Sagen MI Canada Inc · TSX:MIC.PR.A

Sagen MI Canada — Genworth MI Canada — Q1 2015 Earnings Presentation

13 slides from Sagen MI Canada's earnings presentation, Apr 29, 2015

  1. Slide 1: First Quarter 2015

    Genworth MI Canada Inc. First Quarter 2015 April 29, 2015

  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 ope

  3. Slide 3: Q1 2015 Financial Results

    Q1 2015 Financial Results Q1 Q4 Q1 Q/Q Y/Y Quarter Highlights 2015 2014 2014  Strong top line growth of +55% Y/Y Premiums written $130 $178 $84 -27% +55% (MM)  Loss ratio of 22%, 4 pt. improvement Q/Q Loss ratio 22% 26% 20% -4 pts +2 pts  +15% growth in net operating income Q/Q Net Operating $97

  4. Slide 4: High Quality Insurance Portfolio

    High Quality Insurance Portfolio 737 737 Average 730 733 Highlights 726 727 727 Credit Score  Steady credit score improvement since 2009 '09 '10 '11 '12 '13 '14 Q1'15  Average home price 23% below CREA national average price of $424K Average  Home price increase driven by higher Home Price concen

  5. Slide 5: Genworth's served market

    Genworth’s served market Average Average Region Average Home Price Gross Debt Income Servicing Genworth Market % Variance Genworth Genworth Vancouver $486K $847K -43% $115K 28% Toronto $447K $589K -24% $108K 29% Calgary $421K $445K -5% $113K 27% Rest of Canada $297K $334K -11% 94K 24% Canada $326K $

  6. Slide 6: Stable Delinquency Trend

    Stable Delinquency Trend Outstanding Delinquencies Highlights  4% decline in Y/Y delinquency led by Ontario, 1,860 BC and Alberta Prairies 78 1,703 1,708 1,756 1,792 92 102 206 75 76 Atlantic 198 199 207 216  Delinquencies up modestly Q/Q due to typical seasonality Quebec 527 511 516 569 584 Alber

  7. Slide 7: Market Environment

    Market Environment Market Dynamics Impact to Business  Oil is anticipated to be in the $55-$65  Unemployment rate modestly higher and USD range for 2015 home prices modestly lower in oil producing regions (Alberta,  2015 GDP outlook of 1.9% Newfoundland, Saskatchewan)  Canadian dollar expected t

  8. Slide 8: Solid Financial Performance

    Solid Financial Performance $MM except EPS and BVPS Q1’15 Q4’14 Q1’14 Q1 Highlights Premiums written $130 $178 $84  Strong top line performance was Premiums earned 143 143 141 primarily result of market penetration Losses on claims 31 37 28 Expenses 24 30 27  Loss ratio of 22% Underwriting income

  9. Slide 9: Strong Premiums Written Growth

    Strong Premiums Written Growth Premiums Written Highlights ($millions) $130  15% premium rate increase effective June 1 26 on >90% loan-to-value Portfolio VPY +100% $84 Incremental Premiums Written (Low LTV) (2014 & 2015 Price Increases on $22 B of Transactional NIW Example) 13 ($MM) 104 VPY +47% 2

  10. Slide 10: Solid Underwriting Profitability

    Solid Underwriting Profitability Underwriting Profitability ($millions) Highlights Premiums earned $141 $141 $140 $143 $143 Losses on claims 28 17 30 37 31  Loss ratio improved 4 pts. Q/Q 27  Improved Quebec performance 27 24 24 Expenses 30  Low level of Alberta delinquencies Underwriting 86 97 8

  11. Slide 11: Investments Contribute Steady Income

    Investments Contribute Steady Income Highlights  Focus on high investment quality Preferred Equity Cash Common Equity 2% 4%  Diversified portfolio with over 50% 2% government securities and cash Corporates Federal  Reduced common equities given higher 43% 33% regulatory capital requirements (2015

  12. Slide 12: Strong Capital Position

    Strong Capital Position Minimum Capital Test Ratio (MCT) Highlights 231% 233% 224% 225%  Holding company cash and liquid securities of 46% $158 million 39% 40% 48%  Focused on balancing capital strength, flexibility and efficiency 185% 185% 185% 185%  Intend to operate moderately above the 220% M

  13. Slide 13: Question and Answer

    Question and Answer Contact: Samantha Cheung Vice-President, Investor Relations 905.287.5482 samantha.cheung@genworth.com investor@genworth.com www.genworth.ca Genworth MI Canada Inc. 13 Q1 2015

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