Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Investor Presentation (August 2009)
12 slides from Sagen MI Canada's investor presentation, Aug 13, 2009
Slide 1: Genworth MI Canada
Genworth MI Canada August, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that relate to the company’s current expectations and views of future events. These forward-looking statements may be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “int
Slide 3: Non-GAAP Measures
Non-GAAP Measures To supplement its financial statements, the Company uses select non-GAAP financial measures. Non-GAAP measures used by the Company to analyze performance include underwriting ratios such as loss ratio, expense ratio and combined ratio as well as other performance measures such as o
Slide 4: Successful Initial Public Offering
Successful Initial Public Offering • One of Canada’s largest IPOs in recent years • Strengthens our market position • Improved visibility with customers • Well-positioned and well-capitalized to execute growth • Improves financial flexibility 3
Slide 5: Strong Business Foundation
Strong Business Foundation • Experienced leadership team • 12 consecutive years of profitable growth • Strong relationships with the largest lenders • Debt-free balance sheet • Conservative investment portfolio Delivered $69 MM in Net Operating Income & Solid Returns 4
Slide 6: Understanding Mortgage Insurance ("MI")
Understanding Mortgage Insurance (“MI”) Overview Illustrative Example Mandatory on loans with LTV > 80% House price $275,000 Down payment 10% $27,500 MI protects lenders against losses if the borrower defaults Mortgage loan $247,500 Covers 100% of loan amount, secured by property 9 Lender buys MI on
Slide 7: Q2 Highlights & Key Metrics
Q2 Highlights & Key Metrics Executing in a challenging economic environment • Net premiums earned of $153 million • Net premiums written of $82 million Net operating income: $69 million • Losses of $71 million Fully Diluted EPS: $0.60 • Combined ratio of 62% • Investment income of $51 million 6
Slide 8: Comprehensive Risk Management
Comprehensive Risk Management Enterprise Risk Management Portfolio Analytics Quality Assurance Underwriting Guidelines Loss Mitigation Investment Policy & Loan-By-Loan Underwriting Regulatory Compliance 7
Slide 9: Insurance In-Force By Geography
Insurance In-Force By Geography Delinquency Rate Ontario 48% 0.30% BC 16% 0.21% Alberta 15% 0.47% Quebec 14% 0.29% Other1 7% June 30, 2009 Insurance in Force $217 Billion Notes: (1) Other includes Nova Scotia (0.29%), Saskatchewan (0.13%), Manitoba (0.12%), New Brunswick (0.25%), and all other (0.15
Slide 10: Appealing Financial Model
Appealing Financial Model • Single premium paid upfront … Cash invested • Recognized as premiums earned principally over five years … Unearned premiums of $2.1 billion • Matches premiums earned to losses Premiums • 90% of unearned premiums expected to be earned over next 5 years Losses • Strong Capi
Slide 11: High Quality Investment Portfolio
High Quality Investment Portfolio Investment Portfolio1 (6/30/09) Cash or Investments Asset Other General Rated A or Higher3 98% Backed 0.5% Cash 5.0% 10.3% GF Cash Guarantee Cash or Investments 4.2% Fund Rated AAA3 46% $551MM GF Fed Fixed Inc Duration3 3.3 Years 9.3% Corporate Book Yield3 4.2% Fixe
Slide 12: Track Record of Growth and Profitability
Track Record of Growth and Profitability Combined Ratio Underwriting & Investment Income 70% 180 63% 62% 160 148 60% 54% 140 20% 15% 124 50% 13% 120 111 110 41% 71 39% 40% 100 46 96 14% 43 51 15% 80 30% 44 46% 60 20% 42% 41% 40 77 78 24% 27% 68 10% 52 59 20 0% - 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 2Q'08 3
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