Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q3 2010 Earnings Presentation
20 slides from Sagen MI Canada's earnings presentation, Oct 29, 2010
Slide 1: Third Quarter 2010 Results
Third Quarter 2010 Results October 29, 2010 Genworth MI Canada Inc.
Slide 2: Agenda
Agenda • Business Strategy And Outlook • Financial Review • Operational Highlights • Question And Answer Session 1 Genworth MI Canada Inc.
Slide 3: Forward-Looking Statements
Forward-Looking 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 expenditure pl
Slide 4: 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
Slide 5: Business Update
Business Update Brian Hurley, Chairman and CEO
Slide 6: Strong Operating Results for Q3 2010
Strong Operating Results for Q3 2010 Net Operating Income $92 Million Operating EPS (diluted) $0.81 Return On Equity 14% $5.3 Billion Assets and $2.6 Billion Shareholders’ Equity Solid Improvement in All Key Measures 5 Genworth MI Canada Inc.
Slide 7: Market Snapshot
Market Snapshot Moderating Home Prices Solid Consumer Confidence Continued Low Mortgage Interest Rates Stabilizing Unemployment Normalizing Mortgage Market 6 Genworth MI Canada Inc.
Slide 8: Business Highlights
Business Highlights Net Premiums Written Growth Diligent Risk Management Strong Financial Foundation Positioned for Growth 7 Genworth MI Canada Inc.
Slide 9: Execution Of Capital Plan On Target
Execution Of Capital Plan On Target Completed $325 Million Share Repurchase Announced Quarterly Dividend Increase to $0.26 Per Common Share Sufficient Capital for Growth and Stress Scenarios 8 Genworth MI Canada Inc.
Slide 10: Financial Highlights
Financial Highlights Philip Mayers, CFO
Slide 11: Q3 2010 Financial Results
Q3 2010 Financial Results $ Millions Except Per Share Amounts Q3 10 Q2 10 Net Premiums Written $166 $157 Premiums Earned 155 154 Losses on Claims 47 49 Underwriting Income 82 81 Investment Income (Net of Gains / Losses) 45 42 Net Operating Income $92 $86 Operating EPS (Diluted) $0.81 $0.73 Operating
Slide 12: Combined Ratio
Combined Ratio 62% 57% 54% 55% 55% 15% Combined 46% 15% 47% 47% Ratio 13% 16% 17% 15% 15% Expense 33% 17% Ratio 14% 46% 42% 41% 39% Loss 38% 31% 32% 30% Ratio 19% 1 '07 '08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 1 Including impact of changes to the premium recognition curve, loss ratio and expens
Slide 13: Proven Track Record of Profitability
Proven Track Record of Profitability Net Operating Income $ Millions $922 Tax $85 $86 $5 Adjustment $81 $75 $8 Tax Adjustment Net Operating Income $70 $33 $30 $29 $31 $29 Investment Income3 $30 $50 $56 $57 Underwriting Income3 $46 $48 $40 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Core Net Operating $70 $7
Slide 14: High Quality Investment Portfolio
High Quality Investment Portfolio Portfolio Distribution $4.9 Billion Investment Management Preferreds 1% Conservative and Balanced Approach Asset Backed 5% Corporates Fixed Income and Preferred Shares 44% 97% in Securities Rated A or Better Provincials 13% Federal Government Balancing Yield and Qua
Slide 15: Strong Capital Position
Strong Capital Position 160% MCT Internal MCT Target 154% 153% 149% 150% 150% 147% 140% 140% 130% 120% OSFI’s Minimum Supervisory MCT Requirement 110% 100% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 Book Value Per Share $21.15 $21.95 $22.40 $22.84 $23.56 $24.30 (Diluted)1 1 Includes Accumulated Other Compr
Slide 16: Operational Highlights
Operational Highlights Peter Vukanovich, President and COO
Slide 17: Operational Highlights
Operational Highlights Continued Outstanding Customer Service Ongoing Technology and Process Improvements Deeper Penetration of Loss Mitigation Initiatives Branding Through Community Participation 16 Genworth MI Canada Inc.
Slide 18: Mortgage Portfolio Performance
Mortgage Portfolio Performance Insurance in-Force Sept. 30, 2010 Delinquency Rate 30-Sept-10 30-Jun-10 31-Mar-10 Ontario 47% 0.17% 0.19% 0.23% BC 16% 0.27% 0.26% 0.25% Alberta 15% 0.58% 0.57% 0.55% Quebec 15% 0.21% 0.24% 0.30% Other 7% 0.19% 0.17% 0.17% Canada 0.25% 0.26% 0.28% 17 Genworth MI Canada
Slide 19: Our Focus
Our Focus Grow Premiums Written Proactive Risk Management Enhance Portfolio Yield Efficient Capital Management Income Growth and Strong Returns 18 Genworth MI Canada Inc.
Slide 20: Question and Answer Session
Question and Answer Session October 29, 2010 For further information: Samantha Cheung, VP Investor Relations 905-287-5482 samantha.cheung@genworth.com www.genworth.ca