Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2012 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, May 2, 2012
Slide 1: First Quarter 2012
Genworth MI Canada Inc. First Quarter 2012 May 2, 2012
Slide 2: Speakers
Speakers Brian Hurley Philip Mayers Genworth MI Canada Inc. 2 Q1 2012 May 2, 2012
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
Slide 4: Steady business performance
Steady business performance Q1 2012 Q4 2011 Q1 2011 Net operating income $76 MM $79 MM $78 MM Return on equity 12% 13% 13% Operating earnings per share $0.77 $0.80 $0.73 (diluted) Book Value Per Share (Diluted, including AOCI) 26.94 27.31 24.79 Q1 2011 Q4 2011 Q1 2012 Genworth MI Canada Inc. 4 Q1 20
Slide 5: Stabilizing economic environment
Stabilizing economic environment Slowing home price appreciation - Balanced market conditions - Flat outlook for remainder of 2012 Smaller high loan-to-value market - Government guarantee product changes - Fewer refinance transactions Continued strong borrower quality - Stable debt ratios - Im
Slide 6: Improving delinquency rate
Improving delinquency rate Mortgage insurance portfolio Insurance delinquency rate in-force Mar 31 Dec 31 Mar 31 Mar 31 2012 2011 2011 2012 Ontario 0.11% 0.12% 0.18% 46% BC 0.24% 0.28% 0.31% 16% Alberta 0.35% 0.40% 0.59% 16% Quebec 0.24% 0.22% 0.26% 15% Other 0.17% 0.17% 0.19% 7% Canada 0.19% 0.20%
Slide 7: Delivering solid results
Delivering solid results Priorities Q1 2012 Premiums Net premiums written of $79 MM Net earned premiums of $147 MM Prudent risk management Loss ratio of 38% Investment portfolio $43 MM income and book yield of 4.3% Capital strength 159% MCT vs. 145% internal target Dividends to shareholders Competit
Slide 8: Continued profitability
Continued profitability $ MM Q1 2012 Q4 2011 Q1 2011 (except EPS and BVPS) Net premiums written $ 79 $ 123 $ 101 Premiums earned 147 156 155 Losses on claims (56) (62) (59) Underwriting income 65 68 71 Investment income 43 42 43 (excluding gains / losses) Net operating income $ 76 $ 79 $ 78 Operatin
Slide 9: Top line performance
Top line performance Gross Premiums Written High Loan-to-Value Insured Mortgages ($MM) 12 VPY% Quarter volumes impacted by normal winter seasonality Refinances 20 9 -54% Smaller high ratio loan to value 109 mortgage market Purchases 78 69 -11% Solid and growing market penetration Q1 ‘11 Q4 ‘11
Slide 10: Consistent underwriting results
Consistent underwriting results Underwriting Profit ($MM) Premiums Earned $155 $156 $147 Losses on Claims 59 62 56 Premiums earned moderating Expenses 26 26 Loss ratio of 38% within pricing target 26 range of 35 to 40% U/W Profit 71 68 65 Generates steady underwriting profits Q1 2011 Q4 2011 Q
Slide 11: Investment portfolio adds income stability
Investment portfolio adds income stability Preferred, 0.4% Common, 6% Guar. Fund, 15% Primarily fixed income Cash, 2% 96% of bonds ‘A’ or better Corporates, Total $5.0B Federal, 3.7 year duration 46% General Fund 15% $4.2B $303 MM common and preferred equities 4.3% book yield1 Provincial,
Slide 12: Strong capital position with flexibility
Strong capital position with flexibility Minimum Capital Test Ratio Strong capital flexibility 162% 155% 159% − In-force profitability Internal MCT − Capital well above 145% internal target Target − Debt capacity 145% Capital management priorities − Efficient capital structure Q1 2011 Q4 2011 Q1
Slide 13: Ongoing profitability
Ongoing profitability Disciplined execution Proven business model Solid financial foundation Sustainable levels of activity to support steady profitability Genworth MI Canada Inc. 13 Q1 2012 May 2, 2012
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 Q1 2012 May 2, 2012