Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q3 2017 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Nov 2, 2017
Slide 1: Third Quarter 2017 Results
Third Quarter 2017 Results November 2nd, 2017 Q3 2017 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: 3Q17 financial results
3Q17 financial results $MM except ROE, Q3 Q2 Q3 EPS & MCT 2017 2017 2016 Q/Q Y/Y Q3 key highlights Premiums written $202 $170 $223 +19% -9% Premiums earned $170 $168 $162 +1% +5% • Transactional premiums written of $195MM; on ~$6B of NIW • Portfolio premiums written of $6MM; on ~$850MM of NIW Loss r
Slide 4: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $619 $21.2 $41.9 $4.9 Q4 $149 Q4 $5.1 $445 $6.5 $13.7 $140 Q3 $201 Q3 $6.9 $195 $22 $5.6 $22 $25.9 $12.5 Q2 $0.8 Q2 $170 $53 $5.8 $1.1 $161 $6 $5.0 $78 $8 Q1 $3.4 $10.5 Q1 $99 $8
Slide 5: Our environment today
Our environment today Key takeaways Risk Assessment Canada 2017 GDP projection revised to 3.1%1 (up from 2.8%) Stable to improving economic forecast for most regions Economic Overnight lending rate increased 25 bps to 1.00% Increased risk related to NAFTA renegotiation Government changes h
Slide 6: Housing risk
Regional risk assessment Quarterly Snapshot TOR VAN MTL CGY Q3’17 Q/Q Teranet HPI -7.5%1 6.7% 1.8% 1.2% Q3’17 UE Rate 6.1% 4.5% 6.5% 8.5% High GTA Key Indicators Overvaluation GVA Affordability Housing risk Ontario Price-to- (ex GTA) Pacific income (ex GVA) Supply/ Prairies demand Alberta At
Slide 7: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) % Score <660 (R) Avg score (L) $332 $330 $328 $327 $326 $322 $317 $315 $315 745 11% $304 $301 $296 727 1.2% $284 3% 0.4% '10 '11 '12 '13 '14 '15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 '10 '11 '12 '13 '14
Slide 8: Delinquency trends
Delinquency trends Delinquencies outstanding New delinquencies, net of cures, by region Total 493 491 Total 2,027 2,070 2,082 Prairies1 33 436 50 Q/Q 1,809 Atlantic 66 33 Prairies1 201 203 212 1,759 101 337 ∆ 235 Quebec 93 77 Atlantic 211 259 205 205 25 -3 204 214 109 70 +44 Quebec 504 521 517 128 1
Slide 9: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q3’17 Q2’17 Q3’16 Q3 highlights Transactional premiums written $195 $161 $201 • Transactional premiums written lower by 3% Y/Y, due to 18% lower NIW, partly offset by higher Portfolio premiums written 6 8 22 average premium rate • Premiums earned in
Slide 10: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) Highlights • Continued Q/Q growth in premiums earned Premiums earned $162 $164 $167 $168 $170 6 23 • Q3 loss ratio of 13%; Q/Q increase driven primarily by: 29 26 31 Losses on claims 41 • 182 higher new delinquencies, net of cu
Slide 11: Investments contribute steady income
Investments contribute steady income Net Investment Income Total Invested Assets ($6.5B portfolio1) (excluding realized/unrealized gains, $ millions) $176 15% Q4 $46 $135 Federals Duration: 3.9 years Book yield: 3.1%2 Provincials Invested assets Q3YTD Investment grade 30% (C$ millions, unless noted)
Slide 12: Capital management
Capital management Regulatory capital as at Sept. 30th, 2017 (by category, $ billions unless otherwise noted) Highlights ~4.1 ~4.1 ~0.3 Proactive, yet prudent capital Capital in excess of 150% ~0.4 management actions: 0.4 0.5 Operational Risk Market Risk1 0.2 0.2 • Increased dividend by 7% • Execute
Slide 13: Key takeaways
Key takeaways Keen focus on risk management Proven Balanced approach to writing new business business model has positioned MIC for Proactive loss mitigation future programs performance Investing in our customer experience strategy Q3 2017 Results Genworth MI Canada Inc. 13
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 Q3 2017 Results Genworth MI Canada Inc. 14