Presentation des resultats financiers du deuxieme trimestre 2013 de Genworth MI Canada, Inc.

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Presentation des resultats financiers du deuxieme trimestre 2013 de Genworth MI Canada, Inc.

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Presentation des resultats financiers du deuxieme trimestre 2013 de Genworth MI Canada, Inc.

  1. 1. Second  Quarter  2013   July  31,  2013   Genworth MI Canada Inc.
  2. 2. Q22013 July 31, 2013Genworth MI Canada Inc. 2 Forward-­‐looking  and  non-­‐IFRS  statements   This  presenta?on  includes  certain  forward-­‐looking  statements.  These  forward-­‐looking  statements  include,  but  are  not  limited  to,   statements  with  respect  to  the  Company’s  future  opera?ng  and  financial  results,  expecta?ons  regarding  premiums  wriIen,   capital  expenditure  plans,  dividend  policy  and  the  ability  to  execute  on  its  future  opera?ng,  inves?ng  and  financial  strategies,  and   other  statements  that  are  not  historical  facts.  These  forward-­‐looking  statements  may  be  iden?fied  by  their  use  of  words  such  as   “may,”  “would,”  “could,”  “will,”  “expects,”  “an?cipates,”  “contemplates,”  “intends,”  “plans,”  “believes,”  “seeks,”  “es?mates,”  or   words  of  similar  meaning.  These  statements  are  based  on  the  Company’s  current  assump?ons,  including  assump?ons  regarding   economic,  global,  poli?cal,  business,  compe??ve,  market  and  regulatory  maIers.  These  forward-­‐looking  statements  are   inherently  subject  to  significant  risks,  uncertain?es  and  changes  in  circumstances,  many  of  which  are  beyond  the  control  of  the   Company.  The  Company’s  actual  results  may  differ  materially  from  those  expressed  or  implied  by  such  forward-­‐looking   statements,  including  as  a  result  of  changes  in  the  facts  underlying  the  Company’s  assump?ons,  and  the  other  risks  described  in   the  Company’s  Annual  Informa?on  Form  dated  March  29,  2013,  its  Short  Form  Base  Shelf  Prospectus  dated  May  31,  2012,  the   Prospectus  Supplements  thereto  and  all  documents  incorporated  by  reference  in  such  documents.  Other  than  as  required  by   applicable  laws,  the  Company  undertakes  no  obliga?on  to  publicly  update  or  revise  any  forward-­‐looking  statement,  whether  as  a   result  of  new  informa?on,  future  developments  or  otherwise.       To  supplement  its  financial  statements,  the  Company  uses  select  non-­‐IFRSs  financial  measures.  Non-­‐IFRSs  measures  used  by  the   Company  to  analyze  performance  include  underwri?ng  ra?os  such  as  loss  ra?o,  expense  ra?o  and  combined  ra?o,  as  well  as   other  performance  measures  such  as  net  opera?ng  income  and  return  on  net  opera?ng  income.  The  Company  believes  that  these   non-­‐IFRSs  financial  measures  provide  meaningful  supplemental  informa?on  regarding  its  performance  and  may  be  useful  to   investors  because  they  allow  for  greater  transparency  with  respect  to  key  metrics  used  by  management  in  its  financial  and   opera?onal  decision  making.  Non-­‐IFRSs  measures  do  not  have  standardized  meanings  and  are  unlikely  to  be  comparable  to  any   similar  measures  presented  by  other  companies.  These  measures  are  defined  in  the  Company’s  glossary,  which  is  posted  on  the   Company’s  website  at  hIp://investor.genworthmicanada.ca.  A  reconcilia?on  from  non-­‐IFRSs  financial  measures  to  the  most   readily  comparable  measures  calculated  in  accordance  with  IFRSs  can  be  found  in  the  Company’s  most  recent  financial   statements,  which  are  posted  on  the  Company’s  website  and  are  also  available  at  www.sedar.com.      
  3. 3. Q22013 July 31, 2013Genworth MI Canada Inc. 3 Net  opera?ng  income  higher  by  11%     Net  opera?ng  income   $88  million   $79  million   Opera?ng  Return  on  equity   12%   12%   Opera?ng  earnings  per  share  (diluted)   $0.89   $0.79   Q2  2013   Q2  2012   Book  Value  Per  Share  (diluted,  including  AOCI)   $27.88 $28.72 $30.62 $31.32 $30.94 Q2  2012 Q3  2012 Q4  2012 Q1  2013 Q22013 11%  CAGR    
  4. 4. Q22013 July 31, 2013Genworth MI Canada Inc. 4 Solid  results  for  Q2  2013   Priority   Result      Premiums    wriIen   $137  million  of  new  premiums  wriIen      Prudent  risk  management   Loss  ra?o  of  25%      Investment  porbolio  return   $5.3  billion  investment  porbolio   Book  yield  of  3.6%  as  at  June  30,  2013      Capital  strength   Minimum  capital  test  of  216%        Dividends  and  return  to   shareholders   Quarterly  dividend  of  $0.32  per  common  share   Repurchased  $50  million  in  common  shares  
