Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q2 2017 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Aug 1, 2017
Slide 1: Second Quarter 2017 Results
Second Quarter 2017 Results August 1st, 2017 Q2 2017 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: 2Q17 financial results
2Q17 financial results $MM except ROE, Q2 Q1 Q2 EPS & MCT 2017 2017 2016 Q/Q Y/Y Q2 key highlights Premiums written $170 $127 $249 +33% -32% • Transactional premiums written of $161MM; lower by 5% Y/Y, 14% lower new insurance written, partly offset by 10% higher Loss ratio 3% 15% 21% -12 pts -17 pts
Slide 4: Top line
Top line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $41.9 $619 $21.2 $4.9 Q4 $149 Q4 $5.1 $6.5 Q3 $201 $140 Q3 $6.9 $22 $250 $8.0 $22 $25.9 $11.6 Q2 $170 Q2 $5.8 $1.1 $161 $46 $5.0 $78 $8 Q1 $3.4 $10.5 Q1 $99 $89 $38 $3.0 $4.5 $18
Slide 5: Our environment today
Our environment today Key takeaways Risk Assessment • Canada 2017 GDP projection revised to 2.8% (up from 2.6%) • Oil producing regions showing modest improvement Economic • Overnight lending rate increased 25 bps to 0.75% Government changes have stabilized key housing markets Housing in Ontario.
Slide 6: Housing risk
Regional risk assessment High Denotes change from Q1’17 GTA Ontario Key Indicators (ex GTA) Overvaluation Affordability Housing risk Pacific Price-to- (ex GVA) income Prairies Supply/ Alberta demand GVA Atlantic Quebec Low Economic risk High Key Metrics: GDP Forecast; UE Rate; Economic diver
Slide 7: Strong portfolio quality
Strong portfolio quality Credit score1 Average home price2 Stacked risk factors3 (In ‘$000s) % Score <660 (R) Avg score (L) Q2 reflects typical increase in QC business mix $330 $328 $327 $326 $322 $317 $315 $315 747 11% $304 $301 727 $296 $284 0.9% 3% 0.3% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q
Slide 8: Delinquency trends
Delinquency trends Delinquencies outstanding New delinquencies, net of cures, by region 493 Total 491 Q/Q ∆ Total 2,070 2,082 33 436 1,961 2,027 50 -336 1,809 Total 352 66 33 Prairies1 201 203 212 101 189 Prairies1 77 Atlantic 211 235 259 205 93 Q/Q 212 204 Atlantic 52 109 ∆ 59 128 Quebec 578 504 52
Slide 9: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) Highlights Premiums earned $158 $162 $164 $167 $168 • Continued trend of Q/Q growth in premiums earned driven by higher level of premiums 6 29 26 written in last several years; modest Y/Y 31 Losses on claims 32 41 increase in p
Slide 10: Strong financial performance
Strong financial performance $MM except EPS & BVPS Q2’17 Q1’17 Q2’16 Q2 highlights Transactional premiums written $161 $89 $170 • Transactional premiums written lower by 5% Y/Y, Portfolio premiums written 8 38 78 due to lower NIW, partly offset by higher average premium rate Total premiums written $
Slide 11: Investments contribute steady income
Investments contribute steady income Net Investment Income Total Invested Assets ($6.3B portfolio1) (excluding realized/unrealized gains, $ millions)6 $176 16% Q4 $46 Federals Duration: 3.8 years Book yield: 3.2%2 Provincials 33% Investment grade Invested assets corporates3 (C$ millions, unless note
Slide 12: Capital management
Capital management Regulatory capital as at June 30th, 2017 (by category, $ billions unless otherwise noted) Highlights ~4.0 ~4.1 Capital in excess of Strong capital position with MCT ratio Capital in excess of 220% ~0.3 ~0.5 150% of 167% Operational Risk 0.4 0.4 Market Risk1 0.2 0.2 • Reflects stro
Slide 13: Key takeaways
Key takeaways Keen focus on risk management Proven Balanced approach to writing new business business model has positioned MIC for Proactive loss mitigation future programs performance Investing in our customer experience strategy Q2 2017 Results Genworth MI Canada Inc. 13
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 2017 Results Genworth MI Canada Inc. 14