This document provides a tutorial on mortgage insurance losses and captive reinsurance arrangements. It includes examples of how losses are calculated on insured loans and reinsurance is structured through captive insurance agreements. Captive reinsurance involves the lender establishing a captive that takes on a portion of losses above an attachment point in exchange for a share of premiums. The examples show how losses are tracked over time and the timing of benefits to the mortgage insurer and captive.
The document discusses FDIC-insured deposits as an investment opportunity with higher yields than Treasuries. It notes the full faith and credit guarantee by the US government for deposits up to $250,000 per depositor per institution. It also discusses the challenges institutional investors face in taking advantage of these higher yields, including sourcing deposits from many banks, tracking insurance limits, and liquidity issues. The document proposes a structural platform to source, screen, and construct portfolios of FDIC-insured deposits to help institutional investors overcome these hurdles.
The document discusses FDIC-insured deposits as an investment opportunity with higher yields than Treasuries. It notes the full faith and credit guarantee by the US government for deposits up to $250,000 per depositor per institution. It also discusses the structural platform that would source, screen, and construct portfolios of FDIC-insured deposits to overcome hurdles to institutional investment, such as managing insurance limits and minimizing intermediary costs and fees. The platform would source both new issues and secondary market deposits to benefit buyers and sellers.
Martin Bardsley: Risk sharing and risk pooling in healthNuffield Trust
This document summarizes key points from a presentation on financial risk sharing and risk pooling in the English NHS. It discusses the importance of managing financial risk under new models of commissioning and provision. It outlines different sources of variance from budgets and examines strategies like risk bearing, sharing, and transferring. It also analyzes the impacts of factors like population size, time periods, and truncation thresholds on financial risk for clinical commissioning groups. The document concludes by identifying several important issues to address going forward around appropriate levels of risk, risk pooling mechanisms, regional differences, and rules for underspends and overspends.
Your Guide To Participating Life InsuranceLawrence Cole
London Life participating life insurance provides permanent life insurance with guaranteed values and tax-advantaged growth potential. Policyholders have the opportunity to receive annual dividends based on the performance of over 1.5 million policies in the participating account. The guide outlines the key components of participating policies, including guaranteed values, investment performance, dividends, and flexibility through optional riders and benefits. It emphasizes the financial strength and stability of London Life as the largest participating life insurer in Canada with over 150 years of experience.
This document contains information about a 10-year bond with a face value of $1,000, coupon rate of 10%, and yield to maturity of 10%. It calculates the bond's price of $1,000 using the present value of cash flows. It also shows the bond's duration is 6.76 years and how its price would change with a change in interest rates based on duration.
This document provides an outlook and strategic focus areas for El Paso Corporation in 2008. It aims to accelerate the company's progress toward becoming a "top tier" performer by completing divestitures, achieving production targets, growing non-proved inventory, and improving capital and expense efficiency. The majority of El Paso's $1.7 billion capital program is directed toward lower risk domestic development and international projects. Key metrics for 2008 include targeted production of 860-920 million cubic feet equivalent per day and EBITDA of $1.7-1.9 billion. The outlook emphasizes high-quality assets, repeatable drilling programs, greater onshore weighting, value creation, and continued operational improvement to enable visible multi-year production growth
Bankers Life and Casualty Shares Company ProfileAlyssa Jennings
Bankers Life and Casualty Company is a subsidiary of CNO Financial Group, with over $4 billion in annual revenue. Bankers offers a variety of insurance products including Medicare Supplement insurance, long-term care insurance, life insurance, and annuities. In 2009, Bankers had $11.8 billion in assets under management, over 1.3 million policies in force, and $3 billion in collected premiums. Bankers focuses on outstanding customer service and has over 200 branch offices and 5,000 agents serving policyholders across the United States.
- The document summarizes Gafisa's third quarter 2009 results conference call.
- Key highlights include a 43% decrease in launches but a 48% increase in contracted sales compared to the previous year. Net revenues increased 131% while gross margins decreased.
- Recent developments discussed include strong sales in mid-to-mid-high segments, expansion of the affordable housing program, and plans to merge shares of Tenda into Gafisa to increase scale and efficiency.
