Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q2 2014 Earnings Presentation

11 slides from Sagen MI Canada's earnings presentation, Jul 30, 2014

  1. Slide 1: Second Quarter 2014

    Genworth MI Canada Inc. Second Quarter 2014 July 30, 2014

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

    Forward-looking and non-IFRS statements This presentation relating to Genworth MI Canada Inc. (the “Company”, “Genworth Canada” or “MIC”) includes certain forward- looking statements. These forward-looking statements include, but are not limited to, statements with respect to the Company’s future op

  3. Slide 3: Strong performance across all key metrics

    Strong performance across all key metrics Q2 2014 Q/Q Y/Y Key Q2 2014 messages: Premiums written $160 +91% +17%  Strong top line growth million  High quality insurance portfolio Net Operating $99 +9% +12%  Low losses continue Income million  Increased net operating income Operating ROE 13% +1 pt

  4. Slide 4: Market overview

    Market overview Influencer Impact to business  Modest mortgage origination growth  Stable macro economic environment  Larger premium opportunity in the core  Balanced housing market high loan-to-value market segment  Industry premium rate increase on May 1  Opportunity for market share gains 

  5. Slide 5: High quality insurance portfolio

    High quality insurance portfolio 726 727 727 730 733 734 737 Average Key messages: Credit Score 09 10 11 12 13 Q114 Q214  Credit score up 11 pts since 2009 ($000’s)  Modest home price appreciation since 2012 Average  Gross debt ratios stable, strong preference 266 284 296 301 304 315 304 Home Pri

  6. Slide 6: Delinquency trends

    Delinquency trends Number of Reported Delinquencies Key messages:  4% decrease in delinquencies YoY 1,830 1,860 1,778 1,778  Downward trend driven by strong portfolio 1,703 252 284 quality, employment growth and stable Other 255 259 1,830 269 housing markets 451 482 527  Declining trend led by Al

  7. Slide 7: Strong profitability in Q2 2014

    Strong profitability in Q2 2014 $MM except EPS and BVPS Q2’14 Q1’14 Q2’13 Key messages: Premiums written $160 $84 $137  Premiums written result of higher Premiums earned 141 141 143 market penetration and increased housing activity Losses on claims 17 28 35  May 1 price increase will have Expenses

  8. Slide 8: Low losses drove increased profitability

    Low losses drove increased profitability Underwriting profitability ($millions) Key messages: Premiums earned $143 $143 $142 $141 $141  Low mortgage delinquencies for industry Losses on claims 35 32 31 28 17  Company’s 2014 full year loss ratio anticipated 27 range of 15-25% 27 27 Expenses 26 33 

  9. Slide 9: Investments contribute steady income

    Investments contribute steady income Key messages:  Focus on high investment quality Common Equity Cash  Diversified portfolio with over 50% 3% 5% government securities and cash Corporates 44% Federal 31% Total $5.3 billion Portfolio Invested assets and $5.3 billion cash (market value) Provincial

  10. Slide 10: Strong capital position

    Strong capital position Minimum Capital Test Ratio (MCT) Key messages:  Continuing to balance capital strength, 216% 218% 223% 229% 230% flexibility and efficiency 220% 31% 33% 38% 44% 45% holding  Operating holding MCT target established at target 220%, pending finalization of new capital test fo

  11. Slide 11: Question and Answer

    Question and Answer SAMANTHA CHEUNG Contact: VP INVESTOR RELATIONS 905 287 5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 11 Q2 2014

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