Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2019 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Apr 30, 2019
Slide 1: First Quarter 2019 Results
First Quarter 2019 Results April 30th, 2019 Q1 2019 Results Genworth MI Canada Inc. 1
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”, “Genworth Canada” or “MIC”) often contain certain forward-looking statements. These forward-looking statements include, b
Slide 3: 1Q19 financial results
1Q19 financial results $MM except loss ratio, Q1 Q4 Q1 Op. ROE, Op. EPS & 2019 2018 2018 Q/Q Y/Y Q1 key highlights MICAT/MCT ratio Premiums written $105 $156 $115 -32% -9% • Total premiums written decreased Y/Y primarily due to the carry-over impact in 1Q18 of higher mortgage insurance Premiums earn
Slide 4: Our environment today
Our environment today Risk Assessment Denotes change from Q4’18 Key observations ▪ GDP forecast for 20191 reduced to 1.2% (from 1.7%), reflecting slower than expected global growth and ongoing trade tensions Economic ▪ Growth expected to pick up in the second half of 2019 ▪ BoC overnight rate mainta
Slide 5: Regional risk assessment
Regional risk assessment Quarterly Snapshot TOR VAN MTL CGY CANADA Q1’19 Q/Q Teranet HPI 1 0.0% -1.9% 0.7% -1.7% -0.7% Q1‘19 UE Rate 1 6.6% 4.8% 5.7% 7.5% 5.8% High Denotes change from Q4’18 Size of circle reflects regional total risk-in-force Key Indicators riskRisk ▪ Overvaluation Ontario (ex GTA)
Slide 6: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $17.8 $619 Q4 $151 Q4 $4.3 $4.2 Q3 $5.5 Q3 $192 $1.1 $20 $0.8 $5 Q2 $4.8 Q2 $166 $4 $1.1 $5 Q1 $3.2 $2.9 $1.2 $1.0 Q1 $109 $100 $6 $5 2018 2019 2018 2019 2018 2019 2018 2019 Aver
Slide 7: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) % Score <660 Avg score Q2’18 reflects typical increase in QC business mix $350 $342 $341 $336 $327 $324 $323 $322 $315 $304 $301 $296 $284 748 9.8% 1.0% 727 2.2% 0.3% '10 '11 '12 '13 '14 '15 '16 '17 Q1'18 Q2
Slide 8: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q1’19 Q4’18 Q1’18 Q1 highlights Transactional premiums written $100 $151 $109 • Transactional premiums written lower by Portfolio premiums written 5 5 6 8% Y/Y, primarily due to lower NIW • Premiums earned flat Q/Q Total premiums written $105 $156 $
Slide 9: Delinquency trends
Delinquency trends Outstanding delinquencies New delinquencies, net of cures, by region Q/Q ∆ 405 Total 1,723 1,742 1,760 Total 365 360 1,695 1,684 59 +7 241 258 Prairies1 58 45 328 326 Prairies1 246 247 244 42 52 73 +19 Atlantic 230 229 206 192 215 67 Atlantic 78 47 326 54 46 -18 Quebec 370 368 349
Slide 10: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) Highlights Premiums earned $171 $171 $169 $169 $169 Losses on claims 22 25 23 25 30 32 Expenses 33 32 32 33 • Full year 2019 premiums earned are expected to be flat to modestly lower Y/Y due to relatively smaller recent books N
Slide 11: Investments contribute steady income
Investments contribute steady income Total investments and net derivative assets ($6.5B1) Interest rate hedge program Investments: $6.5B Interest rate swaps Forward curve5 Notional (C$B) $3.5 13% Floating rate5 1.75% - 2.00% Federals Duration: 3.7 years Fixed rate5 1.17% Book yield: 3.2%2 Spread ~0.
Slide 12: Capital management
Capital management Regulatory capital as at Mar. 31st, 2019 (by category, $ millions unless otherwise noted)* Highlights MICAT ▪ Strong capital position with MICAT ratio of Mar. 31st, 2019 Jan. 1st, 2019 172% and ample financial flexibility including holding company cash and liquid Capital available
Slide 13: Key strategic priorities
Key strategic priorities 1 2 3 4 5 Drive market Continue to Develop Right-size Influence key share growth exercise innovative our capital government by leveraging prudent risk product levels to stakeholders to advanced management solutions to drive focus on first analytics and and proactive enhance
Slide 14: Investor Relations
Jonathan A. Pinto, MBA, LL.M Vice President, Investor Relations 905.287.5482 jonathan.pinto@genworth.com Investor Relations investor.genworthmicanada.ca investor@genworth.com Q1 2019 Results Genworth MI Canada Inc. 14