- Gafisa has a diversified land bank of 313 sites in 21 states representing over 15 billion reais in potential sales.
The document discusses FDIC-insured deposits as an investment opportunity with higher yields than Treasuries. It notes the full faith and credit guarantee by the US government for deposits up to $250,000 per depositor per institution. It also discusses the challenges institutional investors face in taking advantage of these higher yields, including sourcing deposits from many banks, tracking insurance limits, and liquidity issues. The document proposes a structural platform to source, screen, and construct portfolios of FDIC-insured deposits to help institutional investors overcome these hurdles.
The document discusses FDIC-insured deposits as an investment opportunity with higher yields than Treasuries. It notes the full faith and credit guarantee by the US government for deposits up to $250,000 per depositor per institution. It also discusses the structural platform that would source, screen, and construct portfolios of FDIC-insured deposits to overcome hurdles to institutional investment, such as managing insurance limits and minimizing intermediary costs and fees. The platform would source both new issues and secondary market deposits to benefit buyers and sellers.
Martin Bardsley: Risk sharing and risk pooling in healthNuffield Trust
This document summarizes key points from a presentation on financial risk sharing and risk pooling in the English NHS. It discusses the importance of managing financial risk under new models of commissioning and provision. It outlines different sources of variance from budgets and examines strategies like risk bearing, sharing, and transferring. It also analyzes the impacts of factors like population size, time periods, and truncation thresholds on financial risk for clinical commissioning groups. The document concludes by identifying several important issues to address going forward around appropriate levels of risk, risk pooling mechanisms, regional differences, and rules for underspends and overspends.
Your Guide To Participating Life InsuranceLawrence Cole
London Life participating life insurance provides permanent life insurance with guaranteed values and tax-advantaged growth potential. Policyholders have the opportunity to receive annual dividends based on the performance of over 1.5 million policies in the participating account. The guide outlines the key components of participating policies, including guaranteed values, investment performance, dividends, and flexibility through optional riders and benefits. It emphasizes the financial strength and stability of London Life as the largest participating life insurer in Canada with over 150 years of experience.
This document contains information about a 10-year bond with a face value of $1,000, coupon rate of 10%, and yield to maturity of 10%. It calculates the bond's price of $1,000 using the present value of cash flows. It also shows the bond's duration is 6.76 years and how its price would change with a change in interest rates based on duration.
This document provides an outlook and strategic focus areas for El Paso Corporation in 2008. It aims to accelerate the company's progress toward becoming a "top tier" performer by completing divestitures, achieving production targets, growing non-proved inventory, and improving capital and expense efficiency. The majority of El Paso's $1.7 billion capital program is directed toward lower risk domestic development and international projects. Key metrics for 2008 include targeted production of 860-920 million cubic feet equivalent per day and EBITDA of $1.7-1.9 billion. The outlook emphasizes high-quality assets, repeatable drilling programs, greater onshore weighting, value creation, and continued operational improvement to enable visible multi-year production growth
Bankers Life and Casualty Shares Company ProfileAlyssa Jennings
Bankers Life and Casualty Company is a subsidiary of CNO Financial Group, with over $4 billion in annual revenue. Bankers offers a variety of insurance products including Medicare Supplement insurance, long-term care insurance, life insurance, and annuities. In 2009, Bankers had $11.8 billion in assets under management, over 1.3 million policies in force, and $3 billion in collected premiums. Bankers focuses on outstanding customer service and has over 200 branch offices and 5,000 agents serving policyholders across the United States.
- The document summarizes Gafisa's third quarter 2009 results conference call.
- Key highlights include a 43% decrease in launches but a 48% increase in contracted sales compared to the previous year. Net revenues increased 131% while gross margins decreased.
- Recent developments discussed include strong sales in mid-to-mid-high segments, expansion of the affordable housing program, and plans to merge shares of Tenda into Gafisa to increase scale and efficiency.
- Gafisa has a diversified land bank of 313 sites in 21 states representing over 15 billion reais in potential sales.
