12,282.0 ========= ====== ==== ======= ===== =========

Gross unrealized losses in the tables above include declines in the fair value of certain bonds below carrying value, where an OTTI has not occurred as the Company does not intend to sell, has the intent and ability to retain the investment for a period of time sufficient to recover the entire amortized cost basis of the investment and otherwise expects to recover the entire amortized cost basis of the investment. In addition, gross unrealized losses include declines in the fair value below the F-21 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) carrying value for certain bonds that have been other-than-temporarily impaired and were written down to their discounted estimated future cash flows, which were greater than their fair value, as the Company does not expect to recover the entire amortized cost basis of these bonds based on its estimate of future cash flows to be collected, despite not having the intent to sell and having the intent and ability to retain the investment for a period of time sufficient to recover the amortized cost basis. Furthermore, there were no significant unrealized losses on bonds with a NAIC designation of six where carrying value equals fair value as of December 31, 2018 and 2017. As of December 31, 2018, the scheduled contractual maturity distribution of the bond portfolio was as follows:

2018 ------------------------- Carrying value Fair value -------------- ---------- Due in one year or less.................. $ 182.7 $ 183.8 Due after one year through five years.... 1,516.2 1,535.6 Due after five years through ten years... 2,052.8 2,042.9 Due after ten years...................... 5,370.1 5,531.1 --------- --------- Subtotals............................. 9,121.8 9,293.4 Residential mortgage-backed.............. 847.9 898.4 Commercial mortgage-backed............... 820.8 810.9 Other asset-backed structured securities. 538.5 536.7 --------- --------- Totals................................ $11,329.0 $11,539.4 ========= =========

Actual and expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As required by law, the Company has investments on deposit with governmental authorities and banks for the protection of policyholders with a statement value of $7.7 as of December 31, 2018 and 2017. As of December 31, 2018 and 2017, approximately 68.9% and 64.4%, respectively, of the Company's long-term bond portfolio was composed of security issues in the industrial and miscellaneous category. The vast majority of which are rated investment grade and are senior secured bonds. The Company's portfolio is widely diversified among various geographic regions in the United States, and is not dependent on the economic stability of one particular region. As of December 31, 2018 and 2017, the Company did not hold any investments in any single issuer, other than securities issued or guaranteed by the U.S. government or money market securities, which exceeded 10% of capital and surplus. The credit quality mix of the bond portfolio as of December 31, 2018 and 2017 was as follows. The quality ratings represent NAIC designations.

2018 2017 ---------------- ---------------- Carrying Carrying value Percent value Percent --------- ------- --------- ------- Class 1 -- highest quality.... $ 6,043.3 53.3% $ 6,696.4 59.4% Class 2 -- high quality....... 4,816.3 42.5 4,068.4 36.1 Class 3 -- medium quality..... 428.2 3.8 463.1 4.1 Class 4 -- low quality........ 40.0 0.4 49.1 0.4 Class 5 -- lower quality...... 1.0 -- 1.0 -- Class 6 -- in or near default. 0.2 -- 0.2 -- --------- ----- --------- ----- Totals..................... $11,329.0 100.0% $11,278.2 100.0% ========= ===== ========= =====

F-22 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Bonds with ratings categories ranging from AAA/Aaa to BBB/Baa, as assigned by a rating service such as Standard & Poor's Financial Services LLC ("S&P") or Moody's Investors Service, Inc. ("Moody's"), are generally regarded as investment grade securities. Some agencies and treasuries (that is, those securities issued by the U.S. government or an agency thereof) are not rated, but all are considered to be investment grade securities. The NAIC regards agencies and treasuries and all A ratings as Class 1 (highest quality), BBB/Baa ratings as Class 2 (high quality), BB/Ba ratings as Class 3 (medium quality), B ratings as Class 4 (low quality), CCC/Caa ratings as Class 5 (lower quality), and CC/Ca or below ratings as Class 6 (in or near default). There were no bonds in default as of December 31, 2018 and 2017. (b) Common Stocks of Affiliates The Company's investment in common stocks of affiliates as of December 31, 2018 and 2017 included its proportionate ownership percentage as disclosed in Note 1(a), except as disclosed below. The following tables summarize data from the statutory financial statements of the Company's insurance company subsidiaries as of and for the years ended December 31, 2018, 2017 and 2016:

GLICNY JLIC Rivermont RLIC VI RLIC VII RLIC VIII RLIC IX RLIC X -------- -------- --------- ------- -------- --------- ------- ------ 2018 Total admitted assets.... $7,664.4 $128.3 $606.8 $ 270.0 $156.7 $333.6 $255.7 $246.6 Total liabilities........ 7,430.6 67.7 486.5 252.6 141.7 302.9 241.7 227.3 Total capital and surplus 233.8 60.6 120.3 17.4 15.0 30.7 14.0 19.3 Net income (loss)........ (56.0) 4.9 (1.3) 547.9 (0.7) (2.8) 528.8 447.8 2017 Total admitted assets.... $7,985.9 $128.7 $594.3 $ 863.9 $169.4 $321.8 $822.9 $703.0 Total liabilities........ 7,697.5 68.8 471.7 831.8 151.7 290.2 809.0 676.1 Total capital and surplus 288.4 59.9 122.6 32.1 17.7 31.6 13.9 26.9 Net income (loss)........ (168.1) (0.6) (8.1) (10.1) 13.8 8.0 4.6 (44.1) 2016 Total admitted assets.... $8,495.5 $125.5 $569.4 $ 856.6 $184.9 $309.6 $832.8 $617.5 Total liabilities........ 8,014.3 65.0 440.7 810.8 177.2 280.0 811.5 576.5 Total capital and surplus 481.2 60.5 128.7 45.8 7.7 29.6 21.3 41.0 Net income (loss)........ (19.9) 25.1 (12.2) (182.2) (56.6) (91.7) 3.3 (63.7) RLIC* RLIC II* RLIC IV** -------- -------- --------- 2016 Total admitted assets.... $ -- $ -- $ -- Total liabilities........ -- -- -- Total capital and surplus -- -- -- Net income (loss)........ 983.1 790.6 55.4

-------- * Net income prior to dissolution on April 11, 2016. ** Net income prior to dissolution on December 1, 2016. As of December 31, 2018 and 2017, the Company's investment in Rivermont was zero as the entity had an unassigned deficit (excluding surplus notes outstanding). Rivermont has no permitted practices. See Note 8 for additional information. F-23 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) RLIC VII and RLIC VIII were granted a permitted practice from the Vermont Department of Financial Regulation (the "Vermont Department") to carry their reserves on a U.S. GAAP basis, pursuant to section 6048K(a)(2) of the Vermont Insurance Code. In addition, the difference between reserves under NAIC SAP and the permitted practice reserves held by RLIC VII and RLIC VIII flows through special surplus funds, rather than through RLIC VII and RL VIII's unassigned deficit. As of December 31, 2018 and 2017, the Company carried its investments in RLIC VII and RLIC VIII at zero as these entities had an unassigned deficit, excluding the special surplus funds. Effective June 1, 2018, RLIC VI was granted a permitted practice by the Delaware Department pursuant to carry its reserves on a U.S. GAAP basis, pursuant to Title 18, Section 6907 and 6962 of the Delaware Insurance Code. In addition, the difference between reserves under NAIC SAP and the permitted practice reserve held by RLIC VI will flow through special surplus funds, rather than through RLIC VI's unassigned deficit. Prior to June 1, 2018, RLIC VI had been granted a permitted practice to record an excess of loss ("XOL") reinsurance agreement with The Canada Life Assurance Company ("Canada Life") and the Company as a gross admitted asset (the "RLIC VI XOL Coverage Amount") and as paid in surplus thereby including such amounts in RLIC VI's statutory surplus. The RLIC VI XOL Coverage Amount was equal to the lesser of the excess of total reserves under NAIC SAP less the qualified reserves (an amount agreed upon by the Company, the Virginia Bureau and the Delaware Department), or $600.0 minus the balance of any unreimbursed payments previously made by Canada Life under this XOL reinsurance agreement. RLIC VI was not permitted to record any deferred tax amounts that might otherwise have been required by SSAP No. 101 related to the RLIC VI XOL Coverage Amount. Effective June 1, 2018, RLIC VI withdrew this permitted practice and no longer recognizes the RLIC VI XOL Coverage Amount as an admitted asset and as paid in surplus. As of December 31, 2018 and 2017, the Company carried its investment in RLIC VI at zero as the entity had an unassigned deficit, excluding the special surplus funds as of December 31, 2018 and the XOL asset as of December 31, 2017. Effective January 1, 2018, RLIC IX was granted a permitted practice from the Vermont Department to carry their reserves on a U.S. GAAP basis, pursuant to section 6048K(a)(2) of the Vermont Insurance Code. In addition, the difference between reserves under NAIC SAP and the permitted practice reserve held by RLIC IX will flow through special surplus funds, rather than through RLIC IX's unassigned deficit. Prior to January 1, 2018, RLIC IX had been granted a permitted practice from the Vermont Department to record an XOL reinsurance agreement with Canada Life as a gross admitted asset (the "RLIC IX XOL Coverage Amount") and as paid in surplus thereby including such amounts in RLIC IX's statutory surplus. The RLIC IX XOL Coverage Amount was equal to the lesser of the excess of total reserves under NAIC SAP less the qualified reserves (an amount agreed upon by the Company, the Virginia Bureau and the Vermont Department), or $620.0 minus the balance of any unreimbursed payments previously made by Canada Life under this XOL reinsurance agreement. RLIC IX was not permitted to record any deferred tax amounts that might otherwise have been required by SSAP No. 101 related to the RLIC IX XOL Coverage Amount. Effective January 1, 2018, RLIC IX withdrew this permitted practice and no longer recognizes the RLIC IX XOL Coverage Amount as an admitted asset and as paid in surplus. As of December 31, 2018 and 2017, the Company carried its investment in RLIC IX at zero as the entity had an unassigned deficit, excluding the special surplus funds as of December 31, 2018 and the XOL asset as of December 31, 2017. Effective January 1, 2018, RLIC X was granted a permitted practice from the Vermont Department to carry their reserves on a U.S. GAAP basis, pursuant to section 6048K(a)(2) of the Vermont Insurance Code. In addition, the difference between reserves under NAIC SAP and the permitted practice reserve held by RLIC X will flow through special surplus funds, rather than through RLIC X's unassigned deficit. Prior to January 1, 2018, RLIC X had been granted a permitted practice from the Vermont Department to record an XOL reinsurance agreement with Hannover Life Reassurance Company of America ("Hannover") as a gross admitted asset (the "RLIC X XOL Coverage Amount") and as paid in surplus thereby including such amounts in RLIC X's statutory surplus. The RLIC X XOL Coverage Amount was equal to the lesser of the excess of total reserves under NAIC SAP less the qualified reserves (an amount agreed upon by the Company, the Virginia Bureau and the Vermont Department), or $900.0 minus the balance of any unreimbursed payments previously made by Hannover under this XOL reinsurance agreement. RLIC X was not permitted to record any deferred tax amounts that might otherwise have been required by SSAP No. 101 related to the RLIC X XOL Coverage Amount. Effective January 1, 2018, F-24 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) RLIC X withdrew this permitted practice and no longer recognizes the RLIC X XOL Coverage Amount as an admitted asset and as paid in surplus. As of December 31, 2018 and 2017, the Company carried its investment in RLIC X at zero as the entity had an unassigned deficit, excluding the special surplus funds as of December 31, 2018 and the XOL asset as of December 31, 2017. The Company has an investment in Newco which is audited and fully admitted at U.S. GAAP equity, adjusted for goodwill, in common stock affiliates. As of December 31, 2018 and 2017, the Company's investment in Newco was $39.2 and $37.2, respectively, of which $3.8 and $4.8, respectively, was statutory goodwill. The goodwill is being amortized over 10 years in accordance with SSAP No. 97. The amount amortized for the years ended December 31, 2018, 2017 and 2016 was $1.0 in each year. As of December 31, 2018 and 2017, the Company also had an investment of $4.3 and $5.3, respectively, in a downstream noninsurance holding company, GNWLAAC RE, included in other invested assets. GNWLAAC RE is audited and fully admitted at U.S. GAAP equity. (c) Mortgage Loans As of December 31, 2018 and 2017, the Company's mortgage loan portfolio consisted of 445 and 461, respectively, of first lien commercial mortgage loans. The loans, which were originated by the Company through a network of mortgage bankers, were made only on developed and leased properties and had a maximum loan-to-value ratio of 75% as of the date of origination. The Company does not engage in construction lending or land loans. The maximum and minimum lending rates for mortgage loans during 2018 were 5.8% and 4.1%, respectively. All of the mortgage loans were current as of December 31, 2018 and 2017. The Company's mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of mortgage loans is stated at original cost net of prepayments and amortization. The Company diversifies its mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for mortgage loans as of December 31, 2018 and 2017:

2018 2017 ------------------ ------------------ Carrying Percent of Carrying Percent of Property type value total value total ------------- -------- ---------- -------- ---------- Retail..................... $ 680.4 36.4% $ 637.6 35.9% Industrial................. 534.6 28.6 505.9 28.5 Office..................... 438.1 23.5 411.7 23.2 Apartments................. 119.7 6.4 120.6 6.8 Mixed use.................. 50.6 2.7 54.4 3.1 Other...................... 43.8 2.4 45.2 2.5 -------- ----- -------- ----- Total principal balance. $1,867.2 100.0% $1,775.4 100.0% ======== ===== ======== =====

F-25 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2018 2017 ------------------ ------------------ Carrying Percent of Carrying Percent of Geographic region value total value total ----------------- -------- ---------- -------- ---------- South Atlantic............. $ 491.6 26.3% $ 478.0 26.9% Pacific.................... 452.3 24.2 453.7 25.6 Middle Atlantic............ 214.4 11.5 200.3 11.3 West North Central......... 186.6 10.0 181.4 10.2 East North Central......... 149.1 8.0 143.8 8.1 Mountain................... 133.3 7.1 97.4 5.5 West South Central......... 89.5 4.8 76.2 4.3 East South Central......... 85.1 4.6 87.6 4.9 New England................ 65.3 3.5 57.0 3.2 -------- ----- -------- ----- Total principal balance. $1,867.2 100.0% $1,775.4 100.0% ======== ===== ======== =====

Mortgage loans are considered past due when contractual payments have not been received from the borrower by the required payment date. The Company had no loans greater than 30 days past due as of December 31, 2018 and 2017. The Company had no impaired loans as of December 31, 2018 and 2017. The following table sets forth the age analysis of mortgage loans and identification of mortgage loans in which the insurer is a participant or co-lender in a mortgage loan agreement as of December 31, 2018 and 2017:

2018 2017 -------------------------- -------------------------- Commercial Commercial -------------------------- -------------------------- Insured All Other Total Insured All Other Total ------- --------- -------- ------- --------- -------- Recorded investment (All) Current (less than 30 days past due)...... $ -- $1,867.2 $1,867.2 $ -- $1,775.4 $1,775.4 Interest reduced Recorded investment... $ -- $ -- $ -- $ -- $ 1.8 $ 1.8 Number of loans....... -- -- -- -- 2 2 Percent reduced....... -- % -- % -- % -- % 0.9% 0.9% Participant or co-lender in a mortgage loan agreement Recorded investment... $ -- $ 29.3 $ 29.3 $ -- $ 29.6 $ 29.6

As of December 31, 2018 and 2017, the Company held no farm, mezzanine or residential mortgage loans. In evaluating the credit quality of mortgage loans, the Company assesses the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratios to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable the Company to recover its unpaid principal balance in the event of default by the borrower. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower's liquidity or access to other resources that may result in the Company's expectation that the borrower will continue to make the future scheduled payments. A lower loan-to-value indicates that its loan value is more likely to be recovered in the event of default by the borrower if the property was sold. During the years ended December 31, 2018, 2017 and 2016, the Company originated $7.8, $43.4 and $32.0, respectively, in mortgage loans secured by real estate in California. As of December 31, 2018 and 2017, the Company held $286.5 and $301.9, respectively, of mortgages secured by real estate in California, which was 15.3% and 17.0%, respectively, of its total mortgage portfolio. F-26 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The following tables set forth the average loan-to-value of mortgage loans by property type as of December 31, 2018 and 2017:

2018 Average loan-to-value/(1)/ --------------------------------------------------- Greater Property type 0%-50% 51%-60% 61%-75% 76%-100% than 100% Total ------------- ------ ------- ------- -------- --------- -------- Retail................... $241.3 $171.8 $267.3 $ -- $ -- $ 680.4 Industrial............... 249.6 87.8 183.1 14.1 -- 534.6 Office................... 107.0 174.4 156.7 -- -- 438.1 Apartments............... 56.4 22.1 36.4 4.8 -- 119.7 Mixed use................ 24.2 7.6 18.8 -- -- 50.6 Other.................... 7.3 20.2 16.3 -- -- 43.8 ------ ------ ------ ----- ---- -------- Total................. $685.8 $483.9 $678.6 $18.9 $ -- $1,867.2 ====== ====== ====== ===== ==== ======== Percent of total......... 36.8% 25.9% 36.3% 1.0% -- % 100.0% ====== ====== ====== ===== ==== ======== Weighted-average debt service coverage ratio/(2)/............. 2.6 2.5 1.6 1.5 -- 2.2 ====== ====== ====== ===== ==== ========

-------- /(1)/Average loan-to-value is based on the Company's most recent estimate of the fair value for the underlying property as of the date indicated above. Values are evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. /(2)/Debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan.

2017 Average loan-to-value/(1)/ --------------------------------------------------- Greater Property type 0%-50% 51%-60% 61%-75% 76%-100% than 100% Total ------------- ------ ------- ------- -------- --------- -------- Retail................... $292.8 $124.1 $220.7 $ -- $ -- $ 637.6 Industrial............... 244.3 90.2 169.3 2.1 -- 505.9 Office................... 192.8 62.3 156.6 -- -- 411.7 Apartments............... 78.1 26.8 10.8 4.9 -- 120.6 Mixed use................ 27.8 19.7 6.9 -- -- 54.4 Other.................... 24.4 15.7 5.1 -- -- 45.2 ------ ------ ------ ---- ---- -------- Total................. $860.2 $338.8 $569.4 $7.0 $ -- $1,775.4 ====== ====== ====== ==== ==== ======== Percent of total......... 48.4% 19.1% 32.1% 0.4% -- % 100.0% ====== ====== ====== ==== ==== ======== Weighted-average debt service coverage ratio/(2)/............. 3.3 1.8 1.6 1.1 -- 2.5 ====== ====== ====== ==== ==== ========

-------- /(1)/Average loan-to-value is based on the Company's most recent estimate of the fair value for the underlying property as of the date indicated above. Values are evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. /(2)/Debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. F-27 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The following tables set forth the debt service coverage ratio for fixed rate mortgage loans by property type as of December 31, 2018 and 2017:

2018 Debt service coverage ratio -- fixed rate/(1)/ ------------------------------------------------------------------- Less than Greater than Property type 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 2.00 Total ------------- --------- ----------- ----------- ----------- ------------ -------- Retail................... $ 6.0 $ 38.7 $146.4 $285.7 $203.6 $ 680.4 Industrial............... 3.7 29.2 65.8 197.3 238.6 534.6 Office................... 16.9 19.2 35.6 230.5 135.9 438.1 Apartments............... -- 16.9 25.1 25.5 52.2 119.7 Mixed use................ 0.2 -- 2.9 24.3 23.2 50.6 Other.................... 11.3 0.3 16.3 9.2 6.7 43.8 ----- ------ ------ ------ ------ -------- Total................. $38.1 $104.3 $292.1 $772.5 $660.2 $1,867.2 ===== ====== ====== ====== ====== ======== Percent of total......... 2.0% 5.6% 15.6% 41.4% 35.4% 100.0% ===== ====== ====== ====== ====== ======== Weighted-average loan-to-value/(2)/..... 51.3% 61.9% 62.6% 59.0% 42.9% 53.9% ===== ====== ====== ====== ====== ========

-------- /(1)/Debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. /(2)/Average loan-to-value is based on the Company's most recent estimate of the fair value for the underlying property as of the date indicated above. Values are evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan.

