Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q2 2019 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Jul 30, 2019
Slide 1: Second Quarter 2019 Results
Second Quarter 2019 Results July 30th, 2019 Q2 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: 2Q19 financial results
2Q19 financial results $MM except loss ratio, Q2 Q1 Q2 Op. ROE, Op. EPS & 2019 2019 2018 Q/Q Y/Y Q2 key highlights MICAT/MCT ratio Premiums written $195 $105 $172 +85% +14% • Total premiums written increased Y/Y by 14% primarily due to increased transactional insurance premiums Premiums earned $169
Slide 4: Our environment today
Our environment today Risk Assessment Denotes change from Q1’19 Key observations ▪ GDP forecast1 for 2019 marginally increased to 1.3% (from 1.2%), growth expected to pick up to 1.9% in 2020 Economic ▪ BoC overnight rate maintained at 1.75% in July1 ▪ Unemployment near all-time lows; stable environm
Slide 5: Regional risk assessment
Regional risk assessment Quarterly Snapshot TOR VAN MTL CGY CANADA Q2’19 Q/Q Teranet HPI 1 0.9% -1.2% 0.7% -0.7% 0.2% Q2‘19 UE Rate 1 5.9% 4.0% 5.5% 7.2% 5.5% High Denotes change from Q1’19 Size of circle reflects regional total risk-in-force Key Indicators riskRisk ▪ Overvaluation ▪ Affordability O
Slide 6: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $17.8 $619 Q4 $151 Q4 $4.3 $4.2 Q3 $5.5 $3.4 Q3 $192 $8.2 $1.1 $287 $20 $0.8 $5 $2.4 Q2 $166 $187 $13 Q2 $4.8 $5.3 $1.1 $4 $8.0 $275 $5 $8 $2.3 Q1 $3.2 $1.2 Q1 $109 $100 $11 $2.9
Slide 7: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) Q2’19 reflects % Score <660 Avg score typical increase in QC business mix $350 $342 $341 $336 $331 $327 $324 $323 $322 $315 $304 $301 $296 $284 9.8% 749 1.0% 727 2.4% 0.3% '10 '11 '12 '13 '14 '15 '16 '17 Q1'
Slide 8: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q2’19 Q1’19 Q2’18 Q2 highlights Transactional premiums written $187 $100 $166 • Transactional premiums written higher by Portfolio premiums written 8 5 5 12% Y/Y, driven by increased housing market activity Total premiums written $195 $105 $172 • Pr
Slide 9: Delinquency trends
Delinquency trends Outstanding delinquencies New delinquencies, net of cures, by region 405 Total 1,742 1,760 1,695 1,684 1,701 Total 360 Q/Q 59 Prairies1 241 247 244 258 240 328 326 ∆ Prairies1 45 Atlantic 229 206 192 215 199 42 52 73 281 Atlantic 67 368 326 275 47 34 -25 Quebec 349 347 54 46 Quebe
Slide 10: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) Highlights Premiums earned $171 $169 $169 $169 $169 • Full year 2019 premiums earned are expected to Losses on claims 25 23 be flat to modestly lower Y/Y due to relatively 30 25 26 smaller recent books Expenses 33 32 33 34 32 •
Slide 11: Investments contribute steady income
Investments contribute steady income Total investments and net derivative assets ($6.6B1) Interest rate hedge program Investments: $6.5B Interest rate swaps Forward curve5 Notional (C$B) $3.5 13% Floating rate5 1.75% - 2.00% Federals Duration: 3.7 years Fixed rate5 1.17% Book yield: 3.2%2 Spread ~0.
Slide 12: Capital management
Capital management Regulatory capital as at Jun. 30th, 2019 (by category, $ millions unless otherwise noted)* Highlights MICAT ▪ Strong capital position with MICAT ratio of Jun. 30th, 2019 Mar. 31st, 2019 169% and ample financial flexibility Capital available 4,419 4,468 including holding company ca
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
Jonathan A. Pinto, MBA, LL.M Vice President, Investor Relations 905.287.5482 jonathan.pinto@genworth.com Investor Relations investor.genworthmicanada.ca investor@genworth.com Q2 2019 Results Genworth MI Canada Inc. 14