Trusted Preferred Securities (TruPS) CDOs enable small banks and insurers to raise capital on a tax-advantaged basis. However, the financial crisis has significantly impaired TruPS CDOs. To evaluate a TruPS CDO, one should determine default rates for each underlying issuer, stress those rates, run cashflow modeling under scenarios, and discount tranche cashflows to determine impairment and fair value. This addresses the high level issues, risks, and evaluation approach for TruPS CDOs.
Citizen Air expanded rapidly through the 1980s, but this growth strained its finances. It financed expansion primarily through long-term debt, significantly increasing interest expenses without adequately growing operating income. As a result, it had negative interest and profit margins by 1985. It further struggled by purchasing Frontier Airlines, which did not align with its low-cost business model and drained funds. To improve its situation, Citizen Air needs to stop dividend payments, sell Frontier if possible, increase efficiency, address customer dissatisfaction, and downsize operations to stabilize its finances. However, its problems may be beyond the point of no return.
Maverick case final (balanced scorecard system)Makha U
The document discusses the structure and economics of the hotel industry, focusing on the relationships between franchisers, franchisees, and managers. It then provides details on Maverick Lodging's goals and strategies to achieve strong financial performance through a balanced scorecard system and bonus plan for hotel general managers. However, some drawbacks are identified with the initial balanced scorecard and bonus plan implementations regarding their complexity and lack of clarity.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
A bond is a tradable debt instrument that represents a loan made by an investor to an issuer. Bonds pay periodic interest payments and return the principal at maturity. Bonds offer safety, reliable income, potential for capital gains, and tax advantages compared to stocks. Adding bonds to a stock portfolio can lower risk through diversification while lowering expected returns. The value of a bond is determined by its coupon rate, face value, time to maturity, and required yield.
In Depth: Asset Backed Lending And Hedge FundsLisa Krow
Stillwater Capital Partners manages three hedge funds and a private equity real estate fund that have all achieved double-digit returns with low volatility. Their asset-backed lending fund makes short-term bridge loans secured by real estate, personal injury law firms, and life insurance policies. The loans allow borrowers to access cash quickly when traditional lenders take longer. Stillwater mitigates risk by ensuring adequate insurance on properties and getting two independent appraisals. They also secure law firm loans with expected future case settlements. The asset-backed fund of funds invests in managers pursuing similar lending strategies and verifies assets with an independent auditor.
This document provides an overview of yield curves and interest rate concepts. It defines key terms like spot rates, forward rates, and yield to maturity. It also discusses theories that aim to explain the shape of the yield curve, including expectations theory, liquidity preference theory, and market segmentation theory. While each theory provides some insights, the document concludes that the real shape of the yield curve at any point in time depends on expected inflation, liquidity preferences, and the supply and demand of funds in the market.
Tetuan Valley Startup School 6 w4 - Spring 2012Luis Rivera
This document provides an overview of a startup school program held in Tetuan Valley, Morocco in March 2012. It includes the schedule for the program's sessions on startup finance topics like key financial concepts, business models, and projections. Session materials cover financial indicators, business plan tools, and models for statements like balance sheets, cash flows, and profits and losses. The document aims to introduce technological entrepreneurs to essential financial knowledge for evaluating and pitching new businesses to investors.
This document provides an overview and summary of a financial conference held by Edison Electric Institute on November 8, 2005. It includes introductory remarks regarding forward-looking statements and safe harbor provisions. The document then summarizes Dick Kelly's presentation on EPS growth targets, dividend increases, and credit rating objectives for 2005-2009. It also provides highlights on rate case filings, capital expenditure forecasts, potential regulatory net income, and earnings guidance ranges.
- Genworth's U.S. mortgage insurance portfolio has a lower risk profile than industry peers based on factors such as lower concentrations of loans with FICO scores < 620, interest-only loans, and loans in California and Florida.
- Genworth's delinquency and default rates are lower than industry rates across vintages from 2004 to 2007, with the exception of some higher default rates in the 2007 policy year, which is still early.
- Within Genworth's portfolio, delinquency and default rates increase as FICO scores decrease, and are higher for adjustable rate mortgages, loans with loan-to-value ratios over 95%, and Alt-A loans.