2017 Debt service coverage ratio -- fixed rate/(1)/ ------------------------------------------------------------------- Less than Greater than Property type 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 2.00 Total ------------- --------- ----------- ----------- ----------- ------------ -------- Retail................... $ 7.9 $ 60.2 $109.6 $222.0 $237.9 $ 637.6 Industrial............... 3.6 17.7 69.3 205.6 209.7 505.9 Office................... 15.5 9.7 50.4 94.1 242.0 411.7 Apartments............... -- 7.7 24.3 31.2 57.4 120.6 Mixed use................ 0.4 1.1 -- 27.1 25.8 54.4 Other.................... -- 12.0 -- 13.7 19.5 45.2 ----- ------ ------ ------ ------ -------- Total................. $27.4 $108.4 $253.6 $593.7 $792.3 $1,775.4 ===== ====== ====== ====== ====== ======== Percent of total......... 1.5% 6.1% 14.3% 33.5% 44.6% 100.0% ===== ====== ====== ====== ====== ======== Weighted-average loan-to-value/(2)/..... 52.1% 57.6% 59.2% 56.9% 37.0% 48.3% ===== ====== ====== ====== ====== ========

-------- /(1)/Debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. /(2)/Average loan-to-value is based on the Company's most recent estimate of the fair value for the underlying property as of the date indicated above. Values are evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. F-28 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) As of December 31, 2018 and 2017, the Company did not have any floating rate mortgage loans. Low Income Housing Tax Credit The number of remaining years of unexpired tax credits and the required holding period as of December 31, 2018:

Required holding Fund name Remaining years period --------- --------------- ---------------- Alliant EWA Villages II Hawaii, LLC.. 6 15 Centerline Georgia Investor VII, LLC. 4 15 CCL Missouri Investor III, LLC....... -- 15 CCL Missouri Investor V, LLC......... -- 15 Savannah Tax Credit Fund, LLC........ -- 15 WNC Hawaii Tax Credits 36, LP........ -- 15

The low income housing tax credit ("LIHTC") and other tax benefits recognized during the years ending December 31, 2018, 2017 and 2016 were as follows:

Fund name State 2018 2017 2016 --------- -------- ---- ---- ---- Alliant EWA Villages II Hawaii, LLC.. Hawaii $0.2 $0.2 $0.2 Centerline Georgia Investor VII, LLC. Georgia 0.2 0.4 0.4 CCL Missouri Investor III, LLC....... Missouri 0.1 0.4 0.5 CCL Missouri Investor V, LLC......... Missouri 0.1 0.2 0.2 Savannah Tax Credit Fund, LLC........ Georgia 0.1 0.1 0.1 WNC Hawaii Tax Credit 36, LP......... Hawaii -- 0.1 0.1 ---- ---- ---- Total................................ $0.7 $1.4 $1.5 ==== ==== ====

The balance of the investment recognized was as follows:

Fund name 2018 2017 --------- ---- ---- Alliant EWA Villages II Hawaii, LLC.. $0.6 $0.6 Centerline Georgia Investor VII, LLC. -- 0.1 CCL Missouri Investor III, LLC....... -- -- CCL Missouri Investor V, LLC......... -- -- Savannah Tax Credit Fund, LLC........ -- -- WNC Hawaii Tax Credits 36, LP........ -- -- ---- ---- Total................................ $0.6 $0.7 ==== ====

As of December 31, 2018, there were no LIHTC properties currently subject to any regulatory reviews. As of December 31, 2018, the Company's investment in LIHTC was not considered significant and does not exceed 10% of total admitted assets. The fair value of the below listed limited partnership funds declined during the year ended December 31, 2018 as follows:

Description Amount of impairment ----------- -------------------- Alinda Infrastructure Fund I, L.P.. $0.1

F-29 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The decline was determined to be other than temporary and the amounts written down were accounted for as realized losses. (d) Derivative Instruments The Company uses interest rate swaps to reduce risks from changes in interest rates and to alter interest rate exposures arising from mismatches between assets and liabilities. Under interest rate swaps, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty at each due date. The Company uses exchange-traded futures to reduce the market risks from changes in interest rates and equity indexes. Under exchange traded financial futures, the Company purchases or sells a futures contract on an exchange and posts variation margin to the exchange on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company accesses the exchange through regulated futures commission merchants who are members of a trading exchange. The Company uses cross currency swaps to reduce market risks from changes in foreign currency rates and to alter interest rate exposure arising from mismatches between assets and liabilities. In a cross currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a forward exchange rate calculated by reference to an agreed upon principal amount. The principal amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company also purchases over-the-counter equity index call and put options to hedge the risk embedded in the Company's annuity liabilities. These transactions are entered into pursuant to an International Swaps and Derivatives Association, Inc ("ISDA") Master Agreement. The Company may make a single option premium payment to the counterparty at the inception of the transaction or a series of premium payment installations over the life of the option. The Company uses over-the-counter equity return swaps to hedge the risk embedded in the Company's annuity liabilities. Under equity return swaps, the Company agrees with other parties to exchange, at specific intervals, the difference between equity index returns and interest amounts calculated by reference to an agreed upon notional principal amount. The Company sells protection under single name credit default swaps in combination with purchasing other investments to reproduce investment characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the ISDA. Under these terms, credit default triggers are defined as bankruptcy, failure to pay, or restructuring, if applicable. The Company's maximum exposure to credit loss equals the notional value of the credit default swaps. In the event of default for credit default swaps, the Company is typically required to pay the protection holder the full notional value less a recovery rate determined at auction. F-30 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The Company had no credit default swaps where it sold protection on single name reference entities as of December 31, 2018 as each of the credit default swaps in the table below matured on March 20, 2018. The following table sets forth credit default swaps where the Company sold protection on single name reference entities and the carrying value as of December 31, 2017:

2017 --------------------------------- Reference entity credit rating and maturity Notional value Assets Liabilities ------------------------------------------- -------------- ------ ----------- A Matures in less than one year........... $ 5.0 $-- $-- BBB Matures in less than one year......... 5.0 -- -- ----- --- --- Total single name credit default swaps.... $10.0 $-- $-- ===== === ===

Counterparty Risk The Company is exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit ratings. The Company manages counterparty risk by transacting with multiple high-rated counterparties and uses collateral support where possible. The Company's maximum credit exposure to derivative counterparties is limited to the sum of the net fair value of contracts with counterparties that exhibit a positive fair value net of collateral. The current credit exposure of the Company's derivative contracts is limited to net positive fair value owed by the counterparties, less collateral posted by the counterparties to the Company. Credit risk is managed by entering into transactions with creditworthy counterparties and requiring the posting of collateral. In many instances, new over-the-counter derivatives contracts will require both parties to post initial margin, thereby resulting in over collateralizations. The Company also attempts to minimize its exposure to credit risk through the use of various credit monitoring techniques and monitoring overall collateral held. All of the net credit exposure for the Company from derivative contracts is with investment-grade counterparties. As of December 31, 2018, the counterparties to all of the Company's derivatives had a minimum credit rating of BBB+. As of December 31, 2018 and 2017, the Company held derivative counterparty collateral with fair value of $10.1 and $29.0, respectively. The table below provides a summary of the net carrying value, fair value and notional value by the type of derivative instruments held by the Company as of December 31, 2018 and 2017:

2018 2017 ----------------------- ------------------------ Carrying Fair Notional Carrying Fair Notional Derivative type value value value value value value --------------- -------- ----- -------- -------- ----- -------- Interest rate swap....... $ -- $ -- $ -- $ -- $ -- $ 4.9 Financial futures........ -- -- 1,222.2 -- -- 1,104.8 Cross currency swaps..... 0.7 1.2 19.7 -- -- -- Equity index options..... 39.0 39.0 2,628.0 79.6 79.6 2,420.3 Equity return swaps...... -- -- -- (2.0) (2.0) 75.0 Credit default swaps..... -- -- -- -- -- 10.0 ----- ----- -------- ----- ----- -------- Totals................ $39.7 $40.2 $3,869.9 $77.6 $77.6 $3,615.0 ===== ===== ======== ===== ===== ========

The interest rate swaps, financial futures, equity index options, equity return swaps, and credit default swaps in the table above are presented net of their respective liabilities. The Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus present derivative assets and liabilities separately. F-31 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The Company has no amounts excluded from the assessment of hedge effectiveness for the years ended December 31, 2018, 2017 and 2016. The Company recorded no unrealized gains or losses as of December 31, 2018 and 2017 resulting from derivatives that no longer qualify for hedge accounting. The futures margin account recorded as part of derivative assets was $2.6 and $3.1 as of December 31, 2018 and 2017, respectively. The Company has no derivative contracts with financing premiums in which premium cost is paid at the end of the derivative contract or throughout the derivative contract. Following the downgrades of the Company in 2017 and September 2018, the Company actively responded to any risk to the Company's derivatives portfolio arising from the right of its counterparties to terminate their derivatives transactions with the Company as a result of such downgrade. The Company negotiated with certain derivative counterparties to determine whether they would exercise their rights to terminate the transactions, agree to maintain the transactions with the Company and defer their rights to terminate them or whether they would permit the Company to move the transactions to clearing, subject to available capacity from its clearing agents. Moving forward, the Company's ability to enter into new derivatives transactions may be challenging and remains an active discussion with counterparties. (e) Net Investment Income For the years ended December 31, 2018, 2017 and 2016, the sources of net investment income of the Company were as follows:

2018 2017 2016 ------ ------ ------ Bonds............................ $529.4 $534.1 $541.3 Preferred and common stocks...... 3.8 39.5 83.4 Mortgage loans................... 87.6 84.1 85.8 Contract loans................... 27.2 32.7 32.2 Short-term investments........... 5.0 2.6 1.4 Real estate...................... 3.3 3.3 5.3 Other invested assets............ 6.5 10.4 6.8 Derivative instruments........... (5.7) (20.3) 0.4 Other............................ 0.4 0.3 0.4 ------ ------ ------ Gross investment income....... 657.5 686.7 757.0 Investment and interest expenses. (17.7) (17.5) (15.4) ------ ------ ------ Net investment income......... $639.8 $669.2 $741.6 ====== ====== ======

The number of CUSIPs sold, redeemed or otherwise disposed as a result of a callable feature and the aggregate amount of investment income generated as a result of a prepayment penalty and/or accelerations fees for the years ended December 31, 2018 and 2017 were as follows:

2018 2017 ---------------- ---------------- General Separate General Separate account account account account ------- -------- ------- -------- (1) Number of CUSIPS...................... 22 -- 38 -- (2) Aggregate amount of investment income. $2.9 $-- $4.9 $--

F-32 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) As discussed in Note 1(u), effective January 1, 2017, the NAIC adopted modifications to SSAP No. 26R and SSAP No. 43R which clarified that the amount of prepayment penalties or acceleration fees reported as investment income should equal the total proceeds received less the par value of the investment; and any difference between the carrying value and the par value at the time of disposal should be reported as realized capital gains and losses. For the years ended December 31, 2018, 2017 and 2016, proceeds and gross realized capital gains and losses resulting from sales, maturities, impairments, or other redemptions of investment securities were as follows:

2018 2017 2016 -------- -------- -------- Proceeds from sales, maturities or other redemptions of bonds. $1,614.4 $1,605.3 $1,704.2 ======== ======== ======== Gross realized capital: Gains on sales............................................. $ 121.8 $ 135.8 $ 165.0 Losses on sales............................................ (152.2) (113.9) (255.6) -------- -------- -------- Net realized gains (losses) on sales................... (30.4) 21.9 (90.6) Impairment losses............................................. (0.1) (2.6) (2.4) -------- -------- -------- Subtotal............................................... (30.5) 19.3 (93.0) Federal income tax (provision) benefit........................ 1.6 2.2 (7.4) Transfers to IMR, net of tax.................................. 11.7 (8.1) (7.5) -------- -------- -------- Realized capital gains (losses), net................... $ (17.2) $ 13.4 $ (107.9) ======== ======== ========

(f) Impairment of Investment Securities The evaluation of OTTI is subject to risks and uncertainties and is intended to determine the appropriate amount and timing for recognizing an impairment charge. The assessment of whether such impairment has occurred is based on management's best estimate of the cash flows to be collected at the individual security level. The Company regularly monitors its investment portfolio to ensure that securities that may be other-than-temporarily impaired are identified in a timely manner and that any impairment charges are recognized in the proper period. The Company recognizes OTTI on loan-backed and structured securities in an unrealized loss position when one of the following circumstances exists: . The Company does not expect full recovery of the amortized cost based on its estimate of cash flows expected to be collected; . The Company intends to sell a security; or . The Company does not have the intent and ability to retain the investment for a period of time sufficient to recover the amortized cost basis of the investment. As of December 31, 2018, the Company had no loan-backed securities which recognized OTTI. As of December 31, 2018, the Company had no loan-backed securities with recognized OTTI where it had the intent to sell or did not have the intent and ability to retain the investment for a period of time sufficient to recover the amortized cost basis. While the OTTI model for debt securities generally includes fixed maturity securities, there are certain hybrid securities that are classified as fixed maturity securities where the application of a debt impairment model depends on whether there has been any evidence of deterioration in credit of the issuer. Under certain circumstances, evidence of deterioration in credit of the issuer may result in the application of the equity impairment model. F-33 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) For equity securities, the Company recognizes an impairment charge in the period in which the Company determines that the security will not recover to book value within a reasonable period. The Company determines what constitutes a reasonable period on a security-by-security basis based upon consideration of all the evidence available to it, including the magnitude of an unrealized loss and its duration. In any event, this period does not exceed 18 months for common equity securities. The Company measures OTTI based upon the difference between the amortized cost of a security and its fair value. The following tables present the gross unrealized losses and fair value of the Company's investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017:

2018 ----------------------------------------------------------------- Less Than 12 Months 12 Months or More -------------------------------- -------------------------------- Gross Gross unrealized Number of unrealized Number of Description of securities Fair value losses securities Fair value losses securities ------------------------- ---------- ---------- ---------- ---------- ---------- ---------- Fixed maturity securities: U.S. governments and U.S. government agencies................ $ 43.4 $ (1.6) 3 $ 64.2 $ (5.1) 3 All other governments..... 50.1 (1.4) 13 8.2 (0.3) 2 States, territories and possessions......... 20.6 (0.2) 4 -- -- -- Special revenue and special assessment obligations............. 21.3 (0.6) 7 16.6 (0.4) 3 Industrial and miscellaneous........... 3,389.4 (178.0) 646 676.8 (69.8) 129 Residential mortgage-backed......... 136.9 (2.2) 23 116.8 (4.3) 25 Commercial mortgage-backed......... 226.1 (6.3) 38 180.3 (12.4) 33 Other asset-backed........ 191.0 (4.0) 51 52.1 (0.6) 17 Hybrids................... 40.6 (2.0) 5 7.8 (2.2) 1 -------- ------- --- -------- ------ --- Total fixed maturity securities................. 4,119.4 (196.3) 790 1,122.8 (95.1) 213 -------- ------- --- -------- ------ --- Total equity securities...... 43.5 (2.2) 7 -- -- -- -------- ------- --- -------- ------ --- Total temporarily impaired securities.......... $4,162.9 $(198.5) 797 $1,122.8 $(95.1) 213 ======== ======= === ======== ====== === % below cost - fixed maturity securities: (less than)20% below cost.................... $4,111.7 $(194.1) 789 $1,099.9 $(88.7) 207 20-50% below cost......... 7.7 (2.2) 1 22.9 (6.4) 6 (greater than)50% below cost.............. -- -- -- -- -- -- -------- ------- --- -------- ------ --- Total fixed maturity securities................. 4,119.4 (196.3) 790 1,122.8 (95.1) 213 -------- ------- --- -------- ------ --- % below cost - equity securities: (less than)20% below cost.................... 43.5 (2.2) 7 -- -- -- 20-50% below cost......... -- -- -- -- -- -- (greater than)50% below cost.............. -- -- -- -- -- -- -------- ------- --- -------- ------ --- Total equity securities...... 43.5 (2.2) 7 -- -- -- -------- ------- --- -------- ------ --- Total temporarily impaired securities.......... $4,162.9 $(198.5) 797 $1,122.8 $(95.1) 213 ======== ======= === ======== ====== === Investment grade -- fixed maturity securities................. $3,804.2 $(178.9) 707 $1,078.7 $(89.8) 201 Below investment grade -- fixed maturity securities................. 315.2 (17.4) 83 44.1 (5.3) 12 Investment grade -- equity securities.......... 33.8 (1.9) 6 -- -- -- Below investment grade -- equity securities....... 9.7 (0.3) 1 -- -- -- -------- ------- --- -------- ------ --- Total temporarily impaired securities.......... $4,162.9 $(198.5) 797 $1,122.8 $(95.1) 213 ======== ======= === ======== ====== ===

