Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q4 2011 Earnings Presentation

15 slides from Sagen MI Canada's earnings presentation, Feb 3, 2012

  1. Slide 1: Fourth Quarter 2011

    Genworth MI Canada Inc. Fourth Quarter 2011 February 3, 2012

  2. Slide 2: Speakers

    Speakers Brian Hurley Stuart Levings Philip Mayers Genworth MI Canada Inc. 2 Q4 2011 February 3, 2012

  3. Slide 3: Forward-Looking and Non-IFRS Statements

    Forward-Looking and Non-IFRS Statements This presentation includes certain forward-looking statements. These forward-looking statements include, but are not limited to, statements with respect to the Company’s future operating and financial results, expectations regarding premiums written, capital e

  4. Slide 4: Solid Q4 2011 and Full Year Results

    Solid Q4 2011 and Full Year Results Q4 2011 Full Year 2011 Net operating income $79 MM $318 MM Return on equity 13% 13% Operating earnings per share (diluted) $0.80 $3.12 Operating Earnings Per Share (Diluted) Book Value Per Share (Diluted, including AOCI) $3.23 $26.94 $3.12 $24.44 $3.01 $22.40 Chan

  5. Slide 5: Stable Canadian Market

    Stable Canadian Market  Overall economy remain positive  Tempered consumer confidence  Slowing home price appreciation  Low rates supportive of housing market  Borrower quality remains high Genworth MI Canada Inc. 5 Q4 2011 February 3, 2012

  6. Slide 6: Delivering Solid Results

    Delivering Solid Results Priorities Full Year 2011 Premiums Net premiums written of $533 MM Prudent risk management Loss ratio of 37% General investment portfolio return Book yield of 4.3% Capital strength 162% MCT vs. 145% internal target Dividends to shareholders $1.07 per share plus special divid

  7. Slide 7: Signs of a Soft Landing in Housing Market

    Signs of a Soft Landing in Housing Market Flat home price appreciation  Reasonable supply at 5.8 months  Moderating demand reflects affordability pressures Mortgage originations flat  Slower economic environment  Reduced urgency to buy as low rates persist Stable debt service ratios  Increasing

  8. Slide 8: Improving Delinquency Rate

    Improving Delinquency Rate Mortgage insurance portfolio Insurance delinquency rate in-force Dec 31 Sept 30 Dec 31 Dec 31 2011 2011 2010 2011 Ontario 0.12% 0.13% 0.18% 46% BC 0.28% 0.27% 0.30% 16% Alberta 0.40% 0.46% 0.62% 16% Quebec 0.22% 0.22% 0.23% 15% Other 0.17% 0.18% 0.19% 7% Canada 0.20% 0.21%

  9. Slide 9: Continued Profitability

    Continued Profitability $ MM (except EPS) Q4 2011 Q3 2011 Q4 2010 Net premiums written $ 123 $ 160 $ 134 Premiums earned 156 149 156 Losses on claims (62) (54) (50) Underwriting income 68 71 78 Investment income 42 44 44 (excluding gains / losses) Net operating income $ 79 $ 80 $ 84 Operating EPS (d

  10. Slide 10: Solid Progress on Market Penetration

    Solid Progress on Market Penetration Net Premiums Written ($MM) Premiums Earned ($MM) $552 $533 $620 $612 134 123 156 156 166 160 155 149 157 149 154 151 94 101 156 155 2010 2011 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $1.8 B in unearned premiums Genworth MI Canada Inc. 10 Q4 2011 February 3, 2012

  11. Slide 11: Loss and Expense Ratios Within Pricing Range

    Loss and Expense Ratios Within Pricing Range 55% 56% 53%  Total delinquencies 52% 50% Combined 50% 49% declined by 4% 17% 17% 17% Expense 18% 16% 16% 17%  Average reserve per delinquency increased by 14% 38% 39% 37% Loss 32% 33% 36% 33%  Ongoing loss mitigation Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 FY 20

  12. Slide 12: Investment Portfolio Adds Income Stability

    Investment Portfolio Adds Income Stability Preferred, 1% Common, 4% Guar. Fund, 14%  Primarily fixed income Cash, 2%  96% of bonds ‘A’ or better  3.9 year duration Corporates, Federal, Total $5.1B 46% General Fund 17%  $225 MM common and $4.3B preferred equities  4.3% book yield1 Provincial, 16

  13. Slide 13: Strong Capital Position with Flexibility

    Strong Capital Position with Flexibility Minimum Capital Test Ratio  New interest rate risk margin 156% 162% 155% effective in 2012 Internal MCT • 7- point impact to MCT ratio Target 145%  New government guarantee framework expected to be capital neutral 2010 2011 Jan. 1, 2012 • Guarantee fund to

  14. Slide 14: Consistent Performance

    Consistent Performance Disciplined execution Proven business model Solid financial foundation Ongoing profitability and attractive returns Genworth MI Canada Inc. 14 Q4 2011 February 3, 2012

  15. Slide 15: Question and Answer

    Question and Answer SAMANTHA CHEUNG For further info: VP INVESTOR RELATIONS 905 287 5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 15 Q4 2011 February 3, 2012

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