This document is Danaher Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2006 on Form 10-Q. Some key details:
- Danaher reported net earnings of $215.7 million on sales of $2.14 billion for the quarter.
- Total assets increased to $9.35 billion as of March 31, 2006 from $9.16 billion as of December 31, 2005.
- Cash flows from operating activities for the quarter were $337.2 million.
- Genworth's U.S. mortgage insurance portfolio has a lower risk profile than industry peers based on factors like FICO scores, loan-to-value ratios, and product types.
- Default rates are increasing across all vintages and risk segments but remain below industry levels, with 2007 defaults lowest and 2005/2004 highest.
- Fixed rate loans and those with higher FICO scores are performing better than adjustable rate loans and those with lower FICO scores and higher LTV ratios.
- Management is navigating challenging market conditions through prudent risk and pricing actions while still achieving growth in premiums and maintaining a lower loss ratio than peers.
This document provides a summary of Sempra Energy's financial performance from 2000-2002. It discusses revenues, costs of sales, operating expenses, other income/expenses, taxes, and net income for the company and its subsidiaries. The California Utilities saw changes in natural gas and electric revenues and costs from 2000-2002 due to commodity price fluctuations. Sempra Energy Global Enterprises saw changes in revenues and costs from various subsidiaries like SET and SER over this period. Net income increased from 2000 to 2002 due to various factors including improved results at SER, lower interest expenses, and resolution of tax issues.
1) The document reports on the company's earnings results for the second quarter of 2007, with comparisons to results from the second quarter and first half of 2006.
2) Key metrics like revenues, earnings per share, operating margins and cash flow all increased between 5-21% compared to the prior year periods.
3) Segment results for Professional Instrumentation and Environmental are provided, with both segments reporting revenue growth between 11.5-14.5% and generally stable or slightly lower operating margins compared to 2006.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes Visteon's consolidated statement of operations and consolidated balance sheet for the first quarter of 2005. The statement of operations shows that Visteon had a net loss of $163 million for the quarter, compared to net income of $21 million in the prior year quarter. Sales were relatively flat at $4,987 million for the quarter. The balance sheet lists Visteon's assets and liabilities as of March 31, 2005, including $809 million in cash and cash equivalents.
Baxter International's 2003 annual report discusses the company's focus on advancing healthcare globally through innovation. It highlights Baxter's market-leading products and technologies for treating conditions like hemophilia, kidney disease, and immune deficiencies. The report also discusses Baxter's plans to strengthen its core businesses, improve profitability, and achieve more predictable performance following challenges in 2003.
This document discusses several approaches to discounting future losses, including income losses and life care costs, to present value. It notes that the discount rate should be based on risk-free investments according to Jones & Laughlin v. Pfeifer. However, it argues that using long-term treasury yields to discount losses may violate this principle by exposing plaintiffs to inflation risk not inherent in the losses. Short-term rates that match the inflation risk of losses are preferable. The document also discusses duration matching between plaintiff assets and liabilities.
This document provides an investor update on U.S. mortgage insurance from Genworth Financial. It includes definitions and discussions of key metrics like delinquency rates, claims frequency, historical industry experience, exposure and severity, and the role of lender captive reinsurance in providing downside protection. Examples are given of how factors like loan balances, coverage levels, home prices and regions can impact metrics like claims payments and severity.
This document discusses risk and return in the context of sound investing. It shows that while large cap stocks achieved the highest returns from 1982-2002, they also carried the highest risk as measured by standard deviation. A targeted blend of different asset classes can capture higher risk-adjusted returns by landing on the efficient frontier of the risk-return graph. The basics of asset allocation involve dividing investments among stocks, bonds, and cash, with more sophisticated strategies incorporating different subclasses within each class. Rebalancing ensures your asset allocation stays in line with your goals and risk tolerance over time.
Credit Suisse held a financial services forum on February 4, 2009 to discuss Sallie Mae's business fundamentals, financial outlook, and liquidity position. Key points included:
1) Sallie Mae has a strong franchise in student lending with competitive scale and assured FFELP profitability through 2010.
