Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q2 2015 Earnings Presentation
15 slides from Sagen MI Canada's earnings presentation, Aug 5, 2015
Slide 1: Second Quarter 2015
Genworth MI Canada Inc. Second Quarter 2015 August 5, 2015
Slide 2: Forward-Looking and Non-IFRS Statements
Forward-Looking and Non-IFRS Statements This presentation relating to Genworth MI Canada Inc. (the “Company”, “Genworth Canada” or “MIC”) includes certain forward-looking statements. These forward-looking statements include, but are not limited to, statements with respect to the Company’s future ope
Slide 3: Q2 2015 Financial Results
Q2 2015 Financial Results $MM except ROE, Q2 Q1 Q2 Q/Q Y/Y Highlights EPS and MCT 2015 2015 2014 Strong top line growth of +28% Y/Y Premiums written $205 $130 $161 +57% +28% Loss ratio of 17%, 5 pt improvement Q/Q Loss ratio 17% 22% 12% -5 pts +5 pts Core operating income flat Q/Q excluding Ne
Slide 4: Stable Delinquency Trend
Stable Delinquency Trend Outstanding Delinquencies Delinquency Rates* Q4’14 Q1’15 Transactional 0.30% 0.31% 1,703 1,708 1,756 1,792 1,666 Portfolio 0.09% 0.08% Prairies 92 102 71 74 97 Total 0.22% 0.22% Atlantic 198 199 207 216 191 * Delinquency rates are based on outstanding insured mortgages as at
Slide 5: Genworth's Served Market
Genworth’s Served Market Average Average Region Average Home Price Gross Debt Income Servicing Genworth Market % Variance Genworth Genworth Vancouver $420K $902K -53% $103K 27% Toronto $447K $617K -28% $105K 29% Calgary $422K $455K -7% $113K 26% Rest of Canada $281K $327K -14% $93K 23% Canada $313K
Slide 6: High Quality Insurance Portfolio
High Quality Insurance Portfolio 742 737 737 Average 733 727 730 727 Credit Score Highlights '10 '11 '12 '13 '14 Q1'15 Q2'15 Steady credit score improvement since 2009 Modest growth in home prices over last five years Average Home Price Gross debt ratios stable, strong preference for 5 year fi
Slide 7: Assessment Of Current Housing Risk
Assessment Of Current Housing Risk Stable Monitoring Metropolitan Risk 2015 Avg. Credit Issues / Trends Area Level NIW* Score** Income gains, low interest rates and population growth Vancouver 7% 745 supporting housing market, risk primarily in high-end segment Lower oil prices impacting housing dem
Slide 8: Underwriting Performance Scorecard
Underwriting Performance Scorecard 2015 2015 Observations Objective YTD New Insurance Written Moderate Transactional Volume 25% Realizing market share gains and a larger Growth origination market while maintaining Average Credit Score > 725 740 strong portfolio quality GDS < 26% 24.1% Losses on Clai
Slide 9: Portfolio Diversification
Portfolio Diversification Effective Loan-to-Value by Book Year 1 Regional Dispersion 1 As At March 31, 2015 As At March 31, 2015 100% Portfolio Q1'15 Transactional 13% 90% 20% 5% < 20% Equity 80% 4% > 20% Equity 14% 70% 60% 44% 50% Alberta Atlantic Ontario 40% B.C. Prairies Quebec Portfolio<=2009 20
Slide 10: Solid Financial Performance
Solid Financial Performance $MM except EPS and BVPS Q2’15 Q1’15 Q2’14 Highlights Transactional premiums written $183 $104 $128 Strong Y/Y top line primarily reflects Portfolio premiums written 22 26 32 market penetration and 2014 Premiums written $205 $130 $160 premium rate increase Premiums earne
Slide 11: Strong Premiums Written Growth
Strong Premiums Written Growth Transactional Premiums Written Incremental Premiums Written and Earned ($ millions) 2014 & 2015 Price Increases on $22 B of Transactional NIW Example ($ millions ) Premiums Written Premiums Earned 183 128 130 130 Q2 100 104 65 71 45 40 Q1 2 15 2014 YTD 2015 YTD Total P
Slide 12: Solid Underwriting Profitability
Solid Underwriting Profitability Underwriting Profitability ($millions) Highlights Premiums earned $141 $140 $143 $143 $144 Losses on claims 17 31 25 30 37 YTD loss ratio of 19% compared to full 27 29 24 24 year loss ratio range of 20 to 30% Expenses 30 Favourable Q/Q loss performance driven Und
Slide 13: Investments Contribute Steady Income
Investments Contribute Steady Income Highlights Focus on high quality investments Preferred Equity Cash 3% 5% Diversified portfolio with over 50% Common Equity 1% government securities and cash Corporates 40% Reduced common shares in favour of Federal preferred shares 34% Total $5.7 billion Po
Slide 14: Strong Capital Position
Strong Capital Position Minimum Capital Test Ratio (MCT) 231% 233% 231% Highlights 224% 225% Completed $50 million share buyback in Q2’15 46% 40% 48% 46% 39% Holding company cash and liquid securities of $105 million Intend to operate moderately above the 220% 185% 185% 185% 185% 185% MCT hold
Slide 15: Question and Answer
Question and Answer Contact: Philip Mayers Chief Financial Officer 905.287.5393 philip.mayers@genworth.com investor@genworth.com www.genworth.ca Genworth MI Canada Inc. 15 Q2 2015