Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q2 2012 Earnings Presentation
13 slides from Sagen MI Canada's earnings presentation, Aug 1, 2012
Slide 1: Second Quarter 2012
Genworth MI Canada Inc. Second Quarter 2012 August 1, 2012
Slide 2: Speakers
Speakers Brian Hurley Philip Mayers Genworth MI Canada Inc. 2 Q2 2012 August 1, 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 Q2 2012 Q1 2012 Q2 2011 Net operating income $79 MM $76 MM $81 MM Return on equity 12% 12% 13% Operating earnings per share $0.79 $0.77 $0.77 (diluted) Book Value Per Share (Diluted, including AOCI) 27.88 27.31 25.59 Q2 2011 Q1 2012 Q2 2012 Genworth MI Canada Inc. 4
Slide 5: Q2 2012 highlights
Q2 2012 highlights Demonstrated top line growth High ratio volumes reflect spring market and broader lender footprint Higher portfolio insurance volumes in Q2 2012 Loss ratio improvement to 32% Regional delinquency improvement led by Alberta Continued successful loss mitigation execution
Slide 6: Recent regulatory developments
Recent regulatory developments Government changes result in smaller high loan-to-value market Maximum amortization of 25 years Maximum LTV of 80% for refinances Maximum property value of $1 million Maximum gross debt service and total debt service ratios CMHC now subject to OSFI oversigh
Slide 7: Improving delinquency performance
Improving delinquency performance Mortgage insurance portfolio Insurance delinquency rate in-force June 30 Mar 31 June 30 June 30 2012 2012 2011 2012 Ontario 0.10% 0.11% 0.17% 46% BC 0.22% 0.24% 0.31% 16% Alberta 0.29% 0.35% 0.53% 16% Quebec 0.22% 0.24% 0.23% 14% Other 0.14% 0.17% 0.19% 8% Canada 0.
Slide 8: Continued profitability
Continued profitability $ MM Q2 2012 Q1 2012 Q2 2011 (except EPS and BVPS) Net premiums written $ 176 $ 79 $ 149 Premiums earned 148 147 151 Losses on claims (48) (56) (50) Underwriting income 76 65 77 Investment income 40 43 43 (excluding gains / losses) Net operating income $ 79 $ 76 $ 81 Operatin
Slide 9: Top line performance
Top line performance Gross Premiums Written ($MM) Typical spring market for high LTV Portfolio 6 Low LTV 20 47 business Refinances 11 Successfully executing portfolio High LTV Purchases 3 insurance strategy 9 High LTV 126 121 Recent product changes result in 70 smaller mortgage insurance marke
Slide 10: Consistent underwriting results
Consistent underwriting results Underwriting Profit ($MM) Premiums Earned $151 $147 $148 Losses on 48 50 Claims 56 Premiums earned moderating Expenses 25 26 25 Loss ratio of 32% reflects seasonal decline in delinquencies & loss mitigation U/W Profit 77 65 76 execution Generates steady underwri
Slide 11: Investment portfolio adds income stability
Investment portfolio adds income stability Common, 5% Preferred, 0.4% Guar. Fund, 15% Primarily fixed income Cash, 3% 96% of bonds ‘A’ or better Corporates, Total $5.1B Federal, 3.5 year duration 45% General Fund 16% $4.3B $302 MM common and preferred equities 4.3% book yield1 Provincial,
Slide 12: Strong capital position with flexibility
Strong capital position with flexibility Minimum Capital Test Ratio 159% 158% 160% Internal MCT Target 145% Q2 2011 Q1 2012 Q2 2012 Leverage1 14% 13% 13% ROE 13% 12% 12% 1. Debt to total capital Genworth MI Canada Inc. 12 Q2 2012 August 1, 2012
Slide 13: 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. 13 Q2 2012 August 1, 2012