F-34 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 --------------------------------------------------------- Less Than 12 Months 12 Months or More ---------------------------- ---------------------------- Gross Gross Fair unrealized Number of Fair unrealized Number of Description of securities value losses securities value losses securities ------------------------- ------ ---------- ---------- ------ ---------- ---------- Fixed maturity securities: U.S. governments and U.S. government agencies................ $ 10.5 $(0.1) 3 $ 61.3 $ (0.8) 2 All other governments..... 8.5 -- 2 4.8 (0.5) 1 States, territories and possessions......... -- -- -- 4.8 (0.2) 1 Special revenue and special assessment obligations............. 16.9 (0.1) 3 4.9 (0.1) 1 Industrial and miscellaneous........... 460.8 (6.1) 91 440.5 (16.9) 77 Residential mortgage-backed......... 96.1 (0.8) 24 64.7 (1.9) 15 Commercial mortgage-backed......... 153.9 (1.1) 21 118.6 (7.0) 22 Other asset-backed........ 62.7 (0.7) 16 22.8 (0.2) 12 Hybrids................... 9.1 (0.9) 1 -- -- -- ------ ----- --- ------ ------ --- Total fixed maturity securities................. 818.5 (9.8) 161 722.4 (27.6) 131 ------ ----- --- ------ ------ --- Total equity securities...... -- -- -- -- -- -- ------ ----- --- ------ ------ --- Total temporarily impaired securities.......... $818.5 $(9.8) 161 $722.4 $(27.6) 131 ====== ===== === ====== ====== === % below cost - fixed maturity securities: (less than)20% below cost.................... $818.4 $(9.8) 160 $720.6 $(27.1) 130 20-50% below cost......... 0.1 -- 1 1.8 (0.5) 1 (greater than)50% below cost.............. -- -- -- -- -- -- ------ ----- --- ------ ------ --- Total fixed maturity securities................. 818.5 (9.8) 161 722.4 (27.6) 131 ------ ----- --- ------ ------ --- % below cost - equity securities: (less than)20% below cost.................... -- -- -- -- -- -- 20-50% below cost......... -- -- -- -- -- -- (greater than)50% below cost.............. -- -- -- -- -- -- ------ ----- --- ------ ------ --- Total equity securities...... -- -- -- -- -- -- ------ ----- --- ------ ------ --- Total temporarily impaired securities.......... $818.5 $(9.8) 161 $722.4 $(27.6) 131 ====== ===== === ====== ====== === Investment grade -- fixed maturity securities................. $776.3 $(8.4) 148 $662.8 $(24.6) 119 Below investment grade -- fixed maturity securities................. 42.2 (1.4) 13 59.6 (3.0) 12 Investment grade -- equity securities.......... -- -- -- -- -- -- Below investment grade -- equity securities....... -- -- -- -- -- -- ------ ----- --- ------ ------ --- Total temporarily impaired securities.......... $818.5 $(9.8) 161 $722.4 $(27.6) 131 ====== ===== === ====== ====== ===

The investment securities in an unrealized loss position as of December 31, 2018 consisted of 1,010 securities, accounting for unrealized losses of $293.6. Of these unrealized losses as of December 31, 2018, 92.2% were investment grade (NAIC designation 1 through 2) and 97.1% were less than 20% below cost. These unrealized losses were primarily attributable to increase in interest rates and were mostly concentrated within the Company's industrial and miscellaneous securities. Most of the unrealized losses related to non-structured securities pertained to securities that have been in an unrealized position for less than 12 months. In an examination of these securities, the Company considered all available evidence, including the issuers' financial condition and current industry events to develop a conclusion on the amount and timing of the cash flows expected to be collected. Based on this evaluation, the Company determined that the unrealized losses on these debt securities represented temporary impairments as of December 31, 2018. F-35 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Expectations that the Company's investments in corporate securities will continue to perform in accordance with their contractual terms are based on evidence gathered through its normal credit surveillance process. Although the Company does not anticipate such events, it is at least reasonably possible that issuers of its investments will perform worse than current expectations. Such events may lead the Company to recognize potential future write-downs within its portfolio of corporate securities. It is also reasonably possible that such unanticipated events would lead the Company to dispose of those certain holdings and recognize the effects of any market movements in its financial statements. Most of the unrealized losses related to mortgage-backed and asset-backed securities pertain to securities that have been in that position for 12 months or more. Rating agencies have actively reviewed the credit quality ratings on these securities and these securities remain primarily investment grade. The Company has examined the performance of the underlying collateral and expects that its investments in mortgage-backed and asset-backed securities will continue to perform in accordance with their contractual terms with no adverse changes in cash flows. Despite the considerable analysis and rigor employed by the Company's evaluation of mortgage-backed and asset-backed securities, it is at least reasonably possible that the underlying collateral of these investments will perform worse than current market expectations. Such events may lead to adverse changes in cash flows on the Company's holdings of mortgage-backed and asset-backed securities and potential future write-downs within its portfolio of mortgage-backed and asset-backed securities. While certain securities included in the preceding table were considered other-than-temporarily impaired, the Company expected to recover the new amortized cost based on its estimate of cash flows to be collected. As of December 31, 2018, the Company expects to recover its amortized cost on the securities included in the table above and does not intend to sell, or the Company has the intent and ability to retain the investment for a period of time sufficient to recover the amortized cost basis of the investment. (g) Sub-prime Mortgage Related Risk 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. As of December 31, 2018 and 2017, the Company did not hold any direct investments in sub-prime or Alt-A mortgage loans. Alt-A mortgage loans are loans considered alternative or low documentation loans. The Company has direct exposure in other investments with the underlying sub-prime or Alt-A related risk. The following tables provide information about the Company's sub-prime and Alt-A exposure as of December 31, 2018 and 2017:

2018 ---------------------------------------------- Book adjusted OTTI losses carrying value Fair recognized to Description Actual cost ("BACV") value date ----------- ----------- -------------- ----- ------------- Structured Securities. $ 7.5 $ 7.5 $ 8.0 $ 9.9 2017 ---------------------------------------------- OTTI losses Fair recognized to Description Actual cost BACV value date ----------- ----------- -------------- ----- ------------- Structured Securities. $18.4 $18.5 $19.7 $12.4

F-36 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The Company did not have any underwriting exposure to sub-prime or Alt-A mortgages as of December 31, 2018 and 2017. (h) Securities Lending Securities loaned are re-registered but remain beneficially owned by the Company. None of the collateral is restricted. Cash collateral received is recorded in securities lending reinvested collateral and the offsetting liabilities are recorded in payable for securities lending. There were no securities loaned for a time period beyond one year from the reporting date and there were no securities loaned in the Company's separate accounts. As of December 31, 2018 and 2017, the fair value of loaned securities was $23.1 and $41.7, respectively, and the fair value of the collateral held was $24.0 and $43.5, respectively. (i) Assets Pledged as Collateral As of December 31, 2018 and 2017, the Company did not have any pledged assets as collateral for securities lending transactions or dollar repurchase agreements. The following table provides information on collateral received under securities lending agreements as of December 31, 2018 and 2017:

Amortized cost -------------- Aggregate amount cash collateral received 2018 2017 ----------------------------------------- ----- ----- Open............................................................................ $ -- $ -- 30 days or less................................................................. 24.0 43.5 31 to 60 days................................................................... -- -- 61 to 90 days................................................................... -- -- Greater than 90 days............................................................ -- -- Subtotal..................................................................... 24.0 43.5 ----- ----- Securities received............................................................. -- -- ----- ----- Total collateral received.................................................... $24.0 $43.5 ===== ===== The aggregate fair value of all securities acquired from the sale, trade or use of the accepted collateral (reinvested collateral)............................ $24.0 $43.5 ===== =====

The following table provides information on reinvested collateral from securities lending agreements as of December 31, 2018 and 2017:

2018 2017 ------------------------- ------------------------- Securities lending Amortized cost Fair value Amortized cost Fair value ------------------ -------------- ---------- -------------- ---------- Open........................... $ -- $ -- $ -- $ -- 30 days or less................ 24.0 24.0 43.5 43.5 31 to 60 days.................. -- -- -- -- 61 to 90 days.................. -- -- -- -- 91 to 120 days................. -- -- -- -- 121 to 180 days................ -- -- -- -- 181 to 365 days................ -- -- -- -- Greater than 365 days.......... -- -- -- -- ----- ----- ----- ----- Subtotal.................... 24.0 24.0 43.5 43.5 Securities received............ -- -- -- -- ----- ----- ----- ----- Total collateral reinvested. $24.0 $24.0 $43.5 $43.5 ===== ===== ===== =====

F-37 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The Company's sources of cash that it uses to return collateral received from loaned securities is dependent on liquidity and other market conditions. The Company believes the fair value of reinvested collateral coupled with other available sources of cash is sufficient to fund collateral calls under adverse market conditions. (j) Restricted Assets The following table sets forth restricted assets including pledged assets held by the Company as of December 31, 2018 and 2017:

Gross (admitted and nonadmitted) restricted Percentage --------------------------------------------- ----------------------- 2018 ---------------------------- Gross Total (admitted Admitted separate Total and restricted Total account Total 2018 nonadmitted) to total general restricted from Increase/ admitted restricted to admitted Restricted asset category account assets Total 2017 (decrease) restricted total assets assets ------------------------- -------- ---------- -------- ------ ---------- ---------- ------------- ---------- Collateral held under security lending agreements................. $ 24.0 $-- $ 24.0 $ 43.5 $(19.5) $ 24.0 0.1% 0.1% FHLB capital stock........... 24.0 -- 24.0 16.1 7.9 24.0 0.1 0.1 On deposit with states....... 7.7 -- 7.7 7.7 -- 7.7 -- -- Pledged as collateral: Derivatives............... 111.8 -- 111.8 60.3 51.5 111.8 0.5 0.5 Reinsurance trust......... 1,010.4 -- 1,010.4 750.3 260.1 1,010.4 4.8 4.8 FHLB agreements........... 248.9 -- 248.9 58.9 190.0 248.9 1.2 1.2 -------- --- -------- ------ ------ -------- --- --- Total restricted assets.............. $1,426.8 $-- $1,426.8 $936.8 $490.0 $1,426.8 6.7% 6.7% ======== === ======== ====== ====== ======== === ===

There were no general account restricted assets, including pledged assets, supporting separate account activity as of December 31, 2018 and 2017. As of December 31, 2018 and 2017, the Company held no other restricted assets. Collateral received and reflected as assets within the reporting entity's financial statements as of December 31, 2018 and 2017:

2018 -------------------------------------------------------------------------------------------- % of % of BACV to BACV to total assets total (admitted and admitted Description BACV Fair value nonadmitted) assets ----------- ----- ---------- ------------- -------- a.Cash, cash equivalents and short-term investments. $ -- $ -- --% -- % b.Schedule D, Part 1................................ -- -- -- -- c.Schedule D, Part 2, Section 1..................... -- -- -- -- d.Schedule D, Part 2, Section 2..................... -- -- -- -- e.Schedule B........................................ -- -- -- -- f.Schedule A........................................ -- -- -- -- g.Schedule BA, Part 1............................... -- -- -- -- h.Schedule DL, Part 1............................... 23.5 23.1 0.1 0.1 i.Other............................................. -- -- -- -- ----- ----- --- --- j.Total collateral assets (a+b+c+d+e+f+g+h+i)....... $23.5 $23.1 0.1% 0.1% ===== ===== === ===

2018 ---------------------------------------------------------------------------- % of liability to Description Amount total liabilities ----------- ------ ----------------- k.Recognized obligation to return collateral asset. $24.0 0.2%

F-38 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 -------------------------------------------------------------------------------------------- % of % of BACV to BACV to total assets total (admitted and admitted Description BACV Fair value nonadmitted)* assets ----------- ----- ---------- ------------- -------- a.Cash, cash equivalents and short-term investments. $ -- $ -- --% -- % b.Schedule D, Part 1................................ -- -- -- -- c.Schedule D, Part 2, Section 1..................... -- -- -- -- d.Schedule D, Part 2, Section 2..................... -- -- -- -- e.Schedule B........................................ -- -- -- -- f.Schedule A........................................ -- -- -- -- g.Schedule BA, Part 1............................... -- -- -- -- h.Schedule DL, Part 1............................... 40.6 41.7 0.3 0.3 i.Other............................................. -- -- -- -- ----- ----- --- --- j.Total collateral assets (a+b+c+d+e+f+g+h+i)....... $40.6 $41.7 0.3% 0.3% ===== ===== === ===

2017 ---------------------------------------------------------------------------------- % of liability to total Description Amount liabilities ----------- ------ ----------------------- k.Recognized obligation to return collateral asset. $43.5 0.3%

(k) Working Capital Finance Investments As of December 31, 2018 and 2017, the Company had no working capital finance investments. (l) Offsetting and Netting of Assets and Liabilities The Company did not have any derivatives, repurchase and reverse repurchase, and securities borrowing and securities lending assets and liabilities that were offset and reported net as of December 31, 2018 and 2017. (m) Structured Notes The Company did not have any structured notes as of December 31, 2018 and 2017. (n) 5GI Securities The table below presents 5GI securities held as of December 31, 2018 and 2017:

Number of 5GI Aggregate fair Securities Aggregate BACV value ------------- -------------- -------------- Investments 2018 2017 2018 2017 2018 2017 ----------- ---- ---- ----- ----- ---- ---- (1) Bonds - AC........... 1 1 $1.0 $1.0 $1.1 $1.1 (2) LB&SS - AC........... 1 1 -- -- -- -- (3) Preferred Stock - AC. -- -- -- -- -- -- (4) Preferred Stock - FV. -- -- -- -- -- -- -- -- ---- ---- ---- ---- (5) Total (1+2+3+4)...... 2 2 $1.0 $1.0 $1.1 $1.1 == == ==== ==== ==== ====

AC - Amortized cost FV - Fair value F-39 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (o) Short Sales The Company did not have any short sale transactions during the years ended December 31, 2018, 2017 and 2016. (3)Aggregate Reserves As of December 31, 2018 and 2017, the following table summarizes the aggregate reserves and weighted-average interest rate assumptions for the Company:

2018 2017 ----------------- ----------------- Interest Interest Line of business Amount rates Amount rates ---------------- --------- -------- --------- -------- Individual life: Traditional................... $ 576.5 4.2% $ 578.5 4.3% Universal..................... 5,562.7 4.4 5,731.4 4.4 Individual supplementary contracts with life contingencies............... 90.8 4.4 82.9 4.4 --------- --------- Total individual life................. 6,230.0 6,392.8 --------- --------- Group life....................... 20.8 4.5 21.3 4.5 --------- --------- Total life............. 6,250.8 6,414.1 --------- --------- Annuities: Individual annuities: Immediate................. 1,325.4 5.9 1,437.3 5.9 Deferred.................. 2,709.5 4.1 2,863.4 4.1 Variable.................. 62.3 4.1 63.0 4.1 --------- --------- Total individual annuities............ 4,097.2 4,363.7 --------- --------- Group annuities: Other group annuities............... 42.4 6.3 46.5 6.5 --------- --------- Total annuities........ 4,139.6 4,410.2 --------- --------- Accidental death benefits........ 0.6 3.0 0.7 3.0 Disability: Active lives.................. 12.4 4.4 13.3 4.4 Disabled lives................ 75.5 3.4 77.1 3.4 --------- --------- Total disability........... 87.9 90.4 --------- --------- Other reserves................... 1,520.7 4.2 1,130.3 4.4 Accident and health: Group......................... 0.1 4.7 0.1 3.0 Individual.................... 1.2 4.6 1.4 4.8 --------- --------- Total accident and health........... 1.3 1.5 --------- --------- Total life, annuities, and accident and health aggregate reserves............. 12,000.9 12,047.2 --------- --------- Deposit-type funds: Supplementary contracts without life contingencies.......... 423.3 2.7 446.8 2.7 Other deposit-type funds....................... 352.6 3.7 201.0 4.8 --------- --------- Total deposit-type funds................ 775.9 647.8 --------- --------- Total aggregate reserves and deposit-type funds................ $12,776.8 $12,695.0 ========= =========

F-40 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Liabilities for life insurance products are based on the AE, AM (5), 41 CSO, 41 STD IND, 58 CSO, 58 CET, GPO 58, 61 CIET, 61 CSI, 80 CSO, 80 CET, or 2001 CSO tables. Liabilities for most annuities used the a-1949, 51 GAM, 71 IAM, 71 GAM, 83 GAM, 83a, 94 GAR, 94 VA MGDB, 37SA, a-2012, or a-2000 tables. As of December 31, 2018 and 2017, the Company had $661.4 and $538.4, respectively, of additional statutory reserves resulting from updates to its asset adequacy testing assumptions for universal life insurance products with secondary guarantees related to AG38 part 8D. The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium beyond the end of the month of death. There were $0.6 in reserves for surrender values in excess of reserves otherwise required as of December 31, 2018 and 2017. Additional premiums or charges apply for policies issued on substandard lives according to underwriting classifications. The substandard extra reserve held on such policies was either one-half of the annual gross extra premiums or calculated using appropriate multiples of standard rates of mortality. For two interest-sensitive life plans, with single or limited pay substandard extra premiums, the unearned portion of those substandard premiums are utilized as the substandard extra reserve. The reserve for substandard structured settlements policies is based on a flat extra mortality rate calculated at issue to produce the life expectancy determined during the underwriting process. The reserve for substandard immediate annuities issued in 2005 and later, other than structured settlement policies, is based on a standard mortality plus a flat extra calculated at issue to produce the present value of future benefits using the rated age determined during the underwriting process. As of December 31, 2018 and 2017, the Company had $32,592.4 and $37,955.6, respectively, of insurance in-force for which the future guaranteed maximum gross premiums were less than the future net premiums according to the standard of valuation set by the Virginia Bureau. Reserves to cover the above insurance totaled $304.0 and $311.1 as of December 31, 2018 and 2017, respectively, and are reported in aggregate reserves -- life and annuity contracts. The tabular interest, tabular less actual reserve released, and tabular cost has been determined by formula as described in the NAIC instructions. Tabular interest on funds not involving life contingencies has been determined according to the valuation rate for each contract. F-41 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) As of December 31, 2018, withdrawal characteristics of annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies were as follows:

2018 ---------------------------------------------------- Separate accounts Separate General with accounts Percent account guarantees nonguaranteed Total of total --------- ---------- ------------- --------- -------- Subject to discretionary withdrawal: With market value adjustment............. $ 2,333.7 $18.6 $ -- $ 2,352.3 14.6% At book value less current surrender charge of 5% or more... 58.7 -- -- 58.7 0.4 At fair value............ -- -- 5,171.4 5,171.4 32.1 --------- ----- -------- --------- ----- Total with market value adjustment or at fair value.................. 2,392.4 18.6 5,171.4 7,582.4 47.1 At book value without adjustment (minimal or no charge or adjustment)............ 1,287.6 -- -- 1,287.6 8.0 Not subject to discretionary withdrawal............. 7,206.0 -- 13.2 7,219.2 44.9 --------- ----- -------- --------- ----- Total (gross)............ 10,886.0 18.6 5,184.6 16,089.2 100.0% ===== Reinsurance ceded........ 5,879.8 -- -- 5,879.8 --------- ----- -------- --------- Total (net).............. $ 5,006.2 $18.6 $5,184.6 $10,209.4 ========= ===== ======== =========

Deferred and uncollected life insurance premiums and annuity considerations as of December 31, 2018 and 2017 were as follows:

2018 2017 ------------- ------------- Net of Net of Gross loading Gross loading ------ ------- ------ ------- Industrial............ $ 0.2 $ 0.2 $ 0.2 $ 0.2 Ordinary new business. -- -- -- -- Ordinary renewal...... 167.5 492.6 175.3 519.4 Group life............ -- (0.1) -- (0.1) ------ ------ ------ ------ Total.............. $167.7 $492.7 $175.5 $519.5 ====== ====== ====== ======

