Sagen MI Canada Inc · TSX:MIC.PR.A
Sagen MI Canada — Genworth MI Canada — Q1 2016 Earnings Presentation
14 slides from Sagen MI Canada's earnings presentation, Apr 29, 2016
Slide 1: First Quarter 2016 Results
First Quarter 2016 Results April 29th, 2016 Q1 2016 Results Genworth MI Canada Inc. 1
Slide 2: Forward-looking and non-IFRS statements
Forward-looking and non-IFRS statements Public communications, including oral or written communications such as this document, relating to Genworth MI Canada Inc. (the “Company”, “Genworth Canada” or “MIC”) often contain certain forward-looking statements. These forward-looking statements include, b
Slide 3: Q1 2016 financial results
Q1 2016 financial results $MM except ROE, EPS & Q1 Q4 Q1 Q/Q Y/Y Q1 key highlights 2016 2015 2015 MCT Premiums written $117 $213 $130 -45% -10% • Top-line constrained primarily due to targeted underwriting changes and a smaller transactional Loss ratio 24% 23% 22% +1 pt +2 pts insurance market Net O
Slide 4: 2016 key themes
2016 key themes Economic environment Market dynamics Regulatory changes Implications • Low oil prices • Flat-to-modestly • New standardized • Moderately lower total smaller high LTV capital test for mortgage premiums written • Modest economic mortgage originations insurers growth (GDP) market • Mode
Slide 5: Top line
Top line New insurance written ($ billions) Net premiums written ($ millions) Transactional Portfolio Transactional Portfolio $705 $104 $25.2 $25.7 Q4 $6.2 Q4 $181 $32 $9.6 Q3 $8.3 ~$22.0 Q3 $236 $24 $6.1 $22 Q2 $6.8 $4.1 Q2 $183 $5.9 $4.5 $26 Q1 $3.9 $3.4 Q1 $104 $99 $18 2015 Q1'16 2015 Q1'16 2015
Slide 6: Portfolio quality improving
Portfolio quality improving Credit score Median home price (In ‘$000s) Average gross debt service ratio (%) % Score <660 (R) Avg score (L) 16% 751 $301 $295 $291 $280 $275 $270 $255 $240 $232 $225 25% 25% 24% 24% 24% 24% 24% 23% 23% 22% 716 3% '07 '08 '09 '10 '11 '12 '13 '14 '15 Q1'16 '07 '08 '09 '1
Slide 7: Outstanding delinquencies
Outstanding delinquencies 2,034 Highlights 1,792 1,829 162 1,666 1,715 Prairies1 102 132 222 97 113 Atlantic 216 204 191 198 656 • Delinquencies up 11% Q/Q, primarily due to Quebec 584 624 579 578 seasonality and pressure in oil-producing regions Alberta 220 424 227 258 303 • Delinquencies increased
Slide 8: Alberta: proactive risk management
Alberta: proactive risk management Geographically diversified portfolio Regional Transactional NIW Dispersion 2016 highlights 100% 13% 12% 12% 12% Enhanced due diligence resulting in 80% 10% 12% 13% 15% slightly smaller but better quality 14% 12% 12% 11% Alberta portfolio 60% 38% 38% 40% 39% 42% Une
Slide 9: Solid financial performance
Solid financial performance $MM except EPS & BVPS Q1’16 Q4’15 Q1’15 Q1 highlights Transactional premiums written $99 $181 $104 Portfolio premiums written 18 32 26 • Transactional premiums written lower by 5% Y/Y Total premiums written $117 $213 $130 • Premiums earned increased Q/Q by $3 million Prem
Slide 10: Solid underwriting profitability
Solid underwriting profitability Underwriting profitability ($ millions) New delinquencies net of cures by region Premiums earned $143 $144 $148 $151 $154 Total 432 319 440 487 568 38 Losses on claims 25 31 35 37 92 31 Prairies1 33 13 26 82 24 29 28 27 28 Atlantic 76 76 138 Expenses 2 Quebec 130 58
Slide 11: Investments contribute steady income
Investments contribute steady income Total Invested Assets ($5.9B portfolio1) Net Investment Income ($ millions) 17% Federals Duration: 3.7 years Provincials Book yield: 3.1%1 33% Investment grade Invested assets corporates2 (C$ millions, unless noted) Preferred shares Net $5.9B $5.9B Emerging marke
Slide 12: Capital management
Capital management Regulatory capital at 220% MCT holding target (by risk category, $ millions) Highlights 3,633 3,636 • MCT ratio of 234%: Capital in 219 217 excess of 220% • Introduced interest rate hedging Operational Risk 569 570 program Market Risk1 449 436 Strength • Strong portfolio insurance
Slide 13: Key takeaways
Key takeaways Keen focus on risk management Proven Balanced approach to writing new business business model has positioned MIC for Proactive loss mitigation future programs performance Investing in our customer experience strategy Q1 2016 Results Genworth MI Canada Inc. 13
Slide 14: Investor Relations
Jonathan A. Pinto, MBA, LL.M Vice President, Investor Relations 905.287.5482 jonathan.pinto@genworth.com Investor Relations investor.genworthmicanada.ca investor@genworth.com Q1 2016 Results Genworth MI Canada Inc. 14