Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Q3 2009 Earnings Presentation
18 slides from Sagen MI Canada's earnings presentation, Oct 30, 2009
Slide 1: Third Quarter Financial Results
Third Quarter Financial Results October 30, 2009
Slide 2: Agenda
Agenda • Business Strategy and Outlook • Financial Review • Operational Highlights • Question and Answer Session 1
Slide 3: 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 4: 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 5: Business Update
Business Update Brian Hurley, Chairman and CEO
Slide 6: Our Strategy is Delivering Results
Our Strategy is Delivering Results Deepen Lender Relationships Maintain Strong Capital Base Continued Focus on Risk Deliver Solid Returns to Management Shareholders Third Quarter 2009 Results Net Operating Income: $75 million Operating EPS: $0.63 ROE: 12% 5
Slide 7: Improving Trends
Improving Trends Slowing Job Losses Market Conditions Strong Housing Market Increasing Consumer Confidence Improving Risk Profile Business Execution Strong Loss Mitigation Results Key Lender Penetration 6
Slide 8: Financial Review
Financial Review Philip Mayers, CFO
Slide 9: Q3 Financial Results
Q3 Financial Results Improving Premiums Written and Lower Losses on Claims $ Millions Except EPS • Net premiums written: $104 Net Income: $79 • Net premiums earned: $154 Net Operating Income: $75 • Losses on Claims: $64 Operating EPS: $0.63 • Investment income: $431 10% Sequential Increase in Net Op
Slide 10: Solid Financial Performance
Solid Financial Performance Improving Underwriting Results … 70% 63% 1 62% 57% 54% 60% Expense 20% 15% 50% 13% 15% Ratio 41% 40% 30% 14% Higher Net Operating Income 20% 42% 41% 46% 42% Loss 100 $MM 27% 10% Ratio 0% 80 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 60 1 40 85 77 75 74 69 Stable Investment Income2 … 2
Slide 11: Delinquencies Are Improving And Stabilizing
Delinquencies Are Improving And Stabilizing September 30, 2009 Insurance in Force $220 Billion Delinquency Rate 30-Sept-08 30-June-09 30-Sept-09 Ontario 48% 0.22% 0.30% 0.25% BC 16% 0.11% 0.21% 0.23% Alberta 15% 0.24% 0.47% 0.50% Quebec 14% 0.25% 0.29% 0.29% Other1 7% Total Delinquency 0.21% 0.30% 0
Slide 12: High Quality Investment Portfolio
High Quality Investment Portfolio Total: $5.0 Billion • Diversified High Quality Portfolio 98% Cash or Investments Rated A or Higher Positive AOCI of $104 million • No Impairments • Initiatives Underway To Reduce Cash Enhance Yield While Maintaining Portfolio Quality Average Duration: 3.2 years Book
Slide 13: Strong Capitalization Continues
Strong Capitalization Continues Regulatory Minimum Capital Test (MCT) Shareholders’ $1.99 $2.09 $2.25 $2.37 $2.59________ Equity ($ Billions) Positioned For Growth Going Forward 12
Slide 14: Operational Highlights
Operational Highlights Peter Vukanovich, President and COO
Slide 15: Executing our Lender Strategy
Executing our Lender Strategy • Multi-Faceted Customer Relationships Interactive Lender Training Initiatives Realigned Customer Teams and Processes • Faster Turn-Around Times • Investment in Next Generation Underwriting Technology Increased Mortgage Application Flow 14
Slide 16: Loss Mitigation is a Key Differentiator
Loss Mitigation is a Key Differentiator • Expanded Homeownership Assistance Program • Increased Lender and Homebuyer Awareness • Strengthened Partnership With Lenders • Market Specific Claims Management Strategy Improving Losses on Claims 15
Slide 17: Summary
Summary • Strong Business Execution • Improving Economic Conditions • Pro-active Risk Management • Solid Capital Structure • Best in Class Customer Service Well-Positioned To Deliver Strong Returns 16
Slide 18: Question and Answer Session
Question and Answer Session October 30, 2009