Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2010 Earnings Presentation
20 slides from Sagen MI Canada's earnings presentation, Apr 30, 2010
Slide 1: First Quarter 2010 Results
First Quarter 2010 Results April 30, 2010
Slide 2: Agenda
Agenda • Business Strategy And Outlook • Financial Review • Operational Highlights • Question And Answer Session 1
Slide 3: Forward-Looking Statements
Forward-Looking Statements This press release includes certain forward-looking statements. These forward-looking statements include, but are not limited to, Genworth MI Canada’s plans, objectives, expectations and intentions, including the Company’s plans with respect to its capital structure, and o
Slide 4: Non-GAAP Measures
Non-GAAP Measures To supplement its financial statements, the Company uses select non-GAAP financial measures. Non- GAAP measures used by the Company to analyze performance include underwriting ratios such as loss ratio, expense ratio and combined ratio, as well as other performance measures such as
Slide 5: Business Update
Business Update Brian Hurley, Chairman and CEO
Slide 6: First Quarter 2010
First Quarter 2010 Solid Operating Results Net Operating Income $81 MM Operating EPS (Diluted) $0.69 13% ROE Strong Balance Sheet $5.1 Billion In Assets $2.7 Billion In Shareholders’ Equity 5
Slide 7: Key Trends
Key Trends Stabilizing Unemployment Strong Low Mortgage Interest Rates Housing Market Normalizing Home Prices Rising Consumer Confidence 6
Slide 8: Business Highlights
Business Highlights Strong Top Line Focused Risk Management Cash Redeployment Strong Financial Position 7
Slide 9: Capital Update
Capital Update Solid Capital Foundation Capacity For Growth Capital Available For Stress Scenarios Drive Capital Efficiency Add ~10% Leverage Return Of Capital Greater Capital Efficiency And Higher Return On Equity 8
Slide 10: Financial Highlights
Financial Highlights Philip Mayers, CFO
Slide 11: Financial Results Summary
Financial Results Summary (1) $ MM (unless otherwise stated) Q1 10 Q4 09 Net Premiums Written 94 110 Operating Net Income 81 77 Operating EPS ($ Diluted) $0.69 $0.66 Return On Operating Equity 13% 12.3% 1. Excludes $8 MM Favorable Tax Impact From A Reduction Of The Tax Rate Applicable To Future Inco
Slide 12: Underwriting Results
Underwriting Results Combined 62% 57% Ratio 54% 55% 55% 15% 15% 16% Expense 13% 17% Ratio 41% 46% 42% Loss 39% 38% Ratio Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 (1) Premiums $147 $153 $154 $155 $156 Earned Losses on $60 $71 $64 $60 $59 Claims Underwriting (1) (2) $45 $40 $46 $48 $50 Inc. (After Tax) Loss Rati
Slide 13: Investment Portfolio
Investment Portfolio Asset Backed & Other 6% • $4.85 Billion Portfolio Corporates 45% • Portfolio Duration Of 3.6 Years Provincials 14% • Book Yield of 4.4% (March 31, 2010) Federal Government 21% Cash 2% • $157 MM Cash Reinvestment Guarantee Fund 12% Mar. 31, 2010 High Quality, Diversified Portfoli
Slide 14: Operating Income Trend
Operating Income Trend Operating $85 $81 Tax Rate Income $77 $75 $8 $70 Reduction $29 $31 Investment $29 $32 $30 Income Underwriting $45 $46 $48 $50 Income $40 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Operating (1) (2) $77 $70 $75 $77 $81 Income Operating (2) $0.69 $0.63 $0.63 $0.66 $0.69 EPS ROE 14% 12% 12% 1
Slide 15: Operational Highlights
Operational Highlights Peter Vukanovich, President and COO
Slide 16: Operational Highlights
Operational Highlights 40% Year over Year Growth In Loan Approvals Customer Service Excellence Lender/Homebuyer Training Underwriting Process Improvements Giving Back To Our Communities Our Growth Strategies Are Working 15
Slide 17: Mortgage Portfolio Performance
Mortgage Portfolio Performance Insurance in Force 03/31/10 Delinquency Rate 31-Mar-10 31-Dec-09 30-Sept-09 Ontario 48% 0.23% 0.23% 0.25% BC 16% 0.25% 0.25% 0.23% Alberta 15% 0.55% 0.54% 0.50% Quebec 14% 0.30% 0.29% 0.29% Other 7% 0.17% 0.19% 0.19% Canada 0.28% 0.28% 0.28% Delinquencies Stabilizing 1
Slide 18: Regulatory Changes – April 19, 2010
Regulatory Changes – April 19, 2010 Mortgage Rule Change Intent Business Impact 5 Year Fixed Rate Protect Borrowers No Impact Qualifying Standards Against Future Rate Increases LTV Increased From 95% Encourage Homeowners Minimal To 90% On Refinances To Build Equity Impact Minimum 20% Down Reduce Pot
Slide 19: Outlook
Outlook Economy And Housing Market Improving Customer Centric Approach Proactive Risk Management Balance Sheet Supports Growth Enhance Shareholder Value 18
Slide 20: Question and Answer Session
Question and Answer Session April 30, 2010 For further information: Samantha Cheung, VP Investor Relations 905-287-5482 samantha.cheung@genworth.com www.genworth.ca