The Company did not have any direct written premiums generated through managing general agents or third-party administrators during the years ended December 31, 2018 and 2017. Guaranteed Minimum Death Benefit, Guaranteed Minimum Withdrawal Benefit and Guaranteed Annuitization Benefit The Company's variable annuity products provide a basic GMDB which provides a minimum account value to be paid upon the annuitant's death. Some variable annuity contracts permit contractholders to have the option to purchase through riders, at an additional charge, enhanced death benefits. The Company's separate account guarantees are primarily death benefits but also include some GMWBs and guaranteed annuitization benefits. The GMWB allows contractholders to withdraw a pre-defined percentage of account value or benefit each year, either for a specified period of time or for life. The guaranteed annuitization benefit generally provides for a guaranteed minimum level of income upon annuitization accompanied by the potential for upside market participation. As of December 31, 2018 and 2017, the Company had reserves related to these guaranteed benefits of $580.9 and $323.4, respectively. F-42 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The following table sets forth total account values, net of reinsurance, with death benefit and living benefit guarantees as of the dates indicated:

December 31, ----------------- 2018 2017 -------- -------- Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value.. $1,780.8 $2,169.3 Net amount at risk.............................................. $ 2.5 $ 2.2 Average attained age of contract holders........................ 75 74 Enhanced death benefits (step-up, roll-up, payment protection) account value................................................. $1,745.2 $2,202.0 Net amount at risk.............................................. $ 196.4 $ 114.2 Average attained age of contract holders........................ 75 75 Account values with living benefit guarantees: Guaranteed minimum withdrawal benefits.......................... $1,820.3 $2,311.0 Guaranteed annuitization benefits............................... $ 969.7 $1,168.1

The contracts underlying the GMWB and guaranteed annuitization benefits are considered "in the money" if the contract holder's benefit base, defined as the greater of the contract value or the protected value, is greater than the account value. As of December 31, 2018 and 2017, the Company's exposure related to GMWB and guaranteed annuitization benefits contracts that were considered "in the money" was $795.9 and $584.7, respectively. For GMWBs and guaranteed annuitization benefits, the only way the contractholder can monetize the excess of the benefit base over the account value of the contract is upon annuitization and the amount to be paid by the Company will either be in the form of a lump sum, or over the annuity period for certain GMWBs and guaranteed annuitization benefits. (4)Liability for Policy and Contract Claims Activity in the accident and health policy claim reserves, including the present value of amounts not yet due (which were included as a component of aggregate reserves) of $0.6, $0.8 and $0.9 as of December 31, 2018, 2017 and 2016 respectively, is summarized as follows:

2018 2017 2016 ----- ----- ----- Balance as of January 1......................... $48.0 $52.1 $49.8 Less reinsurance reserve credit and recoverable. 47.2 51.2 47.8 ----- ----- ----- Net balance as of January 1.............. 0.8 0.9 2.0 ----- ----- ----- Incurred related to: Current year................................. -- 0.1 0.3 Prior years.................................. -- 0.1 (0.3) ----- ----- ----- Total incurred........................... -- 0.2 -- ----- ----- ----- Paid related to: Current year................................. -- -- 0.2 Prior years.................................. 0.2 0.3 0.9 ----- ----- ----- Total paid............................... 0.2 0.3 1.1 ----- ----- ----- Net balance as of December 31............ 0.6 0.8 0.9 Plus reinsurance reserve credit and recoverable. 42.3 47.2 51.2 ----- ----- ----- Balance as of December 31....................... $42.9 $48.0 $52.1 ===== ===== =====

F-43 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Incurred claims related to prior years did not change by a significant amount in any year as a result of changes in estimates of insured events in prior years. For the years ended December 31, 2018, 2017 and 2016, the Company did not have any significant changes in methodologies or assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. The liability for policy and contract claims presented in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus also included $107.9 and $90.9 of life contract claims as of December 31, 2018 and 2017, respectively. (5)Transactions with Affiliates The Company and various affiliates, all direct and/or indirect subsidiaries of Genworth, are parties to an amended and restated services and shared expenses agreement under which each company agrees to provide and each company agrees to receive certain general services. These services include, but are not limited to, data processing, communications, marketing, public relations, advertising, investment management, human resources, accounting, actuarial, legal, administration of agent and agency matters, purchasing, underwriting and claims. Under the terms of the agreement, settlements are to be made quarterly. This agreement represents the principal administrative service agreement between the Company and the following affiliates: GLIC GNA Genworth Mortgage Insurance Corporation ("GMIC") JLIC RLIC VI RLIC VII RLIC VIII RLIC IX RLIC X Rivermont For years ended December 31, 2018, 2017 and 2016, the Company made net payments for intercompany settlements of $64.2, $44.7 and $72.4, respectively. The Company and GLICNY are parties to an Administrative Services Agreement whereby the Company provides services to GLICNY with respect to GLICNY's variable annuity products. The Company and GLIC are parties to a Master Services and Shared Expenses Agreement with two affiliates, Genworth Financial India Private, Ltd. and GMIC, whereby the parties agree to benefit from centralized functions and processes by pooling their purchasing power by entering separate Statements of Work which will provide the specifics of each service to be provided. The Company has a Master Promissory Note agreement, approved by the Virginia Bureau, which involves borrowing from and making loans to GNA, the Company's indirect parent. The principal is payable upon written demand by GNA or at the discretion of the Company. The note pays interest at the cost of funds of GNA, which was 2.33%, 1.33% and 0.28% during the years ended December 31, 2018, 2017 and 2016, respectively. There were no outstanding balances payable to or due from GNA as of December 31, 2018 or 2017. The Company participates in reinsurance agreements whereby the Company assumes business from or cedes business to its affiliates. See Note 8 for further details on affiliate reinsurance agreements. During 2018, the Company recorded an F-44 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) adjustment for the administration of claims related to certain reinsurance agreements whereby the assuming reinsurer was only settling the net amount at risk instead of the full death benefit on universal life insurance contracts. The net impact to the Company's death benefits was $4.0 for years ended December 31, 2017 and prior. This impacted reinsurance agreements between the Company and Rivermont, JLIC, and GLIC as follows: . The Company cedes universal life insurance contracts to Rivermont. As a result of this adjustment, Rivermont owed the Company $27.5 for years ended December 31, 2017 and prior. Effective March 30, 2018, the Company, as counterparty to the reinsurance agreement and parent of Rivermont, agreed to not require payment of this amount from Rivermont. This was accounted for as a deemed capital contribution from the Company to Rivermont which was recorded as a decrease to the Company's unassigned surplus. . The Company also cedes universal life insurance contracts to JLIC. As a result of this adjustment, JLIC owed the Company $4.3 for years ended December 31, 2017 and prior. The Company received this amount on May 11, 2018. . The Company assumes universal life insurance contracts from GLIC. As a result of this adjustment, the Company owed GLIC $27.8 for years ended December 31, 2017 and prior. The Company paid this amount on May 11, 2018. Effective July 1, 2017, the Company assumed certain annuity and corporate-owned life insurance business from GLIC in anticipation of the GLAIC unstacking. These reinsurance treaties had an adverse impact on the RBC ratio of the Company and GLIC. The Company and GLIC had anticipated that the GLAIC unstacking would be completed by December 31, 2017 and that certain capital benefits relating to the unstacking would offset the adverse impact to its RBC ratio as of December 31, 2017. With the GLAIC unstacking not being completed by the end of 2017, the Company and GLIC mutually agreed to terminate the July 1, 2017 reinsurance treaties. As of December 31, 2017, the Company had a net receivable of $29.8 from GLIC related to the termination of these treaties. The intercompany amounts were settled in cash on January 10, 2018. As discussed in Note 1, Genworth and China Oceanwide have agreed to forgo the GLAIC unstacking and that provision was waived under the Merger Agreement. Genworth and China Oceanwide will not pursue the GLAIC unstacking for the foreseeable future. On December 21, 2017, the Company received $9.0 in cash from RLIC IX as a dividend payment. On December 14, 2017, the Company received $27.2 in cash from RLIC VI as a dividend payment. On December 13, 2017, the Company received $30.7 in cash from RLIC X as a return of capital. On June 26, 2017, the Company sold one security with a book value of $7.1 to GMIC in exchange for cash. In April 2017, the Company received bonds and mortgage loans from GLIC under various reinsurance transactions discussed in Note 8. During the year ended December 31, 2016, the Company sold 83 securities with book value of $273.1 and accrued interest of $3.0 to GLIC in exchange for cash. For the year ended December 31, 2016, the Company received cash from GNWLAAC RE of $3.4 as a return of capital. On December 9, 2016, the Company paid $4.7 in cash to RLIC VI as a capital contribution to meet minimum initial capitalization. On October 4, 2016, the Company received cash from RLIC IV of $0.3 as a return of capital. On September 29, 2016, the Company received cash from RLIC IV of $50.4 as a dividend payment and $15.2 as a return of capital prior to RLIC IV dissolution. F-45 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) On September 28, 2016, the Company received $30.0 in cash from RLIC X as a dividend payment. On July 15, 2016, the Company paid $174.2 in cash to Genworth Holdings as tax benefit settlement due to RLIC and RLIC II dissolution. During the second quarter of 2016, Special Purpose Vehicle ("SPV") 1 was unwound. In connection with the unwinding of SPV 1, the Company paid $38.9 to repurchase contract loans from SPV 1. SPV 1, 2, 3 and 5 were all dissolved on December 12, 2016. On April 20, 2016, the Company received cash of $35.0 and $47.0 as a return of capital from RLIC and RLIC II, respectively, which were dissolved on April 1, 2016. On April 15, 2016, the Company paid GNA $36.0 for a settlement related to the tax assumption agreement. The payment was recorded in paid in surplus. On April 8, 2016, the Company received $100.9 in cash as contributed surplus from RLIC VII. Effective March 21, 2016, the Company terminated its irrevocable LoCs with the Federal Home Loan Bank ("FHLB") of Atlanta ("FHLB Atlanta") for $329.0 and $225.6 held for RLIC and RLIC II, respectively. During 2016, the Company paid $2.2 in cash as capital contributions to RLIC X. Total amounts due from or owed to affiliates as of December 31, 2018 and 2017 are included in the following balance sheet captions:

2018 2017 ------ ------ Assets: Amounts recoverable from reinsurers and funds held............... $410.8 $410.7 Receivable from parent, subsidiaries and affiliates.............. -- 30.5 Current Federal and foreign income tax recoverable and interest thereon........................................................ 24.9 0.8 ------ ------ Total assets................................................. $435.7 $442.0 ====== ====== Liabilities: Current Federal income tax payable............................... $ -- $ 6.6 Payable to parent, subsidiaries and affiliates................... 4.6 -- Other amounts payable on reinsurance............................. 28.3 29.3 ------ ------ Total liabilities............................................ $ 32.9 $ 35.9 ====== ======

(6)Income Taxes Tax reform impact On December 22, 2017, President Trump signed the TCJA into law. The enactment of the new law signified the first major overhaul of the U.S. federal income tax system in more than 30 years. In addition to the law's corporate income tax rate reduction, several other provisions were pertinent to the Company's financial statements and related disclosures. Prior to the TCJA, the top U.S. corporate income tax rate was 35% for corporations with taxable income greater than $10.0. The TCJA reduced the U.S. corporate income tax rate to 21% effective for taxable years beginning after December 31, 2017. F-46 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) For items under the TCJA that were incomplete, but a reasonable estimate had been determined as of December 31, 2017, the Company recorded a reasonable estimate. For items for which a reasonable estimate could not be determined, the Company applied existing guidance based on the provisions of the tax laws that were in effect prior to the TCJA being enacted. Accordingly, the Company recorded reasonable estimates of the tax rate reduction impact under the TCJA for DTA and DTL as well as an insurance reserve transition adjustment in its 2017 statutory financial statements. As of December 31, 2017, the Company remeasured certain DTAs and DTLs based on the federal rate at which it expects them to reverse in the future, which is generally 21%. The provisional amount recorded in 2017 that related to the re-measurement of the Company's DTAs and DTLs was a tax expense of $222.0. The change in contingent tax liability related to the special tax sharing agreements was $220.3, which related to the re-measurement for the period ended December 31, 2018. The Company did not record an adjustment to this provisional amount in 2018 and the accounting for this item is complete as of December 31, 2018. As of December 31, 2017, the Company also recorded a provisional reclassification in DTAs and DTLs in the net amount of $65.2 related to the transition adjustment required under the TCJA with respect to life insurance policyholder reserves. Under the TCJA this transition adjustment is to be taken into account ratably over eight taxable years. The Company recorded an adjustment to the provisional reclassification of $24.5 in 2018 and the accounting for this item is complete as of December 31, 2018. (a) Components of deferred tax assets and deferred tax liabilities 1. The components of the net DTA recognized in the Company's Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus as of December 31, 2018 and 2017 were as follows:

2018 2017 Change ----------------------- ----------------------- ----------------------- Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total -------- ------- ------ -------- ------- ------ -------- ------- ------ a. Gross DTA............. $519.1 $27.1 $546.2 $544.6 $23.7 $568.3 $(25.5) $3.4 $(22.1) b. Statutory valuation allowance adjustment... -- -- -- 7.4 -- 7.4 (7.4) -- (7.4) ------ ----- ------ ------ ----- ------ ------ ---- ------ c. Adjusted gross DTA (1a - 1b).............. 519.1 27.1 546.2 537.2 23.7 560.9 (18.1) 3.4 (14.7) d. DTA nonadmitted....... 206.9 -- 206.9 217.5 -- 217.5 (10.6) -- (10.6) ------ ----- ------ ------ ----- ------ ------ ---- ------ e. Subtotal: net admitted DTA (1c - 1d). 312.2 27.1 339.3 319.7 23.7 343.4 (7.5) 3.4 (4.1) f. DTL................... 163.3 22.7 186.0 212.6 21.0 233.6 (49.3) 1.7 (47.6) ------ ----- ------ ------ ----- ------ ------ ---- ------ g. Net admitted DTA/(DTL) (1e - 1f).... $148.9 $ 4.4 $153.3 $107.1 $ 2.7 $109.8 $ 41.8 $1.7 $ 43.5 ====== ===== ====== ====== ===== ====== ====== ==== ======

F-47 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) 2. Admission calculation components for SSAP No. 101 as of December 31, 2018 and 2017:

2018 2017 Change ----------------------- ----------------------- ----------------------- Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total -------- ------- ------ -------- ------- ------ -------- ------- ------ a. Federal income taxes paid in prior years recoverable through loss carrybacks......... $ -- $ 4.0 $ 4.0 $ -- $ -- $ -- $ -- $ 4.0 $ 4.0 b. Adjusted gross DTA expected to be realized (excluding the amount of DTA from 2(a) above) after application of the threshold limitation. (The lessor of 2(b)1 and 2(b)2 below)........ 145.5 3.8 149.3 102.2 7.6 109.8 43.3 (3.8) 39.5 1. Adjusted gross DTA expected to be realized following the balance sheet date................. 145.5 3.8 149.3 102.2 7.6 109.8 43.3 (3.8) 39.5 2. Adjusted gross DTA allowed per limitation threshold. XXX XXX 150.1 XXX XXX 176.8 XXX XXX (26.7) c. Adjusted gross DTA (excluding the amount of DTA from 2(a) and 2(b) above) offset by gross DTL............... 166.7 19.3 186.0 217.5 16.1 233.6 (50.8) 3.2 (47.6) ------ ----- ------ ------ ----- ------ ------ ----- ------ d. DTA admitted as a result of the application of SSAP No. 101 (Total 2(a) + 2(b) + 2(c))............ $312.2 $27.1 $339.3 $319.7 $23.7 $343.4 $ (7.5) $ 3.4 $ (4.1) ====== ===== ====== ====== ===== ====== ====== ===== ======

3. Ratio used to determine applicable period used in 6(a)2:

2018 2017 -------- -------- a. Ratio percentage used to determine recovery period and threshold limitation amount.................................................. 741% 787% b. Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above..................... $1,090.1 $1,292.7

4. Impact of tax planning strategies: a. Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by character as a percentage:

2018 2017 Change --------------- --------------- --------------- Ordinary Capital Ordinary Capital Ordinary Capital -------- ------- -------- ------- -------- ------- 1. Adjusted Gross DTAs Amount from Note 6a1(c) $519.1 $27.1 $537.2 $23.7 $(18.1) $3.4 2. Percentage of Adjusted Gross DTAs by Tax Character Attribute to the impact of Tax Planning Strategies............. --% --% --% --% --% --% 3. Net Admitted Adjusted Gross DTAs Amount from Note 6a1(e)............ $312.2 $27.1 $319.7 $23.7 $ (7.5) $3.4 4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character admitted because of the impact of tax planning strategies............. 2.3% --% 0.8% --% 1.5% --%

F-48 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) b. The Company did not use reinsurance tax planning strategies for the years ended December 31, 2018, 2017 and 2016. (b) Unrecognized deferred tax liabilities The Company did not have any unrecognized DTLs during the years ended December 31, 2018, 2017 and 2016. (c) Current income tax and change in deferred tax The provision for income taxes incurred on operations for the years ended December 31, 2018, 2017 and 2016 were as follows:

2018 2017 Change ------ ------ ------ 1. Current Income Taxes a. Federal income taxes............................. $(18.8) $ 51.9 $(70.7) b. Foreign income taxes............................. -- -- -- ------ ------ ------ c. Federal and foreign income taxes................. (18.8) 51.9 (70.7) d. Federal income tax on net capital gains (losses). (1.6) (2.2) 0.6 e. Utilization of capital loss carry forwards....... -- -- -- f. Other............................................ -- -- -- ------ ------ ------ g. Federal and foreign income tax incurred.......... $(20.4) $ 49.7 $(70.1) ====== ====== ====== 2017 2016 Change ------ ------ ------ 1. Current Income Taxes a. Federal income taxes............................. $ 51.9 $120.4 $(68.5) b. Foreign income taxes............................. -- -- -- ------ ------ ------ c. Federal and foreign income taxes................. 51.9 120.4 (68.5) d. Federal income tax on net capital gains (losses). (2.2) 7.4 (9.6) e. Utilization of capital loss carry forwards....... -- -- -- f. Other............................................ -- -- -- ------ ------ ------ g. Federal and foreign income tax incurred.......... $ 49.7 $127.8 $(78.1) ====== ====== ======

F-49 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The tax effects of temporary differences that give rise to significant portions of the DTAs and DTLs were as follows as of December 31, 2018 and 2017:

2018 2017 Change ------ ------ ------ 2. DTA A. Ordinary 1. Discounting of unpaid losses........................................... $ -- $ -- $ -- 2. Unearned premium reserve............................................... -- -- -- 3a. Transition reserves................................................... 15.8 32.8 (17.0) 3b. Policyholder reserves................................................. 356.1 370.9 (14.8) 4. Investments............................................................ 3.3 2.1 1.2 5. Deferred acquisition costs............................................. 128.4 126.0 2.4 6. Policyholder dividends accrual......................................... -- -- -- 7. Fixed assets........................................................... 0.9 0.8 0.1 8. Compensation and benefits accrual...................................... -- -- -- 9. Pension accrual........................................................ -- -- -- 10. Receivable-nonadmitted................................................ 0.1 0.1 -- 11. Net operating loss carry forward...................................... 13.9 7.4 6.5 12. Tax credit carry forward.............................................. 0.4 1.6 (1.2) 13. Other (including items less than 5% of total ordinary tax assets)..... 0.2 2.9 (2.7) ------ ------ ------ 99. Subtotal ordinary..................................................... 519.1 544.6 (25.5) B. Statutory valuation allowance adjustment................................... -- 7.4 (7.4) C. Nonadmitted DTA............................................................ 206.9 217.5 (10.6) ------ ------ ------ D. Admitted ordinary DTA (2A99 - 2B - 2C)..................................... 312.2 319.7 (7.5) E. Capital.................................................................... -- 1. Investments............................................................ 27.1 23.7 3.4 2. Net capital loss carry forward......................................... -- -- -- 3. Real estate............................................................ -- -- -- 4. Other (including items less than 5% of total ordinary tax assets)...... -- -- -- ------ ------ ------ 99. Subtotal capital...................................................... 27.1 23.7 3.4 F. Statutory valuation allowance adjustment................................... -- -- -- G. Nonadmitted DTA............................................................ -- -- -- ------ ------ ------ H. Admitted capital DTA (2E99 - 2F - 2G)...................................... 27.1 23.7 3.4 ------ ------ ------ I. Admitted DTA (2D + 2H)..................................................... $339.3 $343.4 $ (4.1) ====== ====== ======

