Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q2 2013 Earnings Presentation

13 slides from Sagen MI Canada's earnings presentation, Jul 31, 2013

  1. Slide 1: Second Quarter 2013

    Genworth MI Canada Inc. Second Quarter 2013 July 31, 2013

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

    Forward-­‐looking and non-­‐IFRS statements This presenta?on includes certain forward-­‐looking statements. These forward-­‐looking statements include, but are not limited to, statements with respect to the Company’s future opera?ng and financial results, expecta?ons regarding premiums wriIen, capita

  3. Slide 3: Net operating income higher by 11%

    Net opera?ng income higher by 11% Q2 2013 Q2 2012 Net opera?ng income $88 million $79 million Opera?ng Return on equity 12% 12% Opera?ng earnings per share (diluted) $0.89 $0.79 Book Value Per Share (diluted, including AOCI) 11% CAGR $31.32 $30.94 $30.62 $28.72 $27.88 Q2 2012 Q3 2012 Q4 2012 Q1 2013

  4. Slide 4: Solid results for Q2 2013

    Solid results for Q2 2013 Priority Result  Premiums wriIen $137 million of new premiums wriIen  Prudent risk management Loss ra?o of 25%  Investment porbolio return $5.3 billion investment porbolio Book yield of 3.6% as at June 30, 2013  Capital strength Minimum capital test of 216%  Dividends

  5. Slide 5: Broad based improvement in delinquencies

    Broad based improvement in delinquencies Number of delinquencies & Insurance Delinquency rate in-­‐force June 30 March 31 June 30 June 30 2013 2013 2012 2013 Ontario 453 533 649 46% BC 318 337 395 15% Alberta 301 337 551 16% Quebec 451 507 587 14% Other 255 249 226 9% Total 1,778 1,963 2,408 100% De

  6. Slide 6: Canadian market update

    Canadian market update Macroeconomic environment • Solid outlook for Canadian economy 2013 New Insurance WriZen • Unemployment rate stable • Average credit score 732 • Monetary policy suppor?ng growth • Average GDS* of 23% Housing market • Home prices up a modest 4%  Balanced housing market • 89% l

  7. Slide 7: Demonstrated track record of performance

    Demonstrated track record of performance $ millions (except EPS) Q2 2013 Q1 2013 Q2 2012 Net premiums wriZen $137 $84 $176 Premiums earned 143 144 148 Losses on claims (35) (44) (48) Underwriang income 82 74 76 Net investment income 44 45 40 (excluding gains/losses) Net operaang income $88 $85 $79 O

  8. Slide 8: Core business steady, in line with market

    Core business steady, in line with market Premiums wriZen 11 ($millions) 47 10 26  2012 product changes have resulted in 11 17 slower real estate ac?vity 3 3 160 11 3  Premiums from purchases down 10% year-­‐ Pordolio 121 99 108 over-­‐year consistent with slower resale Refinance 71 volumes Purchas

  9. Slide 9: Solid underwriting performance

    Solid underwri?ng performance Underwriang profit ($millions) Premiums earned $148 $147 $147 $144 $143  Strong porbolio quality & stable Losses on 48 44 46 44 35 economic condi?ons posi?vely claims 26 influencing loss performance 25 26 28 26 Expenses Underwriang 76 77 73 74 82  New reported delinquen

  10. Slide 10: Investment portfolio remains high quality

    Investment porbolio remains high quality  Balanced high quality porbolio Cash • 50% federal & provincial bonds 5% Common Equity • 41% corporate bonds 5% • 95% of bonds ‘A’ or higher Federal  $193 million posi?ve mark-­‐to-­‐market Total 37% $5.3 billion $ Billion Pordolio Assets (MV) $5.3 Corporat

  11. Slide 11: Strong capital position with flexibility

    Strong capital posi?on with flexibility Minimum Capital Test Raao (MCT raao) 216% 216% 31% 31% 170% 162% 156% 17% 25% 11% 185% 185% Internal MCT raao target 145% 145% 145% 2010 2011 2012 Q1 2013 Q2 2013 Repurchased $50 million common shares during quarter Genworth MI Canada Inc. 11 Q22013 July 31, 20

  12. Slide 12: Our core strengths

    Our core strengths! Proven business model Disciplined execuaon Strong risk focus Capital flexibility Solid financial foundaaon Genworth MI Canada Inc. 12 Q22013 July 31, 2013

  13. Slide 13: Question and Answer

    Ques?on and Answer SAMANTHA CHEUNG For further info: VP INVESTOR RELATIONS 905 287 5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 13 Q22013 July 31, 2013

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