  5. 5. Q22013 July 31, 2013Genworth MI Canada Inc. 5 Broad  based  improvement  in  delinquencies   Number of delinquencies & Delinquency rate Insurance   in-­‐force   June  30    2013   March  31    2013   June  30    2012   June  30    2013   Ontario   453   533   649   46%   BC   318   337   395   15%   Alberta   301   337   551   16%   Quebec   451   507   587   14%   Other   255   249   226   9%   Total   1,778   1,963   2,408   100%   Delinquency  rate   0.12%   0.14%   0.17%   26%  decline  in  number  of  delinquencies  over  prior  year  
  6. 6. Q22013 July 31, 2013Genworth MI Canada Inc. 6 2013  New  Insurance  WriZen     •  Average  credit  score  732   •  Average  GDS*  of  23%   •  Home  prices  up  a  modest  4%   •  89%  locking  in  the  5-­‐yr  fixed  rate   •  Average  home  purchase  price  $318K   *  GDS  =  Gross  Debt  Service  which  represents    principal,   interest  and  taxes  as  a  %  of  gross  family  income     Canadian  market  update   Macroeconomic  environment   •  Solid  outlook  for  Canadian  economy   •  Unemployment  rate  stable   •  Monetary  policy  suppor?ng  growth   Housing  market     Balanced  housing  market     Low  interest  rates  con?nue     Trending  towards  a  som  landing      
  7. 7. Q22013 July 31, 2013Genworth MI Canada Inc. 7 Demonstrated  track  record  of  performance   $  millions  (except  EPS)   Q2  2013   Q1    2013   Q2    2012   Net  premiums  wriZen   $137   $84   $176   Premiums  earned   143   144   148   Losses  on  claims   (35)   (44)   (48)   Underwriang  income   82   74   76   Net  investment  income     (excluding  gains/losses)   44   45   40   Net  operaang  income   $88   $85   $79   Operaang  EPS  (diluted)   $0.89   $0.86   $0.79   Book  value  per  share   (diluted  and  including  AOCI)   $30.94   $31.32   $27.88  
  8. 8. Q22013 July 31, 2013Genworth MI Canada Inc. 8 Core  business  steady,  in  line  with  market    121      160      99      71      108      11      10      3      3      3      47      11      17      11      26     Q2  2012  Q3  2012  Q4  2012  Q1  2013  Q2  2013   ($millions)   Refinance   Gross    PW   179   181   119   84   137   Risk  premium   (2)   (3)   (2)   -­‐   -­‐   Net    PW   $176   $178   $117   $84   $137   Purchase   Pordolio   Premiums  wriZen   Q2‘12   Q3‘12   Q4‘12   Q1‘13   Q2‘13   $1.7  billion  in  unearned  premiums     2012  product  changes  have  resulted  in   slower  real  estate  ac?vity       Premiums  from  purchases  down  10%  year-­‐ over-­‐year  consistent  with  slower  resale   volumes         Con?nued  to  selec?vely  par?cipate  in   porbolio  insurance   (PW  represents  premiums  wriIen)  
  9. 9. Q22013 July 31, 2013Genworth MI Canada Inc. 9 Solid  underwri?ng  performance   76 77 73 74 82 25 26 28 26 26 48 44 46 44 35 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 $148   Underwriang  profit   $143  Premiums  earned   Underwriang   profit   Expenses   Losses  on   claims   $144   Loss  ra?o   32%   30%   31%   31%   25%   Expense    ra?o   17%   18%   19%   18%   18%   Combined   raao   49%   48%   50%   49%   43%     Strong  porbolio  quality  &  stable   economic  condi?ons  posi?vely   influencing  loss  performance       New  reported  delinquencies   declined  by  9%  sequen?ally     Q2  loss  ra?o  of  25%,  improved  by  6   points       $147   $147   Consistent  underwriang  profit   ($millions)  
  10. 10. Q22013 July 31, 2013Genworth MI Canada Inc. 10 Cash 5% Federal 37% Provincial 13% Corporates 41% Common Equity 5% Investment  porbolio  remains  high  quality     Balanced  high  quality  porbolio   •  50%  federal  &  provincial  bonds   •  41%  corporate  bonds   •  95%    of  bonds  ‘A’  or  higher     $193  million  posi?ve  mark-­‐to-­‐market    Total       $5.3  billion   1Pre-­‐tax  equivalent  book  yield  amer  dividend  gross-­‐up  of  general   porbolio  (as  at  June  30,  2013)   $  Billion   Pordolio   Assets  (MV)                     $5.3   Pre-­‐tax  yield1   3.6  %   Dura?on   3.6  years  
  11. 11. Q22013 July 31, 2013Genworth MI Canada Inc. 11 Strong  capital  posi?on  with  flexibility   145% 145% 145% 185% 185% 11% 17% 25% 31% 31% 156% 162% 170% 216% 216% 2010 2011 2012 Q1  2013 Q2  2013 Minimum  Capital  Test  Raao  (MCT  raao)   Internal  MCT  raao  target   Repurchased  $50  million  common  shares  during  quarter  
  12. 12. Q22013 July 31, 2013Genworth MI Canada Inc. 12 Proven  business  model   Disciplined  execuaon   Strong  risk  focus   Capital  flexibility   Solid  financial  foundaaon   Our  core  strengths!
  13. 13. Q22013 July 31, 2013Genworth MI Canada Inc. 13 Ques?on  and  Answer   SAMANTHA  CHEUNG     VP  INVESTOR  RELATIONS     905  287  5482   samantha.cheung@genworth.com     www.genworth.ca   For  further  info:  

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