F-50 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2018 2017 Change ------ ------ ------ 3. DTL A. Ordinary 1. Investments........................... $ 8.3 $ 9.4 $ (1.1) 2. Fixed assets.......................... -- -- -- 3. Deferred and uncollected premiums..... 103.5 105.2 (1.7) 4(a). Transition reserves................ 51.5 98.0 (46.5) 4(b). Policyholder reserves.............. -- -- -- 5. Other................................. -- -- -- ------ ------ ------ 99. Subtotal ordinary.................... 163.3 212.6 (49.3) ------ ------ ------ B. Capital 1. Investments........................... 22.7 21.0 1.7 2. Real estate........................... -- -- -- 3. Other................................. -- -- -- ------ ------ ------ 99. Subtotal capital..................... 22.7 21.0 1.7 ------ ------ ------ C. DTL (3A99 + 3B99)......................... 186.0 233.6 (47.6) ------ ------ ------ 4. Net DTA (DTL) (2I - 3C)...................... $153.3 $109.8 $ 43.5 ====== ====== ======

Based on an analysis of the Company's tax position for the year ended December 31, 2018, management concluded it is more likely than not that the results of future operations will generate sufficient taxable income to enable the Company to realize all of its DTAs. Accordingly, no valuation allowance for DTA has been established. The change in net deferred taxes is comprised of the following (this analysis is exclusive of nonadmitted assets, as the change in nonadmitted assets is reported separately from the change in net deferred income taxes in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus):

December 31, ------------- 2018 2017 Change ------ ------ ------ Total gross DTA................................................. $546.2 $568.3 $(22.1) Statutory valuation allowance adjustment........................ -- 7.4 (7.4) ------ ------ ------ Adjusted gross DTAs............................................. 546.2 560.9 (14.7) Total gross DTL................................................. 186.0 233.6 (47.6) ------ ------ ------ Net DTA (DTL)................................................... $360.2 $327.3 32.9 ====== ====== Deferred tax on change in net unrealized capital gains (losses). 1.1 ------ Change in net deferred income tax............................... $ 34.0 ======

F-51 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (d) Reconciliation of Federal income tax rate to actual effective tax rate The provision for Federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory Federal income tax rate to income before income taxes. The significant items causing this difference were as follows for the years ended December 31, 2018, 2017 and 2016:

2018 2017 2016 ------ ------ ------ Provision computed at statutory tax rate.............................. $(50.7) $ 9.0 $(58.1) Benefit of dividends.................................................. (2.8) (19.7) (36.6) Other nondeductible expenses.......................................... -- -- 0.1 Change in tax contingency reserve..................................... 0.4 3.0 -- Statutory amortization of IMR......................................... -- (1.2) 6.7 Foreign taxes......................................................... -- (0.1) (0.1) Current year change in nonadmitted assets............................. 0.5 1.9 2.1 Deferred reinsurance gains............................................ 8.4 (13.8) 24.1 Statutory DTA valuation allowance adjustment.......................... (7.4) (5.9) -- Adjustments to prior year taxes....................................... (2.7) 7.5 (8.5) TCJA rate reduction impact............................................ -- 222.0 -- Other adjustments..................................................... (0.1) (24.9) 407.6 ------ ------ ------ Total.............................................................. $(54.4) $177.8 $337.3 ====== ====== ====== Federal and foreign income tax incurred............................... $(20.4) $ 49.7 $127.8 Change in net deferred income taxes (without change in net unrealized capital gains (losses))............................................. (34.0) 128.1 209.5 ------ ------ ------ Total.............................................................. $(54.4) $177.8 $337.3 ====== ====== ======

(e) Operating loss and tax credit carry forwards and protective tax deposits As of December 31, 2018, the Company has operating loss carryforwards that will not expire, as follows:

Origination year Amount without expiration ---------------- ------------------------- 2018 $66.1

As of December 31, 2018, the Company has tax credits to carry forward that will expire, if unutilized, as follows:

Origination year Amount Expires after ---------------- ------ ------------- 2014 $0.2 2024 2015 0.2 2025

As of December 31, 2018, the amount of federal income taxes incurred in the current and prior years that will be available for recoupment in the event of future net losses are as follows:

Tax year Capital Ordinary -------- ------- -------- 2016 $7.6 $--

The Company has no protective tax deposits which are on deposit with the IRS under Section 6603 of the Internal Revenue Code. F-52 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (f) Consolidated Federal income tax return The Company is an affiliated member of a consolidated Life/Non-Life U.S. Federal income tax return with its ultimate parent company, Genworth, and will be included with the following companies in the consolidated Federal income tax return for 2018: ASI Capital Brokerage Corporation Genworth Genworth Annuity Service Corporation Genworth Financial Agency, Inc. Genworth Financial Assurance Corporation Genworth Financial Services, Inc. Genworth Holdings Genworth Insurance Company GLIC GLICNY Genworth Mortgage Holdings, LLC Genworth Mortgage Holdings, Inc. GMIC Genworth Mortgage Insurance Corporation of North Carolina Genworth Mortgage Reinsurance Corporation Genworth Mortgage Services, LLC GNA HGI Annuity Service Corporation JLIC Mayflower Assignment Corporation Monument Lane IC 1, Inc. Monument Lane IC 2, Inc. Monument Lane PCC, Inc. Newco National Eldercare Referral System, LLC Rivermont RLIC VI RLIC VII RLIC VIII RLIC IX RLIC X River Lake Insurance Company XI Sponsored Captive Re, Inc. United Pacific Structured Settlement Company The Company is a part of the overall Tax Allocation Agreement between Genworth and certain of its subsidiaries. This agreement was approved by state insurance regulators and the Company's Board of Directors. The tax allocation is based on the separate return liabilities with offsets for losses and credits utilized to reduce the current consolidated tax liability as allowed by applicable law and regulation. The Company's policy is to settle intercompany tax balances quarterly, with a final settlement after filing of Genworth's Federal consolidated U.S. corporation income tax return. The Company and its indirect parent, Genworth, have special tax agreements with the Company's direct subsidiaries RLIC VII and RLIC VIII. The agreements obligate the Company to receive or make payments on behalf of RLIC VII and F-53 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) RLIC VIII for Federal income tax amounts receivable or payable by RLIC VII and RLIC VIII under a separate Tax Allocation Agreement. The Company accounts for these payments as additional investment in common stock of affiliates. As of December 31, 2018, the Company has recorded a tax receivable and a decrease in investment in common stock of affiliates of $2.4 for RLIC VII and a tax payable and an increase in investment in common stock of affiliates of $0.4 for RLIC VIII related to these agreements. The Company and its direct parent, GLIC, are also parties to a separate special tax sharing agreement with the Company's direct subsidiary, Rivermont. The agreement allocates the tax benefit of Rivermont's net operating losses ("NOLs") from tax years prior to 2009 to the Company. The Company will repay such benefits to Genworth to the extent Rivermont has taxable income in the future. For NOLs incurred in 2009 and subsequent years, Rivermont will record a current tax benefit and receive tax benefit payments from Genworth for NOLs incurred by Rivermont and used by the consolidated tax group, in accordance with the terms of the Tax Allocation Agreement. Additionally, under this special tax sharing agreement, the Company is required to provide certain amounts of capital or a letter of credit to Rivermont upon the event that the Company or Genworth Holdings is downgraded below certain S&P and Moody's ratings levels. The Company secured an irrevocable Letter of Credit ("LoC") from FHLB Atlanta for $28.2 in favor of Rivermont to meet its obligations under these provisions. The LoC automatically renews annually through May 7, 2019, unless notice of termination is provided by the issuer of the LoC at least 60 days prior to the then applicable expiration date. Prior to 2018, the Company also had special tax sharing agreements (the "Old Special Tax Agreements") with its direct subsidiaries, RLIC VI, RLIC IX and RLIC X. The Old Special Tax Agreements allocated to the Company the tax benefits of the respective subsidiaries' (i.e., RLIC VI, RLIC IX or RLIC X, as appropriate) current NOLs. Such benefits would have been repaid to Genworth to the extent the subsidiaries had taxable income in the future. Until such time as these benefits had been fully repaid, each subsidiary was not obligated to make payments under the overall tax allocation agreement or applicable Old Special Tax Agreement for Federal income tax. Additionally, under the Old Special Tax Agreements with RLIC VI, RLIC IX and RLIC X, the Company would have assumed the respective subsidiaries tax liability if such liability would cause the Company's RBC ratio to fall below 300%. The Old Special Tax Agreements were terminated effective May 31, 2018 for RLIC VI and January 1, 2018 for RLIC IX and RLIC X. In 2018, the Company entered into new special tax sharing agreements (the "New Special Tax Sharing Agreements") with RLIC VI, RLIC IX and RLIC X and its indirect parent, Genworth, effective June 1, 2018 for RLIC VI and January 1, 2018 for RLIC IX and RLIC X. Under the New Special Tax Sharing Agreements, the Company is obligated to receive or make payments on behalf of RLIC VI, RLIC IX and RLIC X for Federal income tax amounts receivable or payable by those companies pursuant to the Tax Allocation Agreement. The tax payments made by the Company on behalf of RLIC VI, RLIC IX and RLIC X are accounted for as deemed capital contributions to RLIC VI, RLIC IX and RLIC X. The tax payments received by the Company on behalf of RLIC VI, RLIC IX and RLIC X are accounted for as deemed dividends from RLIC VI, RLIC IX and RLIC X. During 2018, the Company recorded tax payables and an increase in common stock of affiliates of $22.5, $33.9 and $44.9 to RLIC VI, RLIC IX and RLIC X, respectively, related to the New Special Tax Sharing Agreements. As discussed in Note 2(b), the Company carries RLIC VI, RLIC IX and RLIC X at zero; therefore, the change in common stock of affiliates ultimately impacts unassigned surplus. Effective January 1, 2018, the Company entered into a new Special Tax Allocation Agreement with Genworth whereby the Company agreed to settle intercompany taxes under the terms of the overall Tax Allocation Agreement of the Genworth Consolidated Group as if the Company and RLIC VI, RLIC IX and RLIC X continued to calculate tax reserves under Model Regulation 830 for U.S. federal income tax purposes, notwithstanding that the consolidated group filed its U.S. federal income tax return limiting the tax reserve based upon the Net GAAP Liability shown on the statutory annual statements of RLIC VI, RLIC IX and RLIC X. The purpose of the new Special Tax Allocation Agreement between the Company and Genworth is to defer intercompany tax settlements by the Company until the time at which the Company would have made the payments absent the change in the Permitted Practices for RLIC VI, RLIC IX and RLIC X and also absent tax planning strategies implemented by GLIC in 2018 with respect to the calculation of GLIC's tax reserves. During 2018, the Company recorded an increase to current tax receivable and an increase to unassigned surplus of $103.2 related to this agreement. F-54 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The cumulative benefit recognized by the Company through December 31, 2018 relating to the special tax sharing agreements with Rivermont, RLIC VI, RLIC IX, and RLIC X and the Special Tax Allocation Agreement with Genworth was $417.4 and $330.4 as of December 31, 2018 and 2017, respectively. Due to the nature of the agreements as described above, the Company could have to repay these benefits in the future. For tax years beginning in 2011, the Company was included in the Life/Non-Life consolidated return filed by Genworth and filed various state and local tax returns. With possible exceptions (including the possibility that the Internal Revenue Service ("IRS") may examine tax years that impact operating loss deduction carryforwards but are otherwise closed), the Company is no longer subject to U.S. Federal tax examinations for years through 2014. Potential state and local examinations for those years are generally restricted to results that are based on closed U.S. Federal examinations. (g) Federal or foreign income tax loss contingencies The total amount of unrecognized tax benefits was $7.2, $6.7 and $3.8 as of December 31, 2018, 2017 and 2016, respectively, of which $7.2, $6.7 and $3.8, respectively, if recognized, would affect the effective tax rate on operations. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. During the years ended December 31, 2018 and 2017, the Company accrued no interest or no penalties. The Company had no interest liability balance, and no penalty balances as of December 31, 2018 and 2017. As a result of Genworth's open audits and appeals, the Company believes no unrecognized tax benefits will be recognized in 2019. (h) Repatriation Transition Tax The Company had no Repatriation Transition Tax owed under the TCJA as of December 31, 2018. (i) Alternative Minimum Tax Credit The Company had no Alternative Minimum Tax Credit recognized as a current year recoverable or DTA as of December 31, 2018. (j) State transferable and non-transferable tax credits The carrying value of transferable and non-transferable state tax credits gross of any related tax liabilities and total unused transferable and non-transferable state tax credits by state and in total were as follows:

2018 --------------------- Carrying Unused Description of state transferable and non-transferable tax credits State value amount ------------------------------------------------------------------ ----- -------- ------ New Market................................. FL $0.7 $0.7 New Market................................. KY 0.1 0.1 New Market................................. MS 0.5 0.5 New Market................................. NE 0.3 0.3 New Market................................. NV 0.1 0.1 Renewable Energy........................... NC 0.1 0.1 Urban Development.......................... CT 0.2 0.2 Urban Development.......................... FL 1.3 1.3 ---- ---- Total................................... $3.3 $3.3 ==== ====

F-55 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 --------------------- Carrying Unused Description of state transferable and non-transferable tax credits State value amount ------------------------------------------------------------------ ----- -------- ------ Mills Credit............................... SC $0.1 $0.1 New Market................................. FL 0.7 0.7 New Market................................. KY 0.3 0.3 New Market................................. MS 0.4 0.4 New Market................................. NE 0.2 0.2 New Market................................. NV 0.1 0.1 Renewable Energy........................... NC 0.1 0.1 Urban Development.......................... CT 0.2 0.2 Urban Development.......................... FL 1.0 1.0 ---- ---- Total................................... $3.1 $3.1 ==== ====

The Company estimated the utilization of the remaining transferable and non-transferable state tax credits by projecting future premium taking into account policy growth and rate changes, projected future tax liability based on projected premiums, tax rates and tax credits, and comparing projected future tax liability to the availability of remaining transferable and non-transferable tax credits. The Company had no impairment loss related to the write-down as a result of impairment analysis of the carrying amount for state transferable and non-transferable tax credits during 2018 and 2017. The state tax credits admitted and nonadmitted were as follows:

2018 2017 -------------------- -------------------- Total Total Total Total admitted nonadmitted admitted nonadmitted -------- ----------- -------- ----------- Transferable..... $ -- $-- $ -- $-- Non-transferable. 3.3 -- 3.1 -- ---- --- ---- --- Total......... $3.3 $-- $3.1 $-- ==== === ==== ===

(7)Commitments and Contingencies (a) Litigation The Company is a defendant in various cases of litigation considered to be in the normal course of business. The Company does not consider existing contingent liabilities arising from litigation, income taxes and other matters to be material in relation to the financial position of the Company. In September 2018, the Company was named as a defendant in a putative class action lawsuit pending in the United States District Court for the Eastern District of Virginia captioned TVPX ARX INC., as Securities Intermediary for Consolidated Wealth Management, LTD. on behalf of itself and all others similarly situated v. Genworth Life and Annuity Insurance Company. The Plaintiff is alleging unlawful and excessive cost of insurance ("COI") charges were imposed on policyholders. The complaint asserts claims for breach of contract, alleging that the Company improperly considered non-mortality factors when calculating COI rates and failed to decrease COI charges in light of improved expectations of future mortality, and seeks unspecified compensatory damages, costs, and equitable relief. On October 29, 2018, the Company filed a motion to enforce in the Middle District of Georgia, and a motion to dismiss and motion to stay in the Eastern District of Virginia. The Company moved to enjoin the prosecution of the Eastern District of Virginia action on the F-56 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) basis that it involves claims released in a prior nationwide class action settlement that was approved by the Middle District of Georgia. Plaintiff filed an amended complaint on November 13, 2018. On November 16, 2018, the Eastern District of Virginia court stayed the case for 60 days. On December 6, 2018, the Company moved the Middle District of Georgia for leave to file our counterclaim, which alleges that Plaintiff breached the prior settlement agreement by filing its current action. A hearing on the Company's motion to enjoin and motion for leave to file its counterclaim occurred on February 21, 2019. On March 15, 2019, the Middle District of Georgia granted the Company's motion to enjoin and denied its motion for leave to file its counterclaim. As such, the Plaintiff is enjoined from pursuing COI class action in the Eastern District of Virginia. On March 29, 2019, the Plaintiff filed a Notice of Appeal in the Middle District of Georgia, notifying the court of its appeal to the United States Court of Appeals for the Eleventh Circuit from the order granting the Company's motion to enjoin. On March 29, 2019, the Company filed its Notice of Cross-Appeal in the Middle District of Georgia, notifying the court of its cross-appeal to the Eleventh Circuit from the portion of the order denying its motion for leave to file the Company's counterclaim. On April 8, 2019, the Eastern District of Virginia lifted the stay in the case and dismissed the case without prejudice, with leave for the Plaintiff to refile an amended complaint only if a final appellate court decision vacates the injunction and reverses the Middle District of Georgia's opinion. The Company intends to continue to vigorously defend this action. In Lehman Brothers Special Financing, Inc. v. Bank of America National Association, et. al, in U.S. Bankruptcy Court, Southern district of New York, Lehman Brothers Special Financing, Inc. ("LBSF") seeks to recover from the Company, as a noteholder defendant, sums it received from a collateralized debt obligation ("CDO") note following the bankruptcy of Lehman Brothers Holdings, Inc. ("LBHI"), alleging that the Company and other unrelated noteholders (the "Defendant Group") not entitled to the amounts received. On June 28, 2016, the court granted the Company's motion to dismiss. The court's order became final and appealable on January 24, 2017. LBSF filed a notice of appeal to the United States Court of Appeals for the Second Circuit on February 6, 2017. The Company intends to vigorously defend the dismissal of the action. The Company and its affiliates have been subject to a number of industry wide regulatory investigations concerning unclaimed property practices and escheatment practices. The West Virginia treasurer's office had initiated a lawsuit with respect to unclaimed property relating to West Virginia policies, in which the Company is a defendant. The defendants in that case made a motion to dismiss the complaint in its entirety, which was granted in December 2013. The West Virginia treasurer's office appealed that dismissal and in June 2015 the West Virginia Supreme court reversed the dismissal and remanded the case back to the trial court to, among other things, permit the Treasurer to examine insurers for compliance with unclaimed property laws. The Company and GLIC elected to participate in the early alternative dispute resolution procedure outlined in the trial court's post-remand case management order and a first meeting to mediate the matter was held on February 1, 2017. Also, the Company is currently being examined by Delaware's Department of Finance, which has retained a third-party audit firm, Kelmar Associates, LLC, to examine the Company. On November 16, 2017, the Company notified Delaware of its intention to convert the audit to a review under the Secretary of State Unclaimed Property Voluntary Disclosure Agreement Program. Delaware authorized this conversion request on December 5, 2017. The Company continues to cooperate with respect to these reviews, exams and investigations as appropriate. As of December 31, 2018, the Company could not determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above. In light of the inherent uncertainties involved in these matters, no amounts have been accrued. The Company is not able to provide an estimate or range of possible losses related to these matters. (b) Guaranty Association Assessments The Company is required by law to participate in the guaranty fund associations of the various states in which it is licensed to do business. The state guaranty associations ensure payment of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies operating in similar lines of business. F-57 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) As of December 31, 2018 and 2017, the Company has accrued and recognized through net operations a liability for retrospective premium-based guaranty fund assessments of $7.3 and $7.7, respectively, and a related premium tax benefit asset of $7.4 and $8.0, respectively. These amounts represent management's best estimate based on information received from the states in which the Company writes business and may change due to many factors including the Company's share of the ultimate cost of current insolvencies. The premium tax benefit is generally realized over a five year period, but can vary depending on the state law. The following table provides information about the Company's guaranty funds receivable as of December 31, 2018 and 2017:

