Helia Group Limited · ASX:HLI
Helia — Genworth Mortgage Insurance Australia — Q3 2014 Earnings Presentation
16 slides from Helia's earnings presentation, Nov 6, 2014
Slide 1: 3Q 2014 Financial results presentation
Genworth Mortgage Insurance Australia 3Q 2014 Financial results presentation 06 November 2014 ©2014 Genworth Mortgage Insurance Australia Limited. All rights reserved.
Slide 2: Disclaimer
Disclaimer This presentation contains general information in summary form which is current as at 30 September 2014. It may present financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standard
Slide 3: Overview of 3Q14 financial performance
Overview of 3Q14 financial performance Solid third quarter financial performance Underlying pro forma NPAT1 of $70.2m for the quarter ended 30 September 2014. – Reported Net Profit After Tax (NPAT) of $64.0m includes $6.2m of post tax mark to market losses. New Insurance Written (NIW) of $9.8bn
Slide 4: 3Q 2014 pro-forma income statement
3Q 2014 pro-forma income statement Strong housing and stable economic conditions have supported solid performance FY14 (A$ millions) Q313 Q314 Change YTD ‘13 YTD ‘14 Change F’cast2 Gross written premium 149.6 157.5 5.3% 422.7 471.2 11.5% 663.2 Movement in unearned premium (29.3) (26.6) (9.2%) (73.6)
Slide 5: New insurance written
New insurance written New business mix reflecting policy changes since 2009 Total NIW by LVR band (quarterly) NIW by product type (quarterly) $ billions, % $ billions, % 9.4 41.0% 9.6 9.8 9.8 8.8 8.7 8.6 9.4 9.6 36.3% 8.8 8.7 8.6 7.6 34.7% 35.8% 26.6% 7.6 35.5% 34.2% 30.9% 38.0% 48.1% 41.1% 47.5% 44
Slide 6: Gross written premium
Gross written premium Price increases offset by shift in LVR mix Total GWP and Flow average price (Flow GWP / Flow NIW) $ millions, % 1.82% 1.84% 1.82% 1.80% 1.70% 1.72% 1.67% 173.8 159.7 157.5 149.6 153.9 145.4 127.7 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 GWP Average Premium GWP growth of 5.3% vs. pc
Slide 7: Delinquency development
Delinquency development Favourable performance post 2009 with usual seasonal trends 2004 The post 2009 book years continue to 2005 1.40% perform favourably relative to the 2006 previous three years at an equivalent point of development, led by tightened 1.20% 2007 underwriting criteria and premium
Slide 8: Net incurred claims
Net incurred claims Lower level of delinquencies flowing through to MIP and lower average claim size Average paid claim Average reserve per delinquency $ thousands $ thousands 48.7 48.6 48.4 81.4 80.3 79.9 47.9 71.5 65.1 60.5 58.6 44.4 43.3 41.7 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 1Q 13 2Q 13 3Q 13 4
Slide 9: Insurance ratio analysis
Insurance ratio analysis Expenses Combined ratio $ millions, % $ millions, % 74.7% 65.2% 27.8% 28.6% 27.9% 53.4% 51.2% 47.8% 27.4% 26.3% 46.4% 41.3% 26.0% 25.3% 26.0 16.7 18.7 17.6 27.1 26.5 30.8 15.7 15.3 29.5 14.7 14.9 29.6 27.4 44.7 36.6 11.4 11.7 12.9 12.1 12.0 11.9 28.1 25.6 24.0 11.2 18.5 17.3
Slide 10: Q3 2014 regulatory capital position
Q3 2014 regulatory capital position Improved solvency from strong performance and seasoning of old books Level 21 (A$ in millions) 31 Dec 13 30 Jun 14 30 Sep 14 Capital Base Common Equity Tier 1 Capital 2,440.0 2,598.7 2,654.2 Tier 2 Capital 126.0 112.0 112.0 Regulatory Capital Base 2,566.0 2,710.7
Slide 11: Genworth Australia 2014 full year outlook
Genworth Australia 2014 full year outlook Based on pro forma financial information as set out in the prospectus Key measures - full Year 2014 financial guidance IPO prospectus Revised target Flow NIW ($ billions) $33.8 bn $35.0bn - $36.0bn Portfolio NIW ($ billions) $4.0 bn $2.0bn - $3.0bn Average p
Slide 12: Supplementary Slides
Supplementary Slides
Slide 13: Pro forma income statement reconciliation – Q3'14
Pro forma income statement reconciliation – Q3’14 Reconciling to the USGAAP figures reported by Genworth Financial, Inc. USGAAP AU Add Back: Non USGAAP AU USGAAP AU Adjustments GMA Segment Controlling Segment Segment Total Group pro Results in Interest Results + Results + (a) (b) (c) (d) Adjust. USD
Slide 14: Quarterly pro forma financial information
Quarterly pro forma financial information Pro forma statement of comprehensive income (A$ in millions) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Gross written premium 127.7 145.4 149.6 173.8 159.7 153.9 157.5 Movement in unearned premium (14.8) (29.6) (29.3) (51.4) (32.6) (25.0) (26.6) Gross earned premium
Slide 15: Quarterly pro forma financial information
Quarterly pro forma financial information Financial ratios 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Loss ratio 47.2% 37.5% 27.4% 17.8% 15.9% 23.2% 21.4% Expense ratio 27.4% 27.8% 26.0% 28.6% 25.3% 27.9% 26.3% Combined Ratio 74.7% 65.2% 53.4% 46.4% 41.3% 51.2% 47.8% Insurance Margin 30.5% 40.9% 55.8% 60.3%
Slide 16: Delinquency development
Delinquency development Quarterly delinquency roll and delinquency composition Delinquency Roll 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Opening balance 5,851 5,868 5,820 5,454 4,980 5,070 5,405 New delinquencies 2,928 3,095 2,901 2,383 2,689 2,913 2,734 Cures (2,189) (2,594) (2,757) (2,276) (2,137) (2,15
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