Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2011 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, May 4, 2011
Slide 1: First Quarter 2011
Genworth MI Canada Inc. First Quarter 2011 May 4, 2011
Slide 2: Agenda
Agenda Business Strategy Financial Review Operational Review and Outlook Question and Answer Genworth MI Canada Inc. 2 Q1 2011 May 4, 2011
Slide 3: Forward-Looking and Non-IFRS Statements
Forward-Looking and Non-IFRS 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 e
Slide 4: First quarter 2011 – key metrics
First quarter 2011 – key metrics Net premiums written $101 MM Net operating income $78 MM Loss ratio 38% Return on equity 13% Operating earnings per share (diluted) $0.74 Genworth MI Canada Inc. 4 Q1 2011 May 4, 2011
Slide 5: Market environment
Market environment • Balanced housing market • Modest overall home price appreciation • Typical delinquency seasonality • Improved job growth Genworth MI Canada Inc. 5 Q1 2011 May 4, 2011
Slide 6: Strategy delivered results
Strategy delivered results Strategic Priorities Q1 2011 Results Premium growth Net premiums growth of 7% (YoY) Prudent risk management Loss ratio of 38% (flat YoY) Investment portfolio returns enhancement Active portfolio management Book yield up to 4.3% Capital strength and flexibility 155% MCT – a
Slide 7: Strong capital position with flexibility
Strong capital position with flexibility Capital Base (MM) 422 422 • Strong capital flexibility − In-force profitability 2,589 2,621 − Large 2006 to 2008 books consuming less capital Q4 2010 Q1 2011 • Capital management priorities Shareholders' Equity Debt Outstanding − Investing for growth 2010 Q1
Slide 8: First quarter performance
First quarter performance $ MM (except per share Q1 2011 Q4 2010 Q1 2010 amounts) Net Premiums Written $ 101 $ 134 $ 94 Premiums Earned 155 156 156 Losses on Claims (59) (50) (59) Underwriting Income 71 77 71 Investment Income (excl. gains / 43 44 45 losses) Net Operating Income $ 78 $ 84 $ 81 Opera
Slide 9: Premiums written
Premiums written Net Premiums Written ($MM) $552 • Slow housing market … seasonal 134 effects • Solid housing affordability driven 166 by attractive mortgage rates • Better market penetration 157 94 101 7% higher net premiums written (YoY) 2010 2011 Q1 Q2 Q3 Q4 Genworth MI Canada Inc. 9 Q1 2011 May
Slide 10: Stable overall delinquency rate
Stable overall delinquency rate Mortgage insurance portfolio Insurance delinquency rate in-force 31 March 31 March 31 Dec 2010 30 Sept 2010 2011 2011 Ontario 0.18% 0.18% 0.17% 46% BC 0.31% 0.30% 0.27% 16% Alberta 0.59% 0.62% 0.58% 16% Quebec 0.26% 0.23% 0.21% 15% Other 0.19% 0.17% 0.19% 7% Canada 0.
Slide 11: Underwriting performance
Underwriting performance Premiums Earned and Losses on Claims ($MM) Premiums Losses 156 156 155 59 59 50 Q1’ 10 Q1'10 Q4’10 Q4'10 Q1’11 Q1 '11 Loss Ratio 38% 32% 38% Expense Ratio 16% 18% 17% Combined ratio 55% 50% 55% Maintaining strong risk discipline and loss mitigation focus Genworth MI Canada I
Slide 12: Investment portfolio adds income stability
Investment portfolio adds income stability • Primarily fixed income Preferred, 2% Common, 3% Guar. Fund, 13% • 96% of fixed income rated ‘A’ or better Corporates, 46% Cash, 6% • Duration of 3.7 years • Book yield1 of 4.3% as at Total - $5.1B General Fund March 31, 2011 Federal, 17% - $4.5B Every 10
Slide 13: Our focus for 2011
Our focus for 2011 Seek opportunities for enhanced value-added customer service Expand loss mitigation opportunities Prudently enhance investment portfolio yield Operate with efficient capital structure Focus on growth and returns Genworth MI Canada Inc. 13 Q1 2011 May 4, 2011
Slide 14: Question and Answer
Question and Answer SAMANTHA CHEUNG For further info: VP INVESTOR RELATIONS 905 287 5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada Inc. 14 Q1 2011 May 4, 2011