2018 2017 ---- ---- Assets recognized from paid and accrued premium tax offsets and policy surcharges prior year end............................................ $8.0 $6.9 Decreases current year: Premium tax offset applied...................................... 0.5 0.6 Other adjustment................................................ 0.1 -- True up adjustment.............................................. 0.5 -- Increases current year: Cash payment adjustment......................................... 0.5 0.9 True up adjustment.............................................. -- 0.8 ---- ---- Assets recognized from paid and accrued premium tax offsets and policy surcharges current year end.......................................... $7.4 $8.0 ==== ====

The following tables provide information about the Company's undiscounted and discounted amount of the guaranty fund assessments and related assets by insolvency as of December 31, 2018 and 2017:

2018 ---------------------------------------------------------------------------------------------- Guaranty fund assessment Related assets ----------------------- ----------------------- Name of the Insolvency Undiscounted Discounted Undiscounted Discounted ---------------------- ------------ ---------- ------------ ---------- American Network Insurance Company............ $0.4 $-- $0.2 $-- Penn Treaty Network Company America Insurance Company..................................... 0.4 -- 0.4 -- ---- --- ---- --- Total......................................... $0.8 $-- $0.6 $-- ==== === ==== ===

2017 ---------------------------------------------------------------------------------------------- Guaranty fund assessment Related assets ----------------------- ----------------------- Name of the Insolvency Undiscounted Discounted Undiscounted Discounted ---------------------- ------------ ---------- ------------ ---------- American Network Insurance Company............ $0.4 $-- $0.2 $-- Penn Treaty Network Company America Insurance Company..................................... 0.3 -- 0.2 -- ---- --- ---- --- Total......................................... $0.7 $-- $0.4 $-- ==== === ==== ===

In 2009, the Pennsylvania Insurance Commissioner (the "Commissioner") placed long-term care insurer Penn Treaty Network Company America Insurance Company and one of its subsidiaries, American Network Insurance Company (collectively, "Penn Treaty") in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. On November 9, 2016, the state court held a hearing on the F-58 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Commissioner's petition to convert the rehabilitation into liquidation with no objections. On March 1, 2017, the Pennsylvania Commonwealth court approved petitions to liquidate Penn Treaty due to financial difficulties that could not be resolved through rehabilitation. As a result, the Company accrued guaranty fund liabilities of $0.9 in 2017 related to Penn Treaty. The Company recorded a pre-tax impact of $0.3, net of premium tax credits, in 2017 related to Penn Treaty. The amounts shown in the charts above in the guaranty fund assessments column represent the assessments paid to guaranty associations and the amounts shown in the related assets column are the premium tax credit available. (c) Related Party Guarantees The Company has guaranteed the structured settlement payment obligations of ASI, provided that such obligations are funded with the Company's annuity contracts. ASI is a direct, wholly-owned subsidiary of the Company and the assignment company for the Company's structured settlement business. There are no current obligations by the Company under the guarantee nor does the Company expect to make any future payments. However, if any payments were to be made they would be treated as a capital contribution. The maximum amount of payments that could be made under the guarantee is equal to the structured settlement payment obligations of ASI. The structured settlement reserves related to this guarantee were $239.2 as of December 31, 2018. The guarantee will remain intact until modified or rescinded by the Company's board of directors. (d) Commitments As of December 31, 2018, the Company had future commitments of $5.5 on its investments in limited partnerships, $4.1 in commercial mortgage loans and $6.0 in private placement securities. These limited partnerships are part of the Company's private equity and real estate programs. The funding commitments relate to future equity stakes taken in portfolio of private companies, first mortgage loans and mezzanine debt. (8)Reinsurance The Company follows the standard industry practices of reinsuring portions of its risk with other companies. Use of reinsurance does not discharge the Company from liability on the insurance ceded. The Company is required to pay in full the amount of its insurance obligations regardless of whether it is entitled or able to receive payment from its reinsurer. The Company monitors both the financial condition of the reinsurers as well as risk concentrations arising from activities and economic characteristics of the reinsurers to lessen the risk of default by such reinsurers. As of December 31, 2018, all third-party reinsurers maintained an A.M. Best Company, Inc. ("A.M. Best") rating of "B+" or better or provide collateral as security, except Scottish Re US Inc. ("Scottish Re"), which is not rated and does not provide collateral. Total ceded reserves to Scottish Re were $24.7 as of December 31, 2018. In March 2019, A.M. Best withdrew its ratings of Union Fidelity Life Insurance Company ("UFLIC"), one of the Company's significant reinsurers as discussed below, and Employers Reassurance Corporation at the request of those companies. The Company does not expect any impact from this action and will continue to take reserve credit for reinsurance with these companies. In addition, UFLIC has a trust and guarantee from its parent as further discussed below. The maximum amounts of life insurance retained by the Company on any one life may not exceed the following limits: individual life, $5.0; accidental death benefit, $0.1; group life, $0.2; group mortgage accidental benefits, $0.1; and payroll deduction and 401(k) automatic issue coverage, $0.2. Amounts in excess of these maximums are reinsured with other insurance companies. F-59 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The effects of reinsurance on premiums earned and benefits incurred for the years ended December 31, 2018, 2017 and 2016 were as follows:

Premiums earned Benefits incurred ------------------------------- ------------------------------- 2018 2017 2016 2018 2017 2016 --------- --------- --------- --------- --------- --------- Direct.. $ 1,226.6 $ 1,295.6 $ 1,464.2 $ 2,251.4 $ 2,212.2 $ 2,135.6 Assumed. 299.0 350.5 350.8 261.3 241.9 219.4 Ceded... (1,519.2) (1,125.4) (4,171.6) (1,689.7) (1,575.8) (1,504.9) --------- --------- --------- --------- --------- --------- Net.. $ 6.4 $ 520.7 $(2,356.6) $ 823.0 $ 878.3 $ 850.1 ========= ========= ========= ========= ========= =========

The Company did not have any retrospectively rated contracts or contracts subject to redetermination. Affiliated Special Purpose Captives Reinsurance Transactions The Company has over the past years entered into significant reinsurance treaties with its subsidiaries to cede universal and term life insurance policies. Reserves ceded by the Company as of December 31, 2018 and 2017 related to these treaties were as follows:

2018 2017 -------- -------- Universal Life Insurance Business Rivermont......................... $ 441.2 $ 425.6 JLIC.............................. 60.8 58.5 Term Life Insurance Business RLIC VI........................... $ 808.0 $ 810.6 RLIC VII.......................... 577.7 633.8 RLIC VIII......................... 1,038.1 1,012.0 RLIC IX........................... 773.0 796.4 RLIC X............................ 744.4 661.0

