Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q3 2014 Earnings Presentation
12 slides from Sagen MI Canada's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014
Genworth MI Canada Inc. Third Quarter 2014 November 6, 2014
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
Slide 3: Strong performance driven by top line
Strong performance driven by top line Key Q3 2014 messages: Q3 2014 Q/Q Y/Y Very strong top line growth of +35% Premiums written $217 million +57 million +$56 million Loss ratio normalized at 21% after Net Operating $93 million -$6 million +$2 million exceptionally strong performance in the Inco
Slide 4: Market environment remains stable
Market environment remains stable Market dynamics Impact to business Modest home price appreciation led by Vancouver, Calgary and Toronto GDP growth in the 2-2.5% range expected Growth in mortgage originations expected over the next 12 months in 2015 Unemployment rate down to 6.8% - Credit
Slide 5: High quality insurance portfolio
High quality insurance portfolio 737 738 733 734 730 Average 726 727 727 Key messages: Credit Score 09 10 11 12 13 Q114 Q214 Q314 Credit score up 12 pts since 2009 ($000’s) Average home price well below CREA national average price Average 284 296 301 304 315 304 319 Home Price 266 Gross debt r
Slide 6: Stable delinquency trend
Stable delinquency trend Outstanding Delinquencies Key messages: Y/Y delinquency improvement reflects lower 1,830 1,860 Other 1,778 68 78 1,703 1,708 delinquencies in Ontario, BC and Alberta, 82 206 offset by Quebec and the Atlantic region 184 75 76 Atlantic 177 198 199 482 527 New delinquencies
Slide 7: Solid financial performance
Solid financial performance $MM except EPS and BVPS Q3’14 Q2’14 Q3’13 Key messages: Premiums written $217 $160 $161 Strong premiums written growth Premiums earned 140 141 143 outpaced the general market growth Losses on claims 30 17 32 Higher losses on claims reflect new Expenses 24 27 27 delinq
Slide 8: Premiums written trending higher
Premiums written trending higher Premiums written Key messages: ($millions) On pace for strong premiums written 21% growth in 2014 YTD $382 $462 Unearned premiums increased Q/Q due to higher premiums written 217 Q3 161 Higher premiums written year-over-year is Q2 positive for earned premiums g
Slide 9: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($millions) Key messages: Premiums earned $143 $142 $141 $141 $140 YTD loss ratio of 18% consistent with Losses on claims 32 31 28 17 30 2014 full year loss ratio expected range 27 of 15-25% 27 33 27 24 Expenses Stable expense ratio Und
Slide 10: Investments contribute steady income
Investments contribute steady income Key messages: Focus on high investment quality Common Equity Cash 3% 6% Diversified portfolio with over 50% government securities and cash Corporates 43% Federal 32% Total $5.5 billion Portfolio Invested assets and $5.5 billion cash (market value) Provincial
Slide 11: Strong capital position
Strong capital position Minimum Capital Test Ratio (MCT) Key messages: Continuing to balance capital strength, 218% 223% 229% 230% 224% flexibility and efficiency 38% 44% 45% 39% 33% $184 million holding company cash and marketable securities 185% 185% 185% 185% 185% Increased ordinary dividen
Slide 12: 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. 12 Q3 2014