Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Investor Presentation (June 2013)

14 slides from Sagen MI Canada's investor presentation, June 2013

  1. Slide 1: Genworth MI Canada Inc. June 2013

    Genworth MI Canada Inc. 1 June, 2013

  2. Slide 2: Forward-looking and non-IFRS statements

    Forward-­‐looking and non-­‐IFRS statements This presenta8on includes certain forward-­‐looking statements. These forward-­‐looking statements include, but are not limited to, statements with respect to the Company’s future opera8ng and financial results, expecta8ons regarding premiums wriDen, capita

  3. Slide 3: Solid Q1 2013 results across key metrics

    Solid Q1 2013 results across key metrics Q1 2013 Q1 2012 Net opera8ng income $ 85 MM $76 MM Opera8ng Return on equity 12% 12% Opera8ng earnings per share (diluted) $0.86 $0.77 Book Value Per Share (diluted, including AOCI) 15% YoY growth $31.32 $30.62 $28.72 $27.31 $27.88 Q1 2012 Q2 2012 Q3 2012 Q4

  4. Slide 4: Consistent results

    Consistent results PrioriDes First Quarter 2013 P Premiums wriDen $84 million of new premiums wriDen P Prudent risk management Loss ra8o of 31% P Investment pordolio return $5.3 billion investment pordolio Book yield of 3.7% as at March 31, 2013 P Capital strength Minimum capital test of 216% P

  5. Slide 5: Positive trends in delinquency rate

    Posi8ve trends in delinquency rate Mortgage insurance portfolio Insurance delinquency rate in-­‐force March 31 Dec 31 Sept 30 March 31 2013 2012 2012 2013 Ontario 0.08% 0.09% 0.09% 46% BC 0.20% 0.18% 0.18% 15% Alberta 0.18% 0.22% 0.24% 16% Quebec 0.19% 0.19% 0.20% 14% Other 0.15% 0.14% 0.15% 9% Cana

  6. Slide 6: Recent federal budget

    Recent federal budget March budget overview § No changes to high loan-­‐to-­‐value products § Proposal to limit use of pordolio insurance to gov’t sponsored securi8za8on programs § Proposal to prohibit use of insured mortgages in private securi8za8on programs Impact on MIC § MIC insured mortgage

  7. Slide 7: Canadian market outlook

    Canadian market outlook Macroeconomic environment § Economy to grow modestly in 2013 … Second half stronger than first § Moderate income growth § Stable employment outlook Housing market § Low rates and steady employment con8nues to support housing § Balanced market expected to keep prices rela8

  8. Slide 8: Book value continues to grow

    Book value con8nues to grow $ millions (except EPS) Q1 2013 Q4 2012 Q1 2012 Net premiums wriZen $84 $ 117 $79 Premiums earned 144 147 147 Losses on claims (44) (46) (56) UnderwriDng income 74 73 65 Adjusted net investment income 45 46 43 (excluding gains/losses) Adjusted net operaDng income $85 $89

  9. Slide 9: Core business outpaced market

    Core business outpaced market Premiums wriZen 11 ($millions) 10 § Lower housing ac8vity as housing market 47 transi8ons to more sustainable level 11 17 3 § Resale volumes down 15% year-­‐over-­‐year 3 3 11 160 9 3 Porcolio 121 § Improved market penetra8on par8ally 99 offset smaller higher loan-­‐t

  10. Slide 10: Solid underwriting performance

    Solid underwri8ng performance UnderwriDng profit ($millions) Premiums earned § New reported delinquencies $147 $148 $147 $147 $144 Losses on 48 44 46 44 declined by 6% sequen8ally despite claims 56 typical seasonal pressures 25 26 28 26 Expenses 26 UnderwriDng 76 77 73 74 § Q1 loss ra8o flat sequen8

  11. Slide 11: Investment portfolio remains high quality

    Investment pordolio remains high quality § Balanced high quality pordolio Cash • 49% federal & provincial bonds 5% Common Equity • 40% corporate bonds 6% • 96% of bonds ‘A’ or higher Federal § $324 million posi8ve mark-­‐to-­‐market 35% Total $5.3 billion $ Billion Porcolio Corporates Provincial A

  12. Slide 12: Strong capital position with flexibility

    Strong capital posi8on with flexibility Minimum Capital Test RaDo 216% MCT raDo 210% 25% 31% Buffer 170% 162% 156% 17% 25% 11% Internal MCT raDo target 185% 185% 145% 145% 145% 2010 2011 2012 1-­‐J an-­‐13 31-­‐Mar-­‐13 Normal course issuer bid announced Genworth MI Canada Inc. 12 June, 2013

  13. Slide 13: Strategic priorities remain the same!

    Strategic priori8es remain the same! Disciplined execuDon Proven business model Solid financial foundaDon Profitability remains a key focus Genworth MI Canada Inc. 13 June, 2013

  14. Slide 14: Question and Answer

    Ques8on 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 June, 2013

Genworth MI Canada — Investor Presentation (June 2013) on 6ix