Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Scotiabank Financials Summit 2014

15 slides from Sagen MI Canada's conference presentation, Sep 4, 2014

  1. Slide 1: Scotiabank Financials Summit

    Brian Hurley Scotiabank Chairman and CEO Financials Summit September 4, 2014

  2. 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

  3. Slide 3: Agenda

    Agenda  Business overview  Market dynamics and portfolio  Financial performance  Strategic priorities  Key takeaways Genworth MI Canada (TSX: MIC) l 3

  4. Slide 4: Mortgage insurance enables homeownership

    Mortgage insurance enables homeownership premium premium Mortgage Lender Homebuyer Mortgage Insurer Originates Mortgages mortgage claim Product characteristics  Mandatory for less than 20% down payment  Upfront borrower paid premium  Lender receives protection against loss from mortgage default 

  5. Slide 5: Genworth MI Canada – Who we are

    Genworth MI Canada (TSX: MIC) – Who we are Business Highlights Differentiating Factors  20 years in market  Value added service  Leading private sector MI  Risk management  $5.7 billion assets  Regulatory expertise  $3.6 billion shareholders’ equity  Capital management  Publicly traded on T

  6. Slide 6: Influences of our business – the market

    Influences of our business – the market Housing Resales and Completions (units in thousands) Key messages 642 635 636 634 643 663  “New to Canada” a key component of growth 176 176 185 200 187 180  Balanced housing markets  Stable unemployment outlook  Low interest rates helping 466 448 460 454

  7. Slide 7: Influences of our business – housing risk

    Influences of our business – housing risk Housing risk scorecard Key Risks Risk Level Assessment / Actions Rebound in consumer confidence British Columbia Overvaluation Resale volumes returning to long term trend Stronger economic conditions Alberta Supply Labour force growth boosting housing demand

  8. Slide 8: Who do we insure?

    Who do we insure? Mortgage Originators Borrower demographics 10%  First-time home buyers Regional/Credit Unions 75%  Prime borrowers with Big 6 Banks 15% strong credit profiles Mortgage Banks  Primarily fixed rate loans  25 year amortization Source: Statistics Canada First-time home buyers will

  9. Slide 9: High quality insurance portfolio

    High quality insurance portfolio Average 726 727 727 730 733 734 737 Credit Score Key Messages  Credit score up 11 pts '09 '10 '11 '12 '13 1Q'14 2Q'14  Modest home price ($000’s) appreciation Average Home Price 301 304 315 304  Gross debt ratios stable, 266 284 296 strong preference for 5-yr '09

  10. Slide 10: Solid financial performance

    Solid financial performance 1H 2014 1H 2013 Net premiums written $244 million $221 million Underwriting profits $183 million $156 million Investment income $97 million $108 million Net operating income $190 million $173 million Operating EPS (diluted) $2.00 $1.75 Operating return on equity 13% 12% B

  11. Slide 11: Strong track record – 5 years as public company

    Strong track record – 5 years as public company Operating earning per share Book value per share Operating return on equity (diluted) (diluted, including AOCI) (%) 13 $3.60 13 $32.53 13 12% 2 122 $3.43 12 $30.62 12 13% 11 $3.08 11 $26.94 11 13% 10 $3.02 10 $24.44 10 14% 091 $2.67 09 $22.40 091 13% 0

  12. Slide 12: Our strategic priorities

    Our strategic priorities  Prudently grow market position  Proactively manage risk  Actively drive loss mitigation  Maintain strong government relations  Explore strategic opportunities  Maintain solid financial and capital position Genworth MI Canada (TSX: MIC) l 12

  13. Slide 13: Targeted approach to strategic growth

    Targeted approach to strategic growth Market position  Leverage favourable private MI sentiment  Execute on delivering the best customer service  Selectively offer portfolio insurance Risk  Proactively manage housing risk and emerging risks  Enhance governance and oversight  Continuously refin

  14. Slide 14: Key Takeaways

    Key Takeaways (MIC: TSX)  Leading private residential mortgage insurer  Stable housing and mortgage market  Positive sentiment towards private MI  Prudent risk management  Track record of solid profitability  Strong capital generation Genworth MI Canada (TSX: MIC) l 14

  15. Slide 15: Questions?

    Questions? Investor Contact: Samantha Cheung VP Investor Relations 905.287.5482 samantha.cheung@genworth.com www.genworth.ca Genworth MI Canada (TSX: MIC) l 15

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