Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q3 2011 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Nov 4, 2011
Slide 1: Third Quarter 2011
Genworth MI Canada Inc. Third Quarter 2011 November 4, 2011
Slide 2: Q3 2011 Review of Performance
Q3 2011 Review of Performance Brian Hurley Stuart Levings Philip Mayers Genworth MI Canada Inc. 2 Q3 2011 November 4 2011
Slide 3: Forward-Looking and Non-IFRS Statements
Forward-Looking and Non-IFRS 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 e
Slide 4: Consistent third quarter 2011
Consistent third quarter 2011 Net operating income $80 MM Return on equity 13% Operating earnings per share (diluted) $0.81 Book value per share (diluted) $26.82 Genworth MI Canada Inc. 4 Q3 2011 November 4 2011
Slide 5: Solid underlying market fundamentals
Solid underlying market fundamentals Housing market is balanced Demand being supported by low rate environment Tempered consumer confidence Improved borrower profile Stable home price environment with regional influences Genworth MI Canada Inc. 5 Q3 2011 November 4 2011
Slide 6: Delivering strong results
Delivering strong results Priorities Q3 2011 Premium growth Net premiums written of $160 MM Prudent risk management Loss ratio of 36% General Investment portfolio return Book yield of 4.3% Capital strength 161% MCT vs. 145% internal target Common dividend $0.29 per share - 12% increase Genworth MI C
Slide 7: Improving delinquency rate
Improving delinquency rate Mortgage insurance portfolio Insurance delinquency rate in-force Sept 30 June 30 Sept 30 Sept 30 2011 2011 2010 2011 Ontario 0.13% 0.17% 0.17% 46% BC 0.27% 0.31% 0.27% 16% Alberta 0.46% 0.53% 0.58% 16% Quebec 0.22% 0.23% 0.21% 15% Other 0.18% 0.19% 0.19% 7% Canada 0.21% 0.
Slide 8: Solid third quarter results
Solid third quarter results $ MM (except EPS) Q3 2011 Q2 2011 Q3 2010 Net premiums written $ 160 $ 149 $ 166 Premiums earned 149 151 155 Losses on claims (54) (50) (47) Underwriting income 71 77 83 Investment income 44 43 45 (excl. gains / losses) Net operating income $ 80 $ 81 $ 91 Operating EPS (d
Slide 9: Consistent top line performance
Consistent top line performance Net Premiums Written ($MM) Premiums Earned ($MM) $417 $410 $465 $456 YTD net premiums written Large books past peak down marginally earnings years Genworth MI Canada Inc. 9 Q3 2011 November 4 2011
Slide 10: Loss ratio within pricing range
Loss ratio within pricing range 55% 55% 50% 52% Combined 47% 49% 47% Expense Loss Genworth MI Canada Inc. 10 Q3 2011 November 4 2011
Slide 11: Investment portfolio adds income stability
Investment portfolio adds income stability Preferred, 1% Common, 4% Guar. Fund, 14% Primarily fixed income Cash, 2% 96% of bonds ‘A’ or better 3.9 year duration Corporates, Total $5.1B Federal, 46% General Fund 17% $217 MM common and $4.4B preferred equities 4.3% book yield Provincial, 16%
Slide 12: Strong capital position with flexibility
Strong capital position with flexibility Priorities Sound regulatory capital MCT ratio of 161% Growth Debt to total capital ratio of 14% Dividends 12% quarterly dividend increase Efficient capital structure $0.50/share special dividend Genworth MI Canada Inc. 12 Q3 2011 November 4 20
Slide 13: MIC delivers consistent performance
MIC delivers consistent performance Disciplined execution Proven business model Solid financial foundation Genworth MI Canada Inc. 13 Q3 2011 November 4 2011
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 Q3 2011 November 4 2011