2) Liquidity is improving through various government funding programs and expanding deposit funding.
3) The outlook forecasts $5-6 billion in new private loan originations, $21-23 billion in FFELP loans, earnings per share of $1.45-$1.65, and continued management of credit quality and provision expenses.
capital one Lehman Conference Presentationfinance13
Capital One provides a presentation on its financial performance and positioning. It discusses (1) executing on its vision of national lending and local banking, (2) delivering an operating profit of $463M despite significant credit headwinds, and (3) decisions that position it to navigate cyclical challenges and deliver value over the cycle through resilient businesses, conservative risk management, and lower lending lines.
The document provides an overview of BI&P's 3rd quarter 2012 results. Key highlights include:
- Expanded credit portfolio grew 6.5% quarter-over-quarter to R$3 billion, with higher quality loans.
- Non-performing loans declined and coverage ratios increased.
- Revenue from services grew 40% year-over-year.
- Net profit increased 29% over the previous quarter to R$3.1 million.
- The bank continues improving portfolio quality while expanding in targeted industry niches.
Trusted Preferred Securities (TruPS) CDOs enable small banks and insurers to raise capital on a tax-advantaged basis. However, the financial crisis has significantly impaired TruPS CDOs. To evaluate a TruPS CDO, one should determine default rates for each underlying issuer, stress those rates, run cashflow modeling under scenarios, and discount tranche cashflows to determine impairment and fair value. This addresses the high level issues, risks, and evaluation approach for TruPS CDOs.
Citizen Air expanded rapidly through the 1980s, but this growth strained its finances. It financed expansion primarily through long-term debt, significantly increasing interest expenses without adequately growing operating income. As a result, it had negative interest and profit margins by 1985. It further struggled by purchasing Frontier Airlines, which did not align with its low-cost business model and drained funds. To improve its situation, Citizen Air needs to stop dividend payments, sell Frontier if possible, increase efficiency, address customer dissatisfaction, and downsize operations to stabilize its finances. However, its problems may be beyond the point of no return.
Maverick case final (balanced scorecard system)Makha U
The document discusses the structure and economics of the hotel industry, focusing on the relationships between franchisers, franchisees, and managers. It then provides details on Maverick Lodging's goals and strategies to achieve strong financial performance through a balanced scorecard system and bonus plan for hotel general managers. However, some drawbacks are identified with the initial balanced scorecard and bonus plan implementations regarding their complexity and lack of clarity.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
A bond is a tradable debt instrument that represents a loan made by an investor to an issuer. Bonds pay periodic interest payments and return the principal at maturity. Bonds offer safety, reliable income, potential for capital gains, and tax advantages compared to stocks. Adding bonds to a stock portfolio can lower risk through diversification while lowering expected returns. The value of a bond is determined by its coupon rate, face value, time to maturity, and required yield.
In Depth: Asset Backed Lending And Hedge FundsLisa Krow
Stillwater Capital Partners manages three hedge funds and a private equity real estate fund that have all achieved double-digit returns with low volatility. Their asset-backed lending fund makes short-term bridge loans secured by real estate, personal injury law firms, and life insurance policies. The loans allow borrowers to access cash quickly when traditional lenders take longer. Stillwater mitigates risk by ensuring adequate insurance on properties and getting two independent appraisals. They also secure law firm loans with expected future case settlements. The asset-backed fund of funds invests in managers pursuing similar lending strategies and verifies assets with an independent auditor.
This document provides an overview of yield curves and interest rate concepts. It defines key terms like spot rates, forward rates, and yield to maturity. It also discusses theories that aim to explain the shape of the yield curve, including expectations theory, liquidity preference theory, and market segmentation theory. While each theory provides some insights, the document concludes that the real shape of the yield curve at any point in time depends on expected inflation, liquidity preferences, and the supply and demand of funds in the market.
Tetuan Valley Startup School 6 w4 - Spring 2012Luis Rivera
This document provides an overview of a startup school program held in Tetuan Valley, Morocco in March 2012. It includes the schedule for the program's sessions on startup finance topics like key financial concepts, business models, and projections. Session materials cover financial indicators, business plan tools, and models for statements like balance sheets, cash flows, and profits and losses. The document aims to introduce technological entrepreneurs to essential financial knowledge for evaluating and pitching new businesses to investors.
This document provides an overview and summary of a financial conference held by Edison Electric Institute on November 8, 2005. It includes introductory remarks regarding forward-looking statements and safe harbor provisions. The document then summarizes Dick Kelly's presentation on EPS growth targets, dividend increases, and credit rating objectives for 2005-2009. It also provides highlights on rate case filings, capital expenditure forecasts, potential regulatory net income, and earnings guidance ranges.
- Genworth's U.S. mortgage insurance portfolio has a lower risk profile than industry peers based on factors such as lower concentrations of loans with FICO scores < 620, interest-only loans, and loans in California and Florida.
- Genworth's delinquency and default rates are lower than industry rates across vintages from 2004 to 2007, with the exception of some higher default rates in the 2007 policy year, which is still early.
- Within Genworth's portfolio, delinquency and default rates increase as FICO scores decrease, and are higher for adjustable rate mortgages, loans with loan-to-value ratios over 95%, and Alt-A loans.
This document is Danaher Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2006 on Form 10-Q. Some key details:
- Danaher reported net earnings of $215.7 million on sales of $2.14 billion for the quarter.
- Total assets increased to $9.35 billion as of March 31, 2006 from $9.16 billion as of December 31, 2005.
- Cash flows from operating activities for the quarter were $337.2 million.
- Genworth's U.S. mortgage insurance portfolio has a lower risk profile than industry peers based on factors like FICO scores, loan-to-value ratios, and product types.
- Default rates are increasing across all vintages and risk segments but remain below industry levels, with 2007 defaults lowest and 2005/2004 highest.
- Fixed rate loans and those with higher FICO scores are performing better than adjustable rate loans and those with lower FICO scores and higher LTV ratios.
- Management is navigating challenging market conditions through prudent risk and pricing actions while still achieving growth in premiums and maintaining a lower loss ratio than peers.
This document provides a summary of Sempra Energy's financial performance from 2000-2002. It discusses revenues, costs of sales, operating expenses, other income/expenses, taxes, and net income for the company and its subsidiaries. The California Utilities saw changes in natural gas and electric revenues and costs from 2000-2002 due to commodity price fluctuations. Sempra Energy Global Enterprises saw changes in revenues and costs from various subsidiaries like SET and SER over this period. Net income increased from 2000 to 2002 due to various factors including improved results at SER, lower interest expenses, and resolution of tax issues.
1) The document reports on the company's earnings results for the second quarter of 2007, with comparisons to results from the second quarter and first half of 2006.
2) Key metrics like revenues, earnings per share, operating margins and cash flow all increased between 5-21% compared to the prior year periods.
3) Segment results for Professional Instrumentation and Environmental are provided, with both segments reporting revenue growth between 11.5-14.5% and generally stable or slightly lower operating margins compared to 2006.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes Visteon's consolidated statement of operations and consolidated balance sheet for the first quarter of 2005. The statement of operations shows that Visteon had a net loss of $163 million for the quarter, compared to net income of $21 million in the prior year quarter. Sales were relatively flat at $4,987 million for the quarter. The balance sheet lists Visteon's assets and liabilities as of March 31, 2005, including $809 million in cash and cash equivalents.
Baxter International's 2003 annual report discusses the company's focus on advancing healthcare globally through innovation. It highlights Baxter's market-leading products and technologies for treating conditions like hemophilia, kidney disease, and immune deficiencies. The report also discusses Baxter's plans to strengthen its core businesses, improve profitability, and achieve more predictable performance following challenges in 2003.
This document discusses several approaches to discounting future losses, including income losses and life care costs, to present value. It notes that the discount rate should be based on risk-free investments according to Jones & Laughlin v. Pfeifer. However, it argues that using long-term treasury yields to discount losses may violate this principle by exposing plaintiffs to inflation risk not inherent in the losses. Short-term rates that match the inflation risk of losses are preferable. The document also discusses duration matching between plaintiff assets and liabilities.