Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q4 2019 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Feb 6, 2020
Slide 1: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results February 6th, 2020 Q4 2019 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: 4Q19 financial results
4Q19 financial results $MM except loss ratio, Q4 FY Q4 key highlights Op. ROE, Op. EPS & Q/Q Y/Y Y/Y MICAT/MCT ratio 2019 2019 Premiums written $183 -16% +17% $701 +10% • Total premiums written increased Y/Y by 17% primarily Premiums earned $171 - +1% $679 - due to increased housing market activity
Slide 4: Our environment today
Our environment today Risk Assessment Denotes change from Q3’19 Key observations § Resilient Canadian economy with GDP forecast1 for 2020 at 1.6%. § Phase-one trade agreement between U.S. and China expected to reduce global trade tensions Economic and uncertainty. § Bank of Canada overnight rate mai
Slide 5: Regional risk assessment (Q4'19)
Regional risk assessment (Q4’19) Quarterly Snapshot TOR VAN MTL CGY CANADA Q4’19 Q/Q Teranet HPI 1 0.4% -0.1% 1.3% 0.1% 0.3% Q4‘19 UE Rate 1 5.6% 4.8% 6.0% 7.1% 5.7% High Denotes change from Q3’19 Size of circle reflects regional total risk-in-force Key Indicators § Overvaluation riskRisk § Affordab
Slide 6: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $677 $619 $19.3 Q4 $17.8 $6.1 $177 $151 Q4 $4.3 $5.1 $1.3 $4.2 Q3 $213 $192 $24 Q3 $5.5 $6.1 $1.3 $20 $1.1 $5 Q2 $0.8 $2.4 Q2 $166 $187 $5 $6 $4.8 $5.3 $4 $1.1 $8 $5 Q1 $3.2 $2.9
Slide 7: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) % Score <660 Avg score $355 $350 $349 $335 $331 $327 $324 $322 $315 $304 $301 $296 $284 9.8% 749 1.0% 727 2.3% 0.1% Q1'19 Q2'19 Q3'19 Q4'19 '10 '11 '12 '13 '14 '15 '16 '17 '18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'19 Q
Slide 8: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q4’19 Q3’19 Q4’18 Q4 highlights Transactional premiums written $177 $213 $151 Portfolio premiums written 5 6 5 • Transactional premiums written were higher by 17% Y/Y Total premiums written $183 $218 $156 • Premiums earned up by 1% Y/Y Premiums earn
Slide 9: Delinquency trends
Delinquency trends Outstanding delinquencies New delinquencies, net of cures, by region 405 Q/Q Total 1,760 1,761 1,798 385 ∆ 1,701 Total 373 1,684 59 Prairies1 258 242 258 326 48 64 16 244 240 Prairies1 215 221 226 52 73 281 69 51 Atlantic 192 199 -18 293 Atlantic 46 34 326 275 295 54 58 Quebec 347
Slide 10: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) Highlights Premiums earned $169 $169 $169 $171 $171 2019 • Full year 2019 premiums earned of $680 million Losses on claims 25 26 31 34 30 relatively consistent with prior year Expenses 33 34 32 33 35 • Trend of relatively low l
Slide 11: Investments contribute steady income
Investments contribute steady income Total investments and net derivative assets Operating Investment Income ($6.5B1) (excluding realized/unrealized gains, $ millions) Investments: $6.4B $212 $225 $55 Q4 $57 12% $57 Q3 $54 $56 Federals Duration: 3.6 years Q2 $51 Book yield: 3.3%2 $57 Provincials 33%
Slide 12: Capital management
Capital management Regulatory capital as at December 31st, 2019 (by category, $ millions unless otherwise noted)* 2020 capital management plan • Full year capital redeployment of $600 to MICAT $700 million, in addition to regular quarterly dividends: Dec. 31st, 2019 Sep. 30th, 2019 • $400 to $500 mi
Slide 13: Key strategic priorities
Key strategic priorities 1 2 3 4 5 Drive market Continue to Develop Right-size Influence key share growth exercise innovative our capital government by leveraging prudent risk product levels to stakeholders to advanced management solutions to drive focus on first analytics and and proactive enhance
Slide 14: 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 Q4 2019 Results Genworth MI Canada Inc. 14