Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Q4 2020 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Feb 4, 2021
Slide 1: Fourth Quarter 2020 Results
GENWORTH MI CANADA INC. (now operating as Sagen MI CanadaTM ) Fourth Quarter 2020 Results February 4th, 2021 1 GENWORTH MI CANADA Q4 2020 Results SAGEN MI Canada
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”, “Sagen”, or “MIC”) often contain certain forward-looking statements. These forward-looking statements include, but are no
Slide 3: Q4 Financial Results
Q4 Financial Results $MM except loss ratio, Q4 Q3 Q4 Q4 key highlights Op. ROE, Op. EPS & Q/Q Y/Y MICAT ratio 2020 2020 2019 Premiums written $354 $297 $183 +19% +94% • Total premiums written increased Y/Y by 94% primarily due to an increase in transactional mortgage originations and Premiums earned
Slide 4: Our Environment Today
Our Environment Today Risk Assessment Denotes change from Q3’20 Key observations § Moderate recovery in GDP expected in 2021 and 2022 after sharp downturn in 2020 § Continued low-rate environment signaled by Bank of Canada Economic § Labour market recovery expected to slow in 2021; specific sectors
Slide 5: Regional risk assessment
Regional risk assessment Quarterly Snapshot TOR VAN MTL CGY CANADA Q4’20 Y/Y Teranet HPI 1 10.0% 6.4% 14.3% -2.0% 8.8% Q4‘20 UE Rate 1 10.6% 7.4% 8.2% 10.4% 8.8% High Ontario Denotes change from Q3’20 (ex GTA) Size of circle reflects regional total risk-in-force Key Indicators § Overvaluation riskRi
Slide 6: National Risk-In-Force (RIF)
National Risk-In-Force (RIF) % of Total Business With an Effective Loan-to-Value (ELTV) >80% by Book Year3 (As at December 31, 2020) % ELTV >80% (AB) 95% 100% % ELTV >80% (Other) % ELTV >80% (Total) 80% 60% 60% 42% 80% 40% 31% 40% 27% 25% 20% 20% 20% 10% 20% 15% 4% 1% 27% 20% 19% 21% 21% 20% 16% 10%
Slide 7: Top Line
Top Line New insurance written ($ billions) Premiums written ($ millions) Transactional Portfolio Transactional Portfolio $903 $25.8 $90 $6 Q4 $677 $335 $19.3 $9.5 $20 Q4 $19.2 $177 $5.1 $3.2 $24 $6 $6 $1.6 Q3 Q3 $8.3 $213 $291 $5 $6.1 $6 $60 Q2 $6.0 $13.4 Q2 $5.3 $4.8 $187 $167 $8 $1.3 $1.3 Q1 $2.9
Slide 8: Strong Portfolio Quality
Strong Portfolio Quality Credit Score1 Average Home Price2 Stacked Risk Factors3 (In ‘$000s) Credit Score Ratio LTV % Score <660 Avg score Avg < 660 Contractual TDSR > 40% 90-95% Compliance GDSR/TDSR $394 Max < 680 90-95% $371 > 35%/42% $369 $357 $356 $350 $349 $335 $331 $327 $324 754 1.3% $322 $315
Slide 9: Payment Deferrals Winding Down
Payment Deferrals Winding Down • 0.9% ($1.8B) of risk-in-force remains under deferral – this has declined significantly from 13.7% ($28.0B) in June. Of the remaining deferrals, ~65% have an effective LTV <80%. • We expect the vast majority of deferrals to return to performing mortgages Deferral Roll
Slide 10: Strong Financial Performance
Strong Financial Performance $MM except EPS & BVPS Q4’20 Q3’20 Q4’19 Q4 highlights Transactional premiums $335 $291 $177 written • Transactional premiums written were Portfolio premiums written 20 6 5 higher by 89% Y/Y on increased housing activity and market share Total premiums written $354 $297 $
Slide 11: Delinquency Trends
Delinquency Trends Outstanding delinquencies1,2 New delinquencies, net of cures, by region1,2 Ontario BC Alberta Ontario Pacific Alberta Quebec Atlantic Prairies Quebec Atlantic Prairies 1,798 1,974 491 1,754 1,769 1,581 69 297 385 39 258 273 271 206 64 73 226 166 252 284 227 315 51 293 283 151 55 2
Slide 12: Investments
Investments Total investments and net derivatives Operating Investment Income ($7.1B1) (excluding realized/unrealized gains, $ millions) Duration: 3.6 years Book yield: 3.0%2 $225 $196 Q4 $55 Market MTM5 MTM5 $46 Portfolio ($MM) % Mix Value Q4 Q3 Q3 $57 $48 Cash & other4 609 35 9% - Q2 $56 $48 Q1 $5
Slide 13: Capital management
Capital management Regulatory capital as at December 31st, 2020 (by category, $ millions unless otherwise noted)* Highlights December 31st, September 30th, 2020 2020 MICAT & Holdco Cash • MICAT ratio of 187% positions MIC to capitalize on organic growth opportunities Capital available 4,317 4,217 •
Slide 14: Investor Relations
Aaron Williams, CPA, CA Vice President, Finance/Investor Relations 905.287.5504 aaron.williams@sagen.ca Investor Relations investor.sagen.ca investor@sagen.ca 14 GENWORTH MI CANADA Q4 2020 Results SAGEN MI Canada
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