Rivermont On October 24, 2006, the Company entered into an indemnity reinsurance agreement with Rivermont to cede certain universal life insurance reserves from the Company to Rivermont on a coinsurance and modified coinsurance ("Modco") basis for policies issued by or assumed from other affiliates of the Company with policy effective dates in calendar year 1999 and January 1, 2001 through June 30, 2006. On October 24, 2006, as a first part of the securitization of its excess AG38 (also known as AXXX) reserves, Rivermont sold $315.0 of surplus notes to fund the excess AXXX statutory reserves for the universal life insurance business that was assumed from the Company in the fourth quarter of 2006. Assets are held in a trust to the benefit of the Company as collateral. Genworth has entered into a liquidity commitment agreement with Rivermont and the capital market trusts that hold the surplus notes issued by Rivermont. The liquidity commitment agreement maintains that Genworth will, on the maturity date of the surplus notes (45 years from date of issue) loan to each capital market trust an amount equal to the then market value of assets held in the reinsurance trust. F-60 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Genworth Holdings has entered into a limited guaranty with Rivermont pursuant to which Genworth Holdings has guaranteed that Rivermont will receive a prescribed rate of return on the Modco reinsurance assets. The intent of the limited guaranty is to mitigate credit/interest rate risk within Rivermont and leave Rivermont with only insurance (mortality) risk. The Genworth Holdings limited guaranty provides Rivermont with the required liability payments in the event that there is a shortfall in Rivermont's ability to fund its interest obligations. The probability of a Genworth Holdings payment is remote and only occurs if cash flows from (a) actual earned interest income from economic reserve assets, (b) investment income on Modco Assets, and (c) calculated experience refunds from mortality gains, are insufficient to cover the liability payments. The value of the limited guaranty was $2.1 and $4.3 as of December 31, 2018 and 2017, respectively. On October 24, 2006, the Company entered into an agreement with MBIA, the financial guarantor, for the benefit of Rivermont. The agreement, among other things, obligates the Company (subject to certain exclusions) to indemnify and hold harmless Rivermont, MBIA, and Milliman from and against any and all claims, liabilities, losses, costs and expenses, and damages that may be incurred by or asserted against Rivermont, MBIA and Milliman by any party relating to or arising out of the transactions contemplated by the reinsurance agreement between the Company and Rivermont dated October 24, 2006, or certain related agreements, to the extent that such losses, claims, liabilities, expenses or damages resulted from Rivermont's failure to make any payment required to be made by it to any party under any such agreement, but excluding any payments of premiums, fees and expenses to be made in the ordinary course, and payments of principal and interest on the surplus notes issued by Rivermont. JLIC The Company has reinsurance agreements whereby it cedes universal life and term life insurance policies to JLIC. Effective January 1, 2016, the Company recaptured a 10% quota share for certain term life insurance policies, issued between January 1, 2001 and January 31, 2001, from JLIC with $57.3 in statutory reserves, receiving a recapture payment of $9.5 as consideration. RLIC VI Effective November 1, 2013, the Company entered into a coinsurance with funds withheld agreement with RLIC VI to cede term life insurance business to RLIC VI. RLIC VI simultaneously entered into a monthly renewable term ("MRT") reinsurance agreement with GLIC to cede the mortality risk on the reinsurance policies assumed from the Company. This MRT reinsurance agreement excluded those policies which were originally written by GLIC. At the same time, RLIC VI also entered into an XOL reinsurance agreement with the Company and Canada Life, which was approved by the Virginia Bureau as a form of security otherwise acceptable to the Commissioner in order for the Company to take reinsurance credit on its balance sheet for the amount of its reinsurance credits for reserves ceded to RLIC VI in an amount, subject to a cap, equal to the difference between the statutory reserves and the qualified reserves with respect to such business. Effective September 1, 2016, the Company amended and restated the existing coinsurance with funds withheld agreement with RLIC VI, the existing XOL reinsurance agreement treaty with Canada Life and RLIC VI, and the existing MRT reinsurance agreement with GLIC and RLIC VI to include substantially all of the term life insurance business recaptured from Brookfield Life and Annuity Insurance Company ("BLAIC"). As a result of this amendment, the Company ceded $229.9 of initial premiums, with an initial allowance of $165.5 to RLIC VI. The net consideration of $64.4 was withheld and recorded as funds withheld. Effective December 1, 2017, RLIC VI recaptured the MRT reinsurance agreement with GLIC and simultaneously entered into a new MRT reinsurance agreement with New Reinsurance Company Ltd ("NewRe") whereby it retrocedes 100% of the mortality risk assumed from the Company to NewRe. The coinsurance treaty between the Company and RLIC VI, as well as the XOL between the Company, RLIC VI, and Canada Life were amended to reflect the MRT reinsurance agreement change. F-61 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) During 2018 and 2017, under the terms of the coinsurance treaty with RLIC VI, the Company recaptured term life insurance policies from RLIC VI where the level term period of the policies had expired. Reserves held on recaptured policies were $2.4 and $0.2 at the beginning of the period of recapture for the years ended December 31, 2018 and 2017, respectively. RLIC VII On April 7, 2009, the Company and RLIC VII entered into an indemnity coinsurance agreement, effective January 1, 2009, to cede certain term life insurance business issued by the Company in 2002. Effective December 2, 2010, the reinsurance treaty with RLIC VII was amended to change the mode of reinsurance from coinsurance to a combination of coinsurance and coinsurance with funds withheld. RLIC VII collateralized its obligations under the reinsurance agreement through a combination of funds withheld, an unconditional trust and LoCs. The LoCs had a face amount of $639.0 and were issued by Goldman Sachs Bank USA for the benefit of the Company to collateralize non-economic reserves. The LoCs did not meet the requirements of an unconditional LoC under Virginia's credit for reinsurance requirements. However, the Virginia Bureau approved the LoCs as another form of acceptable collateral. On April 6, 2016, RLIC VII paid Goldman Sachs $2.0 in cash and terminated both LoCs. Effective April 1, 2016, the Company recaptured all previously ceded term life insurance business from RLIC VII. In connection with the recapture, the Company paid RLIC VII a net terminal payment of $19.0. The terminal payment consisted of a $147.7 recapture payment which was recorded as ceding commission income on reinsurance ceded, a final monthly account balance payment of $1.3 which decreased net reinsurance receivable, and a $165.4 terminal reserve adjustment which decreased funds held by or deposited with reinsured companies. Effective April 1, 2016, the Company entered into a new coinsurance agreement with funds withheld with RLIC VII to cede effectively the same term life insurance business which the Company previously recaptured from RLIC VII. As a result of this agreement, RLIC VII assumed $740.1 of initial premiums with an initial allowance of $562.2. The net consideration of $177.9 was withheld by the Company and deposited into a funds withheld account. RLIC VII also entered into a MRT reinsurance agreement with SCOR Global Life USA Reinsurance Company to retrocede 90% of the mortality risk on policies assumed from the Company. Effective April 1, 2016, the Company also entered into an XOL reinsurance agreement with SCOR Global Life SE and RLIC VII. As per this XOL reinsurance agreement, SCOR Global Life SE will pay claims up to the difference between full statutory reserves and qualified reserves, subject to a cap, if both the funds withheld account and RLIC VII's capital and surplus, as supported by settlements under the MRT reinsurance agreement, are exhausted. During 2017, under the terms of the coinsurance treaty with RLIC VII, the Company recaptured term life insurance policies from RLIC VII where the level term period of the policies had expired. Reserves ceded on recaptured policies were $2.6 at the beginning of the period of recapture. RLIC VIII On April 1, 2010, the Company entered into a reinsurance agreement with RLIC VIII to cede certain term life insurance business from the Company to RLIC VIII on a coinsurance with funds withheld basis for policies issued in the year 2006. Effective January 1, 2015, the Company recaptured previously ceded term life insurance business from RLIC VIII and entered into a new coinsurance with funds withheld agreement with RLIC VIII to cede effectively the same term life insurance business previously recaptured from RLIC VIII. F-62 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Effective January 1, 2015, RLIC VIII simultaneously entered into a MRT reinsurance agreement with SCOR Global Life USA Reinsurance Company to retrocede 90% of the mortality risk on the reinsurance policies assumed from the Company. Effective January 1, 2015, RLIC VIII also entered into an XOL reinsurance agreement with the Company and SCOR Global Life SE, which was approved by the Virginia Bureau as a form of security otherwise acceptable to the Commissioner in order for the Company to take reinsurance credit on its balance sheet for the amount of its reinsurance credits for reserves ceded to RLIC VIII in an amount equal to the difference between the statutory reserves and the qualified reserves with respect to such business. During 2017, under the terms of the coinsurance treaty with RLIC VIII, the Company recaptured term life insurance policies from RLIC VIII where the level term period of the policies had expired. Reserves ceded on recaptured policies were $2.1 at the beginning of the period of recapture. RLIC IX Effective October 1, 2012, the Company entered into a coinsurance with funds withheld agreement to cede certain term life insurance business to RLIC IX. Concurrently, RLIC IX entered into a MRT reinsurance agreement with Hannover Re (Ireland) Plc ("Hannover Ireland") to retrocede 100% of the mortality risk on the reinsured policies assumed from the Company to Hannover Ireland. Effective October 1, 2012, RLIC IX also entered into an XOL reinsurance agreement with the Company and BLAIC, which was approved by the Virginia Bureau as a form of security otherwise acceptable to the Commissioner in order for the Company to take reinsurance credit on its balance sheet for the amount of its reinsurance credits for reserves ceded to RLIC IX in an amount equal to the difference between the statutory reserves and the qualified reserves with respect to such business. Effective July 1, 2016, RL IX recaptured all of the risks ceded to BLAIC and terminated the XOL reinsurance agreement. Effective July 1, 2016, the Company entered into a new XOL reinsurance agreement with Canada Life and RLIC IX. As per this new XOL reinsurance agreement, Canada Life will pay claims up to the difference between full statutory reserves and qualified reserves subject to a cap, if both the funds withheld account and the RLIC IX capital and surplus, as supported by settlements under the MRT reinsurance agreement between the Company and Hannover Ireland, are exhausted. RLIC X Effective June 20, 2014, the Company and RLIC X amended and restated their existing coinsurance agreement, effective April 1, 2013, to assume certain term life insurance business issued by the Company in 2009 and 2010. As a result of these amendments, RLIC X assumed $128.4 of initial premiums with an initial allowance of $97.6. The net consideration of $30.8 was withheld by the Company and deposited into a funds withheld account. In conjunction with the amending and restating of the coinsurance agreement, the Company, RLIC X, and Hannover also amended and restated their XOL reinsurance agreement. Effective April 1, 2013, the Company entered into a coinsurance with funds withheld reinsurance agreement to cede certain level term life insurance business to RLIC X, which was subsequently amended and restated in 2014 to include additional term life insurance business. Effective April 1, 2013, RLIC X entered into a MRT reinsurance agreement with GLIC to retrocede the mortality risk on the reinsured policies assumed from the Company to GLIC. This MRT reinsurance agreement excluded those policies which were originally written by GLIC. Effective April 1, 2013, RLIC X also entered into an XOL reinsurance agreement with the Company and Hannover, which was approved by the Virginia Bureau as a form of security otherwise acceptable to the Commissioner in order for the Company to take reinsurance credit on its balance sheet for the amount of its reinsurance credits for reserves ceded to RLIC X in an amount subject to a cap, equal to the difference between the statutory reserves and the qualified reserves with respect to such business. F-63 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Effective July 31, 2016, the Company terminated this XOL reinsurance agreement with Hannover and RLIC X for new business. The XOL reinsurance agreement remains in effect for policies issued on or prior to July 31, 2016. Effective December 1, 2017, RLIC X recaptured the MRT reinsurance agreement with GLIC and simultaneously entered into a new MRT reinsurance agreement with NewRe whereby it retrocedes 100% of the mortality risk assumed from the Company to NewRe. The coinsurance treaty between the Company and RLIC X, as well as the XOL between the Company, RLIC X, and Hannover were amended to reflect the MRT reinsurance agreement change. RLIC & RLIC II Effective January 1, 2016, the Company recaptured all term life insurance business ceded to RLIC and RLIC II, receiving recapture payments of $175.9 and $188.3, respectively, as consideration. RLIC and RLIC II were dissolved effective April 11, 2016. Other Affiliate Reinsurance Transactions Effective January 1, 2000, the Company ceded new term and universal life insurance business to GLIC. These agreements were terminated with respect to new business in 2001. Effective September 1, 2016, the Company recaptured most liabilities on the universal life insurance policies ceded to GLIC, resulting in a $100.0 ceded reserves reduction. Ceded reinsurance reserves to GLIC as of December 31, 2018 and 2017 were $1,073.2 and $1,250.2, respectively. Effective April 1, 2011, the Company amended and restated its existing universal life insurance treaty with GLIC to assume certain additional universal life insurance policies including total living coverage ("TLC") insurance policies from GLIC. Effective September 1, 2016, GLIC recaptured all of the liabilities of the TLC insurance policies ceded to the Company, resulting in a $397.9 reduction in assumed reserves. Reserves assumed as of December 31, 2018 and 2017 were $1,333.1 and $1,247.4, respectively. Effective October 1, 2013, the Company entered into a Modco reinsurance agreement with GLIC to assume single premium deferred annuity business on a Modco basis. Effective July 1, 2017, GLIC recaptured this reinsurance agreement resulting in the recapture of $263.4 of modified coinsurance reserves and paid a recapture payment of $4.3 to the Company. Effective November 1, 2016, the Company amended and restated its existing LTC treaty with GLIC to cede the remaining LTC policies to GLIC. As a result of this transaction, the Company paid $1.9 as initial ceding commission to GLIC. Reserves ceded as of December 31, 2018 and 2017 were $89.8 and $98.3, respectively. Effective April 1, 2017, the Company assumed certain term life insurance business from GLIC with an initial premium of $68.9 and paid a ceding commission of $48.6 to GLIC. For the net settlement, GLIC transferred bonds of $7.7, mortgage loans of $8.2 and cash of $4.4 to the Company. Reserves assumed as of December 31, 2018 and 2017 were $53.8 and $55.0, respectively. Effective April 1, 2017, the Company assumed certain universal life insurance business from GLIC with an initial premium of $101.0 and paid a ceding commission of $4.9 to GLIC. For the net settlement, GLIC transferred bonds of $79.8, mortgage loans of $14.4 and cash of $0.2 to the Company resulting in a loss of $1.7. Reserves assumed as of December 31, 2018 and 2017 were $124.4 and $106.7, respectively. Effective April 1, 2017, the Company assumed certain single premium whole life insurance business from GLIC with an initial premium of $134.6 and paid a ceding commission of $2.8 to GLIC. For the net settlement, GLIC transferred bonds of $89.8, mortgage loans of $26.1, policy loans of $14.9 and cash of $0.3 to the Company resulting in a loss of $0.7. Reserves assumed as of December 31, 2018 and 2017 were $119.7 and $128.1, respectively. F-64 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Offshore Affiliate Reinsurance Transactions BLAIC In February 2016, as part of restructuring its U.S. life insurance businesses, Genworth announced an initiative to repatriate existing reinsured business from BLAIC, its primary Bermuda domiciled captive reinsurance subsidiary, to its U.S. life insurance subsidiaries in 2016. Effective April 1, 2016, the Company recaptured a block of universal life insurance from BLAIC. In addition, effective July 1, 2016, the Company recaptured a block of term life insurance from BLAIC and terminated a term life insurance XOL reinsurance agreement with BLAIC. The repatriation was completed through the merger of BLAIC with and into GLIC in October 2016. Universal Life Insurance The Company was a party to a reinsurance agreement to cede certain universal life insurance policies on a Modco 60% first dollar quota share basis to BLAIC. Effective April 1, 2016, the Company recaptured the universal life insurance block of policies from BLAIC resulting in recapture payment of $16.2 to BLAIC. Term Life Insurance The Company was a party to a reinsurance agreement to cede certain term life insurance between 1996 and 1999 to BLAIC on a coinsurance basis and was subject to the reserving requirements of Regulation XXX. Effective July 1, 2016, the Company recaptured all of the liabilities on the term life insurance policies ceded to BLAIC, resulting in a pre-tax reduction to the Company's capital and surplus of $215.4. RLIC IV Effective September 1, 2016, the Company recaptured all of the remaining liabilities on the term life insurance policies ceded to RLIC IV. As a result of the recapture, the Company paid recapture fees of $0.8 and recorded a net loss of $2.8. RLIC IV was dissolved on December 1, 2016. Significant External Reinsurers On April 15, 2004, the Company entered into two reinsurance agreements with UFLIC pursuant to which it ceded, effective as of January 1, 2004, substantially all its variable annuity block of business and its structured settlement block of business to UFLIC. Ceded general account reinsurance reserves to UFLIC for the variable annuity block of business as of December 31, 2018 and 2017 were $618.9 and $662.8, respectively, and Modco reserves established by the Company as of December 31, 2018 and 2017 for the separate accounts were $1,454.0 and $1,768.9, respectively. Ceded reinsurance reserves for the structured settlement block of business as of December 31, 2018 and 2017 were $5,329.5 and $5,464.7, respectively. Under a separate reinsurance agreement, the Company assumed a Medicare supplement block of business from UFLIC. The assumed reserves for this block of business as of December 31, 2018 and 2017 were $0.5 and $0.7, respectively. To secure the payment of its obligations to the Company under the reinsurance agreements governing the reinsurance transactions, UFLIC has established trust accounts to maintain an aggregate amount of assets with a statutory book value at least equal to the statutory general account reserves attributable to the reinsured business less an amount to be held in certain claims paying accounts. A trustee administers the trust accounts and the Company is permitted to withdraw from the trust accounts amounts due to the Company pursuant to terms of the reinsurance agreements that are not otherwise paid by UFLIC. As of December 31, 2018, the amount of assets in the trust was $6,440.5. Effective December 1, 2013, immediately after recapturing a substantially similar block of business from Hannover, the Company entered into a new reinsurance agreement with Hannover to cede certain universal life and term life insurance F-65 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) business on coinsurance, Modco with funds withheld and yearly renewable term ("YRT") basis. As of December 31, 2018 and 2017, ceded Modco reserves were $752.8 and $598.5, respectively. Ceded yearly renewable term reserves were $154.4 and $77.3, respectively, and ceded coinsurance reserves were $1,370.4 and $1,090.4, respectively. Effective December 1, 2018, the Company amended an existing treaty with Hannover containing both term and universal life insurance contracts that are reinsured on a combined coinsurance/modified coinsurance ("Co/Modco") basis and YRT basis. This amendment included the following: . Term life insurance conversions issued in 2001 through June 2006 previously reinsured on a 100% quota share YRT basis changed to a 100% quota share Co/Modco basis. . Term life insurance issued in 1996 through 2000 previously reinsured on a 25% quota share YRT basis was recaptured and added to an existing reinsurance agreement with the Canada Life as discussed further below. . Universal life insurance issued in 1980 through 1998 previously reinsured on a 100% quota share YRT basis via a separate reinsurance agreement with Hannover was recaptured and added to this treaty on a 100% quota share YRT basis. . Term universal life insurance issued in 2009 through 2014 previously reinsured on a 100% quota share YRT basis via a separate reinsurance agreement with Hannover was changed to 80% quota share and the 20% quota share was added to this treaty. The items above resulted in a net increase of $293.0 in ceded reserves and an initial gain of $94.3 of which $74.5, net of tax, was deferred. Effective December 1, 2018, the Company also executed several recaptures that were included as part of this amendment, collectively referred to as the "December 1, 2018 Hannover Amendment" in the discussion below. The net impact on ceded reserves of the December 1, 2018 Hannover Amendment was $141.3. Effective December 1, 2018, the Company also amended an existing treaty with Canada Life reinsuring a 75% quota share of certain term life insurance business on a YRT basis. As discussed above, the term life insurance issued in 1996 through 2000 previously reinsured to Hannover on a 25% quota share YRT basis was recaptured and added to this treaty, increasing the quota share to 100%. The amendment resulted in a net increase of $56.7 in ceded reserves and an initial gain of $27.7 of which $21.9, net of tax, was deferred. Effective December 31, 2014, the Company entered into a reinsurance agreement with Hannover to cede certain term universal life insurance business on a yearly renewable term basis. Effective July 1, 2018, the Company recaptured certain universal life insurance contracts from Hannover under this reinsurance agreement and RGA Reinsurance Company, under a separate reinsurance agreement. As a result, the Company recaptured $105.1 of reserves and received a recapture fee of $0.4. Effective August 1, 2018, the Company amended an existing YRT treaty with Hannover to cede all term universal life insurance contracts that were included in the business recaptured on July 1, 2018, except those written by the Company's affiliate, GLICNY. Additionally, contracts included in the existing treaty prior to the amendment on an 80% quota share were increased to a 100% quota share under that amendment. That amendment resulted in $114.3 of initial premiums ceded to Hannover and $94.0 of ceded reserves. As discussed above, the Company further amended the Hannover treaty, reducing the quota share to 80% and added the recaptured 20% quota share to the December 1, 2018 Hannover Amendment. This resulted in a net decrease of $45.4 in ceded reserves (included in the net impact above for the December 1, 2018 Hannover Amendment). On December 28, 2017, the Company entered into a binding letter of intent ("LOI") with Hannover. The Company recognized $112.4 of ceded reserves for the LOI as of December 31, 2017. On March 21, 2018, the Company executed the YRT agreement with Hannover to cede certain universal life insurance business, effective December 31, 2017, in response to the LOI. This business was recaptured as part of the December 1, 2018 Hannover Amendment discussed above. The recapture resulted in a net decrease of $106.4 in ceded reserves (included in the net impact above for the December 1, 2018 Hannover Amendment). F-66 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) Effective January 1, 2016, the Company entered into a coinsurance agreement with Protective Life Insurance Company ("Protective Life") to cede most of the term life insurance business previously recaptured from RLIC, RLIC II and JLIC, and an additional 10% quote share for certain term life insurance business assumed from GLIC. The Company ceded $2,269.2 of estimated initial reserves to Protective Life and received an estimated initial allowance of $1,880.7. In addition, Protective Life paid $62.7 as estimated initial ceding commission to the Company. The estimated initial ceded reserves, estimated initial allowance and estimated initial ceding commission were net settled with the Company making a payment of $325.8 in cash to Protective Life. During the second quarter of 2016, the Company recorded an adjustment to the initial net settlement of $0.1 to reflect actual initial ceded total reserves, actual initial economic reserves, actual initial allowance and actual ceding commission based on the inventory of ceded policies in-force as of January 1, 2016. As of December 31, 2018 and 2017, ceded reserves were $2,010.4 and $2,186.8, respectively. Ceding Entities that Utilize Captive Reinsurers to Assume Reserves Subject to the XXX/AXXX Captive Framework As of December 31, 2018, the Company had one reinsurance agreement carried under the Term and Universal Life Insurance Reserve Financing Model Regulation, for which risks under covered policies have been ceded by the Company to RLIC X. There were no RBC implications as there was no shortfall as of December 31, 2018. (9) StatutoryCapital and Surplus and Dividend Restriction The NAIC utilizes RBC to evaluate the adequacy of statutory capital and surplus in relation to risks associated with: (1) asset risk, (2) insurance risk, (3) interest rate and equity market risk, and (4) business risk. The RBC formula is designed as an early warning tool for the states to identify potential undercapitalized companies for the purpose of initiating regulatory action. In the course of operations, the Company periodically monitors the level of its RBC and it exceeded the minimum required levels as of and for the years ended December 31, 2018, 2017 and 2016. The RBC ratio of the Company was 845% and 854% as of December 31, 2018 and 2017, respectively. State insurance departments, which regulate insurance companies, recognize only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under law, and for determining whether its financial condition warrants payment of a dividend to its shareholder. The Company is restricted by the Commonwealth of Virginia Insurance Code as to the amount of dividends that may be paid within a 12-consecutive-month period without regulatory consent. That restriction is the greater of statutory net gain from operations for the previous year or 10% of total capital and surplus as of December 31 of the previous year. As of December 31, 2018, the Company has no capacity to make a dividend payment without prior approval in 2019. (10)Separate Accounts The Company has separate account assets and liabilities related to closed blocks of variable universal life insurance, individual and group variable deferred annuities and modified guaranteed annuities. Separate account assets are carried at fair value and are offset by liabilities that represent the policyholders' equity in those assets. The Company earns mortality and expense risk fees from the separate accounts and may assess withdrawal charges in the event of early withdrawals. Separate account variable universal life insurance contracts include a GMDB and a secondary no-lapse guarantee, which keeps the policy in-force as long as minimum scheduled premiums are paid. Variable annuity contracts may include a GMDB, a guaranteed payout annuity floor (similar to a guaranteed minimum income benefit), a guaranteed minimum income benefit or guaranteed minimum withdrawal benefit or a combination thereof. These guarantees are backed by investments held in the general account. The separate account assets without guarantees represent variable life and annuity products with assets and liabilities valued at fair value. The Company bears no market or default risk for these assets. The total amounts paid from the general account to the separate account related to separate account guarantees for the preceding five years ending December 31, 2018, 2017, 2016, 2015 and 2014 were $23.3, $25.3, $34.8, $26.8 and $22.0, F-67 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) respectively. To compensate the general account for the risks taken, the separate accounts has paid risk charges of $34.3, $41.2, $45.7, $49.2 and $52.7, for the past five years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively. Assets supporting the Company's separate account product contracts of $5,451.1 and $6,722.1 as of December 31, 2018 and 2017, respectively, were considered legally insulated and not subject to claims of the general account. Information regarding the separate accounts of the Company as of and for the year ended December 31, 2018 was as follows:

Non-indexed guarantee Non-indexed Non-guaranteed less than or guarantee separate equal to 4% more than 4% accounts Total ------------ ------------ -------------- -------- Premiums, considerations or deposits for the year ended December 31, 2018.......................... $ -- $ -- $ 28.4 $ 28.4 ===== ==== ======== ======== Reserves as of December 31, 2018: For accounts with assets at: Fair value.................................. $12.5 $6.1 $5,407.9 $5,426.5 ----- ---- -------- -------- Total reserves.............................. $12.5 $6.1 $5,407.9 $5,426.5 ===== ==== ======== ======== By withdrawal characteristics: With fair value adjustment.................. $12.5 $6.1 $ -- $ 18.6 At fair value............................... -- -- 5,407.9 5,407.9 ----- ---- -------- -------- Subtotal.................................... 12.5 6.1 5,407.9 5,426.5 Not subject to discretionary withdrawal..... -- -- -- -- ----- ---- -------- -------- Total....................................... $12.5 $6.1 $5,407.9 $5,426.5 ===== ==== ======== ========

Reconciliation of net transfers to (from) separate accounts for the year ended December 31, 2018 was as follows:

2018 ------- Transfers as reported in the Summary of Operations of the separate accounts statement: Transfers to separate accounts........................................................... $ 28.4 Transfers from separate accounts......................................................... 804.8 ------- Net transfers to separate accounts, per the separate accounts annual statement....... (776.4) Reconciling adjustments: Transfer to separate accounts -- reinsured............................................... 210.8 ------- Net transfers from separate accounts, per the Statutory Statement of Summary of Operations......................................................................... $(565.6) =======

All assets, liabilities and surplus related to the separate accounts have been recorded in the financial statements. (11)Leases The Company has entered into various lease obligations for field offices throughout the country as well as an operating lease for office equipment. These obligations are part of the Company's normal business operations and are not material in the aggregate. F-68 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (12)FHLB Funding Agreement (1)The Company is a member of the FHLB Atlanta. Through its membership, the Company has outstanding funding agreements with FHLB Atlanta, as of December 31, 2018, in the amount of $212.5, which related to total liabilities of $213.2. As of December 31, 2017, the Company had outstanding funding agreements with FHLB Atlanta in the amount of $25.0, which related to total liabilities of $25.0. The Company uses these funds for liquidity management and asset liability management in an investment spread strategy, consistent with its other investment spread programs. The Company records the funds under SSAP No. 52, Deposit Type Contracts, consistent with its accounting for other deposit type contracts. It is not part of the Company's strategy to utilize these funds for operations, and any funds obtained from the FHLB Atlanta for use in general operations would be accounted for under SSAP No. 15, Debt and Holding Company Obligations, as borrowed money. The Company has LoCs with FHLB Atlanta in the amount of $28.2, none of which have been drawn upon as of December 31, 2018. The tables below indicate the amount of FHLB Atlanta stock purchased, collateral pledged, assets and liabilities related to the agreement with FHLB Atlanta as of December 31, 2018 and 2017. The Company's borrowing capacity, including issuance of letters of credit, is subject to a broad regulatory restriction that limits an insurer from pledging more than 7.0% of its net admitted assets. (2)The tables below indicate the amount of FHLB Atlanta stock purchased, collateral pledged, assets and liabilities related to the agreement with FHLB Atlanta as of December 31, 2018 and 2017: FHLB Capital Stock a. Aggregate Totals as of December 31, 2018 and 2017:

2018 ------------------------- General Separate Description Total account accounts ----------- -------- ------- -------- Membership stock -- Class A................................. $ -- $ -- $ -- Membership stock -- Class B................................. 24.0 24.0 -- Activity stock.............................................. -- -- -- Excess stock................................................ -- -- -- -------- ----- ---- Aggregate total............................................. $ 24.0 $24.0 $ -- ======== ===== ==== Actual or estimated borrowing capacity as determined by the insurer................................................... $1,000.0 XXX XXX

2017 ------------------------- General Separate Description Total account accounts ----------- -------- ------- -------- Membership stock -- Class A................................. $ -- $ -- $ -- Membership stock -- Class B................................. 16.1 16.1 -- Activity stock.............................................. -- -- -- Excess stock................................................ -- -- -- -------- ----- ---- Aggregate total............................................. $ 16.1 $16.1 $ -- ======== ===== ==== Actual or estimated borrowing capacity as determined by the insurer................................................... $1,000.0 XXX XXX

F-69 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) b. Membership stock (Class A and B) eligible for redemption

6 months Not eligible Less to less 1 to less for than than than 3 to 5 Membership stock 2018 total redemption 6 months 1 year 3 years years ---------------- ---------- ------------ -------- -------- --------- ------ Class A...... $ -- $-- $-- $-- $-- $ -- Class B...... 24.0 -- -- -- -- 24.0

(3)Collateral Pledged to FHLB a. Amount pledged as of December 31, 2018 and 2017:

Fair Carrying Aggregate total value value borrowing ------ -------- --------------- 1. Current year total general and separate accounts total collateral pledged (Lines 2+3)................................................ $285.4 $248.9 $212.5 2. Current year general account total collateral pledged............. 285.4 248.9 212.5 3. Current year separate accounts total collateral pledged........... -- -- -- ------ ------ ------ 4. Prior year-end total general and separate accounts total collateral pledged................................................. $ 72.4 $ 58.9 $ 25.0

b. Maximum amount pledged during reporting period ending December 31, 2018 and 2017:

Amount borrowed at Fair Carrying time of maximum value value collateral ------ -------- ------------------ 1. Current year total general and separate accounts maximum collateral pledged (Lines 2+3)............................ $285.4 $248.9 $212.5 2. Current year general account maximum collateral pledged................................................... 285.4 248.9 212.5 3. Current year separate accounts maximum collateral pledged................................................... -- -- -- ------ ------ ------ 4. Prior year-end total general and separate accounts maximum collateral pledged................................ $ 72.4 $ 59.0 $ 25.0

(4)Borrowing from FHLB a. Amount as of December 31, 2018 and 2017:

2018 - ----------------------------------- Funding agreements General Separate reserves Description Total account accounts established ----------- ------ ------- -------- ----------- 1. Debt.................... $ -- $ -- $-- XXX 2. Funding agreements...... 212.5 212.5 -- $213.2 3. Other................... -- -- -- XXX ------ ------ --- ------ 4. Aggregate total (1+2+3). $212.5 $212.5 $-- $213.2 ====== ====== === ======

F-70 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 - ---------------------------------- Funding agreements General Separate reserves Description Total account accounts established ----------- ----- ------- -------- ----------- 1. Debt.................... $ -- $ -- $-- XXX 2. Funding agreements...... 25.0 25.0 -- $25.0 3. Other................... -- -- -- XXX ----- ----- --- ----- 4. Aggregate total (1+2+3). $25.0 $25.0 $-- $25.0 ===== ===== === =====

b. Maximum amount during reporting period ending December 31, 2018:

General Separate Description Total account accounts ----------- ------ ------- -------- 1. Debt.......................... $ -- $ -- $-- 2. Funding agreements............ 212.5 212.5 -- 3. Other......................... -- -- -- ------ ------ --- 4. Aggregate total (Lines 1+2+3). $212.5 $212.5 $-- ====== ====== ===

c. FHLB -- prepayment obligations

Does the company have prepayment obligations under the Description following arrangements (Yes/No)? ----------- -------------------------------- Debt............... No Funding agreements. No Other.............. No

F-71 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (13)Fair Value of Financial Instruments The following tables set forth the Company's assets and liabilities that were reported at fair value as of December 31, 2018 and 2017:

2018 ------------------------------------------- Net asset value Level 1 Level 2 Level 3 (NAV) Total -------- ------- ------- --------- -------- Assets Bonds: Commercial mortgage-backed............... $ -- $ 0.2 $ -- $-- $ 0.2 -------- ----- ----- --- -------- Total bonds.................. -- 0.2 -- -- 0.2 -------- ----- ----- --- -------- Common stock: Industrial and miscellaneous................. -- -- 24.0 -- 24.0 -------- ----- ----- --- -------- Total common stock...................... -- -- 24.0 -- 24.0 -------- ----- ----- --- -------- Cash equivalents: Money market mutual funds.................. 354.6 -- -- -- 354.6 -------- ----- ----- --- -------- Total cash equivalents................ 354.6 -- -- -- 354.6 -------- ----- ----- --- -------- Derivative assets: Equity index options....................... -- -- 39.0 -- 39.0 -------- ----- ----- --- -------- Total derivative assets..................... -- -- 39.0 -- 39.0 -------- ----- ----- --- -------- Separate account assets............................ 5,417.5 22.8 1.9 -- 5,442.2 -------- ----- ----- --- -------- Total assets................. $5,772.1 $23.0 $64.9 $-- $5,860.0 ======== ===== ===== === ======== Liabilities Derivative liabilities: Equity return swaps......................... $ -- $ -- $ -- $-- $ -- -------- ----- ----- --- -------- Total derivative liabilities................ -- -- -- -- -- -------- ----- ----- --- -------- Total liabilities............ $ -- $ -- $ -- $-- $ -- ======== ===== ===== === ========

F-72 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 --------------------------------- Level 1 Level 2 Level 3 Total -------- ------- ------- -------- Assets Bonds: Commercial mortgage-backed............... $ -- $ 0.2 $ -- $ 0.2 -------- ----- ----- -------- Total bonds.................. -- 0.2 -- 0.2 -------- ----- ----- -------- Common stock: Industrial and miscellaneous................. -- -- 16.1 16.1 -------- ----- ----- -------- Total common stock...................... -- -- 16.1 16.1 -------- ----- ----- -------- Cash equivalents: Money market mutual funds.................. 392.8 -- -- 392.8 -------- ----- ----- -------- Total cash equivalents................ 392.8 -- -- 392.8 -------- ----- ----- -------- Derivative assets: Equity index options....................... -- -- 79.6 79.6 -------- ----- ----- -------- Total derivative assets..................... -- -- 79.6 79.6 -------- ----- ----- -------- Separate account assets............................ 6,670.4 39.9 3.2 6,713.5 -------- ----- ----- -------- Total assets................. $7,063.2 $40.1 $98.9 $7,202.2 ======== ===== ===== ======== Liabilities Derivative liabilities: Equity return swaps......................... $ -- $ 2.0 $ -- $ 2.0 -------- ----- ----- -------- Total derivative liabilities................ -- 2.0 -- 2.0 -------- ----- ----- -------- Total liabilities............ $ -- $ 2.0 $ -- $ 2.0 ======== ===== ===== ========

The following tables present additional information about assets and liabilities measured at fair value for which the Company has utilized significant unobservable (Level 3) inputs to determine fair value as of December 31, 2018, 2017 and 2016:

2018 ------------------------------------------------------------------------------------------- Total gains and Beginning (losses) Total balance included gains and as of Transfers Transfers in net (losses) January 1, in to out of income included Investments 2018 Level 3 Level 3 (loss) in surplus Purchases Issuances Sales Settlements ----------- ---------- --------- --------- --------- ---------- --------- --------- ------ ----------- Common stock............. $16.1 $-- $-- $ -- $ -- $ 8.5 $-- $ (0.6) $ -- Separate account assets.. 3.2 -- -- -- (0.1) -- -- -- (1.2) Derivative assets........ 79.6 -- -- 16.2 (50.7) 74.8 -- (80.9) -- ----- --- --- ----- ------ ----- --- ------ ----- Total assets.......... $98.9 $-- $-- $16.2 $(50.8) $83.3 $-- $(81.5) $(1.2) ===== === === ===== ====== ===== === ====== =====

------------- Ending balance as of December 31, Investments 2018 ----------- ------------ Common stock............. $24.0 Separate account assets.. 1.9 Derivative assets........ 39.0 ----- Total assets.......... $64.9 =====

F-73 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions)

2017 -------------------------------------------------------------------------------------------- Total gains and Beginning (losses) Total balance included gains and as of Transfers Transfers in net (losses) January 1, in to out of income included Investments 2017 Level 3 Level 3 (loss) in surplus Purchases Issuances Sales Settlements ----------- ---------- --------- --------- --------- ---------- --------- --------- ------- ----------- Common stock............. $15.0 $-- $-- $ -- $ -- $ 1.1 $-- $ -- $ -- Separate account assets.. 5.0 -- -- -- -- -- -- -- (1.8) Derivative assets........ 72.0 -- -- 49.6 7.8 72.0 -- (121.8) -- ----- --- --- ----- ---- ----- --- ------- ----- Total assets.......... $92.0 $-- $-- $49.6 $7.8 $73.1 $-- $(121.8) $(1.8) ===== === === ===== ==== ===== === ======= =====

------------- Ending balance as of December 31, Investments 2017 ----------- ------------ Common stock............. $16.1 Separate account assets.. 3.2 Derivative assets........ 79.6 ----- Total assets.......... $98.9 =====

2016 --------------------------------------------------------------------------------------------- Total gains and Beginning (losses) Total balance included gains and as of Transfers Transfers in net (losses) January 1, in to out of income included Investments 2016 Level 3(a) Level 3(b) (loss) in surplus Purchases Issuances Sales Settlements ----------- ---------- ---------- ---------- --------- ---------- --------- --------- ------ ----------- Loan-backed and structured securities (NAIC-3-3)............. $ -- $0.2 $(0.2) $ -- $ -- $ -- $-- $ -- $ -- Common stock............. 15.0 -- -- -- -- -- -- -- -- Separate account assets.. 6.0 -- -- -- (0.2) -- -- -- (0.8) Derivative assets........ 28.3 -- -- (3.2) 15.3 74.3 -- (43.6) 0.9 ----- ---- ----- ----- ----- ----- --- ------ ----- Total assets.......... $49.3 $0.2 $(0.2) $(3.2) $15.1 $74.3 $-- $(43.6) $ 0.1 ===== ==== ===== ===== ===== ===== === ====== ===== Derivative liabilities... $ 0.3 $ -- $ -- $ 0.2 $(0.5) $ -- $-- $ -- $ -- ----- ---- ----- ----- ----- ----- --- ------ ----- Total liabilities..... $ 0.3 $ -- $ -- $ 0.2 $(0.5) $ -- $-- $ -- $ -- ===== ==== ===== ===== ===== ===== === ====== =====

------------- Ending balance as of December 31, Investments 2016 ----------- ------------ Loan-backed and structured securities (NAIC-3-3)............. $ -- Common stock............. 15.0 Separate account assets.. 5.0 Derivative assets........ 72.0 ----- Total assets.......... $92.0 ===== Derivative liabilities... $ -- ----- Total liabilities..... $ -- =====

-------- (a)Transferred from Level 2 to Level 3 because of lack of observable market data due to decrease in market activity for these securities or movement from amortized cost reporting to fair value. (b)Transferred from Level 3 to Level 2 because of observable market data became available for these securities or movement from fair value reporting to amortized cost. Realized and unrealized gains (losses) on Level 3 assets and liabilities are primarily reported in either net income (loss) or change in net unrealized capital gains (losses) based on the appropriate accounting treatment for the instrument. Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and settlements of investments. There were no gains or losses for the period included in net income (loss) attributable to unrealized gains (losses) related to assets still held as of the reporting date. F-74 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) The following tables set forth the Company's financial instruments' fair value, admitted amounts and level of fair value amounts as of December 31, 2018 and 2017:

2018 - ---------------------------------------------------------------------- Not Net asset practicable Aggregate Admitted value (carrying Financial instruments fair value assets Level 1 Level 2 Level 3 (NAV) value) --------------------- ---------- --------- -------- --------- -------- --------- ----------- Bonds.................... $11,539.4 $11,329.0 $ -- $10,410.0 $1,129.4 $-- $-- Preferred and common stocks-nonaffiliates... 68.9 70.5 19.0 25.0 24.9 -- -- Separate account assets.. 5,442.3 5,442.3 5,417.5 22.9 1.9 -- -- Mortgage loans........... 1,874.1 1,867.2 -- -- 1,874.1 -- -- Short-term investments... 2.0 2.0 -- 2.0 -- -- -- Cash equivalents......... 383.6 383.6 383.6 -- -- -- -- Other invested assets.... 63.5 56.3 -- 63.5 -- -- -- Securities lending reinvested collateral.. 24.0 24.0 -- 24.0 -- -- -- Derivative assets........ 40.2 39.7 -- 1.2 39.0 -- -- Derivative liabilities... -- -- -- -- -- -- --

2017 - ------------------------------------------------------------ Not practicable Aggregate Admitted (carrying Financial instruments fair value assets Level 1 Level 2 Level 3 value) --------------------- ---------- --------- -------- --------- -------- ----------- Bonds.................... $12,216.8 $11,278.2 $ -- $11,153.9 $1,062.9 $-- Preferred and common stocks-nonaffiliates... 65.2 62.6 31.9 16.3 17.0 -- Separate account assets.. 6,713.5 6,713.5 6,670.4 39.9 3.2 -- Mortgage loans........... 1,832.6 1,775.4 -- -- 1,832.6 -- Short-term investments... 9.9 9.9 -- 9.9 -- -- Cash equivalents......... 392.8 392.8 392.8 -- -- -- Other invested assets.... 68.5 56.3 -- 68.5 -- -- Securities lending reinvested collateral.. 43.5 43.5 -- 43.5 -- -- Derivative assets........ 79.6 79.6 -- -- 79.6 -- Derivative liabilities... 2.0 -- 2.0 -- --

The carrying value of contract loans, payables and receivables that are financial instruments approximate fair value as of December 31, 2018 and 2017, and therefore are not presented in the tables above. There were no financial instruments for which it was not practicable to estimate fair value. (14)Retained Assets The Company provides a claim form to the beneficiary to choose among various disbursement options which include a payment by check, annuity stream or retained asset account, which the Company refers to as a Secure Access Account. Since April 2011, the Company has required the beneficiary to make a positive election of a retained asset account in order to credit death benefit proceeds from a life insurance policy or an annuity contract to a retained asset account (except in Vermont, whose residents are not eligible for retained asset accounts). Prior to April 2011, in nine states, the Company credited death benefit proceeds from a life insurance policy or an annuity contract to a retained asset account only if the beneficiary affirmatively selected a retained asset account. In all other states (except Vermont, whose residents are not F-75 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) eligible for retained asset accounts) prior to April 2011, the Company credited death benefit proceeds to a retained asset account if the beneficiary affirmatively selected a retained asset account or if the beneficiary failed to select any disbursement options on the claim form. Depending upon the terms of the underlying insurance policy, which could require a higher interest rate than the credited interest rate, the Company's credited interest rates for retained asset accounts were 0.2% during the year ended December 31, 2018 and ranged from 0.1% to 0.2% during the year ended December 31, 2017. During the year ended December 31, 2016, the Company's credited interest rates for retained asset accounts were 0.1%. The Company discloses the relevant details about its retained asset program, including disclosure of the fact that accounts are not Federal Deposit Insurance Corporation insured, in the information provided to the beneficiary with the claim form and in the supplemental contract issued when a retained asset account is established. The account balance and credited interest are fully backed by the claims-paying ability of the issuing insurance company. The Company's secure access program is fully compliant with guidance on retained asset account programs issued in 1995 by the NAIC, and the NAIC's sample bulletin on retained asset accounts issued in December 2010. The following table sets forth the number and balance of retained asset accounts in force as of December 31, 2018 and 2017:

In force --------------------------------- 2018 2017 ---------------- ---------------- Number of Number of policies Amount policies Amount --------- ------ --------- ------ Up to and including 12 months. 190 $ 31.2 183 $ 33.2 13 to 24 months............... 159 25.4 207 25.2 25 to 36 months............... 170 19.7 330 43.2 37 to 48 months............... 296 33.7 416 49.5 49 to 60 months............... 377 38.5 400 37.5 Over 60 months................ 4,120 222.3 4,080 202.3 ----- ------ ----- ------ Total...................... 5,312 $370.8 5,616 $390.9 ===== ====== ===== ======

The following table presents additional information regarding the changes in the number and balance of the retained asset accounts related to individual contracts for the years ended December 31, 2018, 2017 and 2016. There were no group contracts in 2018, 2017 and 2016.

2018 2017 2016 ---------------- ---------------- ---------------- Number of Number of Number of policies Amount policies Amount policies Amount --------- ------ --------- ------ --------- ------ Retained assets accounts as of the beginning of the year............... 5,616 $390.9 5,927 $409.6 6,228 $436.4 Retained asset accounts issued/added during the year............... 220 46.5 204 48.1 279 56.9 Investment earnings credited to retained asset accounts during the year............... -- 9.7 -- 10.2 -- 10.8 Fees and other charges assessed to retained asset accounts during the year............... -- -- -- -- -- -- Retained asset accounts transferred to state unclaimed property funds during the year.. (19) (0.2) (13) -- (16) (0.1) Retained asset accounts closed/withdrawn during the year........ (505) (76.1) (502) (77.0) (564) (94.4) ----- ------ ----- ------ ----- ------ Retained asset accounts at the end of the year. 5,312 $370.8 5,616 $390.9 5,927 $409.6 ===== ====== ===== ====== ===== ======

F-76 GENWORTH LIFE AND ANNUITY INSURANCE COMPANY Notes to Statutory Financial Statements -- Continued Years Ended December 31, 2018, 2017 and 2016 (Dollar amounts in millions) (15)Risk Sharing Provisions of the Affordable Care Act The Company does not write accident and health insurance policies subject to the affordable care act risk sharing provisions. Although the Company holds several accident and health policies in-force, these policies are not subject to the affordable care act sharing provisions. (16)Investments in Subsidiary, Controlled and Affiliates Entities The Company has two controlling investments in the common stock of noninsurance subsidiaries as of December 31, 2018 and 2017:

NAIC reject Description of NAIC 2018 2017 entity's valuation SCA investment Admitted Type of response NAIC NAIC method, (excluding 8.b.i Gross asset Date of filing NAIC received valuation valuation resubmission entities) amount amount to NAIC filing (yes/no) amount amount required (yes/no) --------- ------ -------- -------------- ------- -------- --------- --------- ------------------ ASI (VA)*................ $ -- $ -- 9/6/2017 Sub-1 yes $ -- $ -- no Newco (VA)............... 39.2 39.2 6/5/2018 Sub-2 yes 37.2 37.3 no ----- ----- ----- ----- Aggregate Total.......... $39.2 $39.2 $37.2 $37.3 ===== ===== ===== =====

-------- * ASI (VA) rounds to zero. See Note 2b for information related to the permitted practices of the Company's insurance subsidiaries which are carried at zero and had no impact on the Company's surplus. (17)Subsequent Events On March 6, 2019, Scottish Re, a reinsurance company domiciled in Delaware, was ordered into receivership for the purposes of rehabilitation by the Court of Chancery of the State of Delaware. It is contemplated that a plan of rehabilitation for Scottish Re, if feasible, will be filed and approved within 120 days of the Rehabilitation Order. As of March 31, 2019, the Company had a receivable of $3.1 from Scottish Re, of which $2.8 related to March 2019 activity. At this time, the Company expects to collect all amounts due from Scottish Re; however, it will continue to monitor the developments related to the rehabilitation. There were no other material events that occurred subsequent to December 31, 2018. Subsequent events have been considered through April 22, 2019, the date the statutory financial statements were issued. F-77