Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q3 2012 Earnings Presentation
13 slides from Sagen MI Canada's earnings presentation, Oct 31, 2012
Slide 1: Third Quarter 2012
Genworth MI Canada Inc Inc. Third Q Quarter 2012 October 31, 2012
Slide 2: Speakers
Speakers Brian Hurley Philip Mayers Genworth MI Canada Inc. 2 Q3 2012 October 31, 2012
Slide 3: Forward-looking and non-IFRSs statements
Forward‐looking and non‐IFRSs statements This presentation includes certain forward‐looking statements. These forward‐looking statements include, but are not limited to, statements with respect to the Company’s future operating and financial results, expectations regarding premiums written, capital
Slide 4: Business delivered solid results
Business delivered solid results Q3 2012 Q2 2012 Q3 2011 Net operating p g income $ MM $ $81 $79 MM $ $80 MM Return on equity 12% 12% 13% Operating earnings per share $0.82 $0.79 $0.79 (diluted) Book Value Per Share (Diluted, including AOCI) 28.72 27.88 26.82 Q3 2011 Q2 2012 Q3 2012 Genworth MI Cana
Slide 5: Highlights – Q3 2012
Highlights – Q3 2012 Demonstrated top p line ggrowth High ratio volumes reflect strong sales execution Portfolio insurance volumes normalized in Q3 2012 Loss ratio improvement to 30% Broad regional delinquency improvement Improving Alberta housing market 10% common dividend increase
Slide 6: Housing market dynamics
Housing market dynamics Government changes g to mortgage g g rules implemented p Housing market showing signs of moderating Supply and demand still balanced High loan‐to‐value mortgage volume lower Genworth MI Canada Inc. 6 Q3 2012 October 31, 2012
Slide 7: Improving delinquency performance
Improving delinquency performance Mortgage insurance portfolio Insurance delinquency q y rate in‐force Sept 30 June 30 Sept 30 Sept 30 2012 2012 2011 2012 Ontario 0 09% 0.09% 0 10% 0.10% 0 13% 0.13% 46% BC 0.18% 0.22% 0.27% 16% Alberta 0 24% 0.24% 0 29% 0.29% 0 46% 0.46% 16% Quebec 0.20% 0.22% 0.22%
Slide 8: Continued profitability
Continued profitability $ MM Q3 2012 Q2 2012 Q3 2011 (except EPS and BVPS) Net premiums written $ 178 $ 176 $ 160 Premiums earned 147 148 149 Losses on claims (44) (48) (54) Underwriting income 77 76 71 Investment income 39 40 44 (excluding gains / losses) Net operating income $ 81 $ 79 $ 80 Operati
Slide 9: Top line performance
Top line performance Gross Premiums Written ($MM) 4 11 10 Solid sequential improvement in high Portfolio 12 47 Low LTV loan‐to‐value volumes 11 Refinances Reflective of strong spring market High LTV Purchases 147 160 Anticipate Q4 will be impacted by High LTV 121 government changes Q3 ‘11 Q Q2
Slide 10: Consistent underwriting results
Consistent underwriting results Underwriting Profit ($MM) Premiums Earned $149 $148 $147 Losses on 44 Claims 54 48 Premiums earned stable Expenses 24 25 26 Loss ratio of 30% reflects seasonal decline in delinquencies U/W Profit 76 77 77 Consistent C i t t combined bi d ratios ti and d underwri
Slide 11: Investment portfolio adds income stability
Investment portfolio adds income stability Preferred Shares and Common Guarantee Fund, Equity, 6% 15% Primarily fixed income C h 6% Cash, 96% of bonds ‘A’ or better Total $5.2B 3.5 year duration General Fund $4 4B $4.4B Federal 15% Federal, $304 MM common and preferred Corporates, 42% equiti
Slide 12: Strong capital position with flexibility
Strong capital position with flexibility Minimum Capital Test Ratio 164% 161% 160% Internal MCT Target 145% Q3 2011 Q2 2012 Q3 2012 Leverage1 14% 13% 13% ROE 13% 12% 12% 1. Debt to total capital Genworth MI Canada Inc. 12 Q3 2012 October 31, 2012
Slide 13: Question and Answer
Question and Answer SAMANTHA CHEUNG For further info: VP INVESTOR RELATIONS 905 287 5482 samantha cheung@genworth com samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 13 Q3 2012 October 31, 2012