Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q2 2011 Earnings Presentation

14 slides from Sagen MI Canada's earnings presentation, Jul 29, 2011

  1. Slide 1: Second Quarter 2011

    Genworth MI Canada Inc. Second Quarter 2011 July 29, 2011

  2. Slide 2: Q2 2011 Review of Performance

    Q2 2011 Review of Performance Brian Hurley, Chief Executive Officer Philip Mayers, Chief Financial Officer Stuart Levings, Chief Risk Officer Genworth MI Canada Inc. 2 Q2 2011 July 29, 2011

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

    Forward-Looking and Non-IFRSs 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

  4. Slide 4: Second quarter 2011 – Snapshot

    Second quarter 2011 – Snapshot Net operating income $81 MM Return on equity 13% Operating earnings per share (diluted) $0.77 Delivered book value growth of 9% year over year Genworth MI Canada Inc. 4 Q2 2011 July 29, 2011

  5. Slide 5: Market environment

    Market environment  Housing market supply and demand balanced  Strong first time home buying intentions  Job growth is a positive for housing market  Borrower affordability pressured Outlook remains positive for our business Genworth MI Canada Inc. 5 Q2 2011 July 29, 2011

  6. Slide 6: Government guarantee legislation

    Government guarantee legislation  No change in government guarantee  Formalize and strengthen Minister of Finance oversight  Reinforces the stability of Canadian housing finance  Legislation effective date TBD Genworth MI Canada Inc. 6 Q2 2011 July 29, 2011

  7. Slide 7: Delivering strong results to investors

    Delivering strong results to investors Priorities Q2 Results Premium growth Net premiums written of $149 MM Prudent risk management Loss ratio of 33% Investment portfolio return Book yield of 4.3% Capital strength 158% MCT Common dividend $0.26 payable per common share Genworth MI Canada Inc. 7 Q2 2

  8. Slide 8: Second quarter performance

    Second quarter performance $ MM (except EPS) Q2 2011 Q1 2011 Q2 2010 Net premiums written $ 149 $ 101 $ 157 Premiums earned 151 155 154 Losses on claims (50) (59) (49) Underwriting income 77 71 80 Investment income 43 43 42 (excl. gains / losses) Net operating income $ 81 $ 78 $ 86 Operating EPS (di

  9. Slide 9: Top line performance consistent

    Top line performance consistent Net Premiums Written ($MM) Premiums Earned ($MM) $252 $250 $310 $307 154 151 157 149 101 156 155 94 2010 2011 2010 2011 Q1 Q2 Q1 Q2 YTD net premiums written Large books past peak flat year over year earnings years Genworth MI Canada Inc. 9 Q2 2011 July 29, 2011

  10. Slide 10: Lower delinquency rate

    Lower delinquency rate Mortgage insurance portfolio Insurance delinquency rate in-force June 30 March 31 Dec 31 June 30 2011 2011 2010 2011 Ontario 0.17% 0.18% 0.18% 46% BC 0.31% 0.31% 0.30% 16% Alberta 0.53% 0.59% 0.62% 16% Quebec 0.23% 0.26% 0.23% 15% Other 0.19% 0.19% 0.19% 7% Canada 0.25% 0.27%

  11. Slide 11: Investment portfolio adds income stability

    Investment portfolio adds income stability  Primarily fixed income with 96% of bonds rated ‘A’ or Preferred,1 % Common, 3% Guar. Fund, 14 % better Cash, 3%  Duration of 3.9 years Corporates, Total - $5.0B Federal, 47% General Fund 17% - $4.3B  $210 MM of common and preferred equities Provincial,

  12. Slide 12: Strong capital position with flexibility

    Strong capital position with flexibility Capital Base (MM) Public Company  Debt to total capital ratio of 14% Shareholders’ equity (excl. AOCI) $2,413 Debt 422 Holding Co. net investments1 (99)  MCT ratio of 158% Insurance Company Capital base (excl. AOCI) 2736 Guarantee fund (net of tax effect) (

  13. Slide 13: MIC delivering sustainable value

    MIC delivering sustainable value  Prudent underwriting Disciplined execution  Deep lender relationships  Capital efficiency  Geographically diverse Proven business model  Solid investment portfolio  $1.8 billion unearned premiums  Proactive risk management Solid foundation  Strong capital po

  14. Slide 14: 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. 14 Q2 2011 July 29, 2011

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