Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2020 Earnings Presentation
13 slides from Sagen MI Canada's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results May 6th, 2020 Q1 2020 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: 1Q20 financial results
1Q20 financial results $MM except loss ratio, Q1 Q4 Q1 Q1 key highlights Op. ROE, Op. EPS & Q/Q Y/Y MICAT ratio 2020 2019 2019 Premiums written $114 $183 $105 -38% +8% • Total premiums written increased Y/Y by 8% primarily Premiums earned $171 $171 $169 - +1% due to increased housing market activity
Slide 4: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio Q4 $177 Q4 $5.1 $1.3 Q3 $213 Q3 $6.1 $1.3 $5 Q2 Q2 $187 $6 $5.3 $2.4 $8 Q1 $2.9 $3.2 Q1 $100 $110 $5 $4 2019 2020 2019 2020 2019 2020 2019 2020 Q1 Average premium rate Q1 Average
Slide 5: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) % Score <660 Avg score $369 $356 $350 $349 $335 $331 $327 $324 $322 $315 $304 $301 $296 $284 9.8% 749 1.0% 727 2.2% 0.1% '10 '11 '12 '13 '14 '16 '17 '18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 '15 '10 '11 '12 '13 '14
Slide 6: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q1’20 Q4’19 Q1’19 Q1 highlights Transactional premiums written $110 $177 $100 Portfolio premiums written 4 5 5 • Transactional premiums written were higher Total premiums written $114 $183 $105 by 10% Y/Y on increased housing activity Premiums earne
Slide 7: Delinquency trends
Delinquency trends Outstanding delinquencies New delinquencies, net of cures, by region Total 405 Q/Q Total 1,760 1,761 1,798 1,754 385 ∆ 1,701 373 59 Prairies1 258 242 258 273 Prairies1 48 64 240 226 73 281 284 Atlantic 215 199 221 227 69 51 Atlantic 34 295 293 46 55 -9 Quebec 326 275 278 58 48 75
Slide 8: Investments
Investments Total investments and net derivatives Operating Investment Income ($6.1B1) (excluding realized/unrealized gains, $ millions) Duration: 3.5 years Book yield: 3.3%2 $55 Market Book Q4 Portfolio ($MM) MTM6 % Value Value Q3 $57 Cash & other4 $352 $352 - 6% Q2 $56 Q1 $57 $54 Federals 1,953 1,
Slide 9: Capital management
Capital management Regulatory capital as at March 31st, 2020 (by category, $ millions unless otherwise noted)* Highlights March 31st, 2020 Dec. 31st, 2019 • Strong capital position with MICAT ratio of MICAT & Holdco Cash ~172% Capital available 3,923 4,186 • Holding company cash and liquid investmen
Slide 10: COVID-19 Financial Measures
COVID-19 Financial Measures Key Measures Impacting Mortgage Market Impact BoC lowered the overnight rate by 150 basis points to 25 basis points. BoC purchasing Canada Mortgage Bonds, backed by insured mortgages, up to $500 million per week • Supporting liquidity and smooth functioning of financial m
Slide 11: Potential Economic Scenarios
Potential Economic Scenarios Base Assumptions Downside Assumptions GDP • Short but severe economic correction in 1H’20 • Deeper economic shock and slower recovery as health • Recovery begins in Q3 as the health crisis subsides crisis extends into 2H’20 with slower recovery for oil-producing regions
Slide 12: Revised 2020 performance objectives
Revised 2020 performance objectives Lower total premiums written on smaller transactional market size due to impact of COVID-19, partially offset by the anticipated increase in portfolio insurance opportunities Modestly lower premiums earned due to the expected decrease in premiums written Loss rati
Slide 13: Investor Relations
Aaron Williams, CPA, CA Vice President, Finance/Investor Relations 905.287.5504 aaron.williams@genworth.com Investor Relations investor.genworthmicanada.ca investor@genworth.com Q1 2020 Results Genworth MI Canada Inc. 13