Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Scotia Capital Financial Summit 2010
18 slides from Sagen MI Canada's conference presentation, Sep 15, 2010
Slide 1: Genworth MI Canada Inc. – Scotia Capital Financial Summit
Genworth MI Canada Inc. Scotia Capital Financial Summit Brian Hurley Chairman and Chief Executive Officer September 15, 2010
Slide 2: 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 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
Slide 4: Leading Private Canadian MI Platform
Leading Private Canadian MI Platform Highly Attractive Mortgage Market Long Standing Relationships with the Largest Lenders Proactive Risk Management Platform Policies 90% Government Guaranteed High Quality Investment Portfolio Strong Financial Position Well-Positioned To Deliver Strong and Consiste
Slide 5: Understanding Mortgage Insurance ("MI")
Understanding Mortgage Insurance (“MI”) Mandatory On Loans With Loan To Value > 80% MI Protects Lenders Against Losses From Mortgage Defaults Covers 100% Of Loan Amount, Secured By Property Insurer Is Responsible For Unpaid Portion Of Loan Less The Sale Price Of The House Plus Real Estate Or
Slide 6: Growth In Canada's MI Industry
Growth In Canada’s MI Industry Lenders Benefit From Capital Mortgage Insurance Industry Premium Growth Relief, Risk Transfer And Funding Flexibility 3.5 Gross Premiums Written ($ billions) Facilitates Homeownership 3.0 : 13 % 2.8 2.9 2.8 AGR For Borrowers 2.5 9C 00 -2 Government Supports Priva
Slide 7: Canada's Stable Mortgage Market
Canada’s Stable Mortgage Market Mortgage Delinquencies Prime Borrowers in Canada vs. U.S. (1994 – Q1 2010) Strong Credit Culture 6% US: 5.02% (Q1 2010) Mortgage Interest Not 5% Mortgage Delinquencies Tax Deductible Current Delinquency: 3.53% 4% Majority Originations From Banks 3% Borrower
Slide 8: Competitive Strengths
Competitive Strengths Solid Lender Best In Class Service Relationships & Technology Risk Collaborative Management Culture Financial Strength 7 Genworth MI Canada Inc.
Slide 9: Our Business Foundation
Our Business Foundation Enterprise Risk Management Portfolio Analytics Quality Assurance Underwriting Guidelines Loss Mitigation Investment Policy & Loan-by-Loan Underwriting Regulatory Compliance 8 Genworth MI Canada Inc.
Slide 10: Well Diversified Insurance Portfolio
Well Diversified Insurance Portfolio Total High Loan to Value Insurance In-Force $186 B Predominantly Fixed Rate Mortgages Geographically Diversified Other 1% Variable Rate Quebec Alberta 25% 14% 15% British Columbia 16% Fixed Rate Prairies 75% Ontario 48% 3% Maritime 3% ~75% of Insured Mortgages Ar
Slide 11: Our Business Model – Premiums Earned
Our Business Model – Premiums Earned Single Premiums Upfront Written Premium Earned Into Revenues & Earned Based On Our Loss Emergence Pattern % Earned by Year 1 2 3 4 5 6 7 8 9 10 $1.9 Billion of Unearned Premium Reserve 10 Genworth MI Canada Inc.
Slide 12: Improving Combined Ratio
Improving Combined Ratio 62% 57% 55% 55% 47% 46% 42% 39% 38% Loss Ratio 32% Expense Ratio 15% 15% 16% 17% 15% Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 11 Genworth MI Canada Inc.
Slide 13: Strongly Capitalized
Strongly Capitalized 160% 154% 149% 150% 150% 147% 140% 140% OSFI Minimum 130% Supervisory MCT Requirement 120% 110% 100% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 Book Value $21.15 $21.95 $22.40 $22.85 $23.56 Per Share 1 (Diluted) 12 Genworth MI Canada Inc.
Slide 14: Proven Track Record of Profitability
Proven Track Record of Profitability Net Operating Income $ Millions $86 $771 $81 $75 $70 $30 $29 $31 $29 Investment $30 $50 $56 $46 $48 Underwriting $40 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 ROE 12% 12% 12%1 13% 13% 1Excludes favorable tax impact of $8 million in Q4 2009 13 Genworth MI Canada Inc.
Slide 15: High Quality Investment Portfolio
High Quality Investment Portfolio $5.2 Billion Investment Portfolio Primarily Fixed Income and Preferred Shares 99% in Securities Rated A or Better Balancing Yield and Quality Conservative and Balanced Approach 14 Genworth MI Canada Inc.
Slide 16: Solid Housing Fundamentals
Solid Housing Fundamentals Improving Employment Levels Stable Strong Consumer Confidence Housing Market Low Mortgage Interest Rates Moderating Home Prices Stable Household Formation – First Time Buyers 15 Genworth MI Canada Inc.
Slide 17: Business Strategy
Business Strategy 1 Grow Premiums Written 2 Proactive Risk Management 3 Enhanced Portfolio Yield 4 Efficient Capital Management Income Growth and Strong Returns 16 Genworth MI Canada Inc.
Slide 18: Genworth MI Canada Inc.
Genworth MI Canada Inc. 2009 Annual Repore company ap Genworth MI Canada Inc.
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