Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada Inc. (now Sagen MI Canada) — Q3 2020 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Nov 3, 2020
Slide 1: Third Quarter 2020 Results
GENWORTH MI CANADA INC. (now operating as Sagen MI CanadaTM ) Third Quarter 2020 Results November 3rd, 2020 1 GENWORTH MI CANADA Q3 2020 Results SAGEN MI Canada
Slide 2: Forward-looking and Non-IFRS Statements
Forward-looking and Non-IFRS Statements Public communications, including oral or written communications such as this document, relating to Genworth MI Canada Inc. (the “Company”, or “MIC”) often contain certain forward-looking statements. These forward-looking statements include, but are not limited
Slide 3: Q3 Financial Results
Q3 Financial Results $MM except loss ratio, Q3 Q2 Q3 Q3 key highlights Op. ROE, Op. EPS & Q/Q Y/Y MICAT ratio 2020 2020 2019 • Total premiums written increased Y/Y by 36% primarily due Premiums written $297 $227 $218 +31% +36% to an increase in transactional mortgage originations and Premiums earned
Slide 4: Potential Economic Scenarios
Potential Economic Scenarios Base Assumptions Downside Assumptions GDP • Slow recovery through rest of 2020 as increasing • Deeper economic shock and slower recovery as 2nd cases result in more targeted shutdowns of wave of Covid-19 impacts most regions provincial economies • Provinces reintroduce m
Slide 5: Top Line
Top Line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $677 $70 $19.4 $6 $6 $568 $16.0 Q4 $177 $16.3 Q4 $5.1 $1.6 $291 $24 Q3 $213 Q3 $6.1 $8.3 $5 $60 $6.0 $13.4 $500 $6 $14.3 $187 $167 Q2 $5.3 $4.8 $1.3 Q2 $8 $19 $1.3 $2.4 $4.7 Q1 $
Slide 6: Strong Portfolio Quality
Strong Portfolio Quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) Credit Score Ratio LTV Avg < 660 Contractual TDSR > 40% 90-95% % Score <660 Avg score Compliance GDSR/TDSR Max < 680 90-95% $371 $369 > 35%/42% $357 $356 $350 $349 $335 $331 $327 $324 $322 1.3% $315 $304 $30
Slide 7: Reported Mortgage Payment Deferrals
Reported Mortgage Payment Deferrals Reporting overview Mortgage payment deferrals have declined to 5.9% of total outstanding mortgages as at September 30, 2020 from 13.7% at the end of the second quarter: • Approximately 66% have an estimated current effective loan-to-value less than 80%. Most defer
Slide 8: Strong Financial Performance
Strong Financial Performance $MM except EPS & BVPS Q3’20 Q2’20 Q3’19 Q3 highlights Transactional premiums $291 $167 $213 written • Transactional premiums written were higher by 37% Y/Y on increased housing Portfolio premiums written 6 60 6 activity and market share Total premiums written $297 $227 $
Slide 9: Accounting for Payment Deferrals
Accounting for Payment Deferrals Loss reserving for payment deferrals • The Company has included a provision in its IBNR1 reserve for its estimate of the losses from defaults that would have otherwise occurred had payment deferrals not been in place. • IBNR reserve for payment deferrals estimated us
Slide 10: Delinquency Trends
Delinquency Trends Outstanding delinquencies1,2 New delinquencies, net of cures, by region1,2 Ontario BC Alberta Ontario Pacific Alberta Quebec Atlantic Prairies Quebec Atlantic Prairies 1,798 1,974 491 1,761 1,754 1,769 297 385 69 242 258 273 271 373 39 206 221 226 227 166 48 64 284 73 315 295 293
Slide 11: Investments
Investments Total investments and net derivatives Operating Investment Income ($6.7B1) (excluding realized/unrealized gains, $ millions) Duration: 3.6 years Book yield: 3.0%2 $225 Market MTM6 MTM6 Q4 $55 $149 Portfolio ($MM) % Mix Value Q3 Q2 Q3 $57 $48 Cash & other4 477 - 7% - Q2 $56 $170 $48 Q1 $5
Slide 12: Capital management
Capital management Regulatory capital as at September 30th, 2020 (by category, $ millions unless otherwise noted)* Highlights September 30th, June 30th, 2020 2020 • MICAT ratio of 179% positions MIC to MICAT & Holdco Cash capitalize on organic growth opportunities Capital available 4,217 4,104 o Cap
Slide 13: Revised 2020 outlook
Revised 2020 outlook Significantly higher total premiums written due to the increase in portfolio insurance opportunities, the recovery in the housing market and market share gains Modestly higher premiums earned due to the increase in premiums written Full year loss ratio range revised to 15% to 25
Slide 14: Investor Relations
Aaron Williams, CPA, CA Vice President, Finance/Investor Relations 905.287.5504 aaron.williams@sagen.ca Investor Relations investor.sagen.ca investor@sagen.ca 14 GENWORTH MI CANADA Q3 2020 Results SAGEN MI Canada
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