Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Investor Presentation (November 2009)
22 slides from Sagen MI Canada's investor presentation, November 2009
Slide 1: Genworth MI Canada Inc.
Genworth MI Canada Inc. November, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that relate to the Company’s current expectations and views of future events. These forward-looking statements may be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “int
Slide 3: Non-GAAP Measures
Non-GAAP Measures To supplement its financial statements, the Company uses select non-GAAP financial measures. Non-GAAP measures used by the Company to analyze performance include underwriting ratios such as loss ratio, expense ratio and combined ratio as well as other performance measures such as o
Slide 4: Our Strategy is Delivering Results
Our Strategy is Delivering Results Deepen Lender Relationships Maintain Strong Capital Base Continued Focus on Risk Deliver Solid Returns to Management Shareholders Third Quarter 2009 Results Net Operating Income: $75 million Operating EPS: $0.63 ROE: 12% 3
Slide 5: Improving Trends
Improving Trends Slowing Job Losses Market Conditions Strong Housing Market Increasing Consumer Confidence Improving Risk Profile Business Execution Strong Loss Mitigation Results Key Lender Penetration 4
Slide 6: Market Environment
Genworth MI Canada Inc.
Slide 7: Genworth MI Operates in a Highly Attractive Mortgage Market
Genworth MI Operates in a Highly Attractive Mortgage Market 4 • High levels of homeownership 90 Day Delq Rates US vs CAN 3.5 Source: Canadian Bankers Association and Mortgage Bankers Association • Stable Canadian housing market 3 Delinquency Rate % 2.5 • Mandatory mortgage insurance 2 US peak delinq
Slide 8: Affordability and Confidence Improving
Affordability and Confidence Improving Housing Market 120 2.4 110 2.3 CCI & Existing Sales & Completions Indexes 2.2 Inverse of Housing Affordability Index 100 2.1 90 2.0 80 1.9 70 1.8 60 1.7 50 1.6 40 1.5 Year 2006 2007 2008 2009F 2010F # of Sales 483,770 518,369 434,352 432,600 455,400 Existing Sa
Slide 9: Risk Mitigation and Job Loss Stabilization Led to Improved Losses
Risk Mitigation and Job loss Stabilization Led to Improved Losses CBA Delinquency Rate vs. Unemployment Rate 0.70% 12.0% 11.0% 0.60% 10.0% 0.50% CBA Delinquency Rate (%) Unemployment Rate (%) 9.0% 0.40% 8.0% 0.30% 7.0% 0.20% 6.0% 0.10% 5.0% 0.00% 4.0% 1990 1991 1992 1993 1994 1995 1997 1998 1999 200
Slide 10: Financial Strength
Genworth MI Canada Inc.
Slide 11: Q3 Financial Results
Q3 Financial Results Improving Premiums Written and Lower Losses on Claims $ Millions Except EPS • Net premiums written: $104 Net Income: $79 • Net premiums earned: $154 Net Operating Income: $75 • Losses on Claims: $64 Operating EPS: $0.63 • Investment income: $431 10% Sequential Increase in Net Op
Slide 12: Solid Financial Performance
Solid Financial Performance Improving Underwriting Results … 70% 63% 1 62% 57% 54% 60% Expense 20% 15% 50% 13% 15% Ratio 41% 40% 30% 14% Higher Net Operating Income 20% 42% 41% 46% 42% Loss 100 $MM 27% 10% Ratio 0% 80 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 60 1 40 85 77 75 74 69 Stable Investment Income2 … 2
Slide 13: Delinquencies Are Improving And Stabilizing
Delinquencies Are Improving And Stabilizing September 30, 2009 Insurance in Force $220 Billion Delinquency Rate 30-Sept-08 30-June-09 30-Sept-09 Ontario 48% 0.22% 0.30% 0.25% BC 16% 0.11% 0.21% 0.23% Alberta 15% 0.24% 0.47% 0.50% Quebec 14% 0.25% 0.29% 0.29% Other1 7% Total Delinquency 0.21% 0.30% 0
Slide 14: High Quality Investment Portfolio
High Quality Investment Portfolio Total: $5.0 Billion • Diversified High Quality Portfolio 98% Cash or Investments Rated A or Higher Positive AOCI of $104 million • No Impairments • Initiatives Underway To Reduce Cash Enhance Yield While Maintaining Portfolio Quality Average Duration: 3.2 years Book
Slide 15: Strong Capitalization Continues
Strong Capitalization Continues Regulatory Minimum Capital Test (MCT) Shareholders’ $1.99 $2.09 $2.25 $2.37 $2.59________ Equity ($ Billions) Positioned For Growth Going Forward 14
Slide 16: Competitive Advantages
Competitive Advantages
Slide 17: Our Competitive Strengths
Our Competitive Strengths • Established relationships with over 180 mortgage Strong Lender Relationships lenders and originators with over 10 years of history with each of top 10 lenders Best in Class Service • Fully integrated into lenders’ value chain driven by And Technology differentiated servic
Slide 18: Highly Predictive, Automated Underwriting Platform
Highly Predictive, Automated Underwriting Platform Electronic Mortgage Application Genworth MI Canada Proprietary Underwriting System • Point of Sale technology Credit Evaluation Property Valuation Risk Rules Assessment Proprietary Mortgage Scoring System • Rigorously applied criteria Referred to Un
Slide 19: Comprehensive Risk Management
Comprehensive Risk Management Enterprise Risk Management Portfolio Analytics Quality Assurance Underwriting Guidelines Loss Mitigation Investment Policy & Loan-By-Loan Underwriting Regulatory Compliance Risk management key to minimizing losses and driving earnings; risk management program is adjuste
Slide 20: Summary
Summary Genworth MI Canada Inc.
Slide 21: Key Themes
Key Themes • Strong Business Execution • Improving Economic Conditions • Pro-active Risk Management • Solid Capital Structure • Best in Class Customer Service Well-Positioned To Deliver Strong Returns 20
Slide 22: Genworth MI Canada Inc.
Genworth MI Canada Inc. For further information: Samantha Cheung, VP Investor Relations 905-287-5482 samantha.cheung@genworth.com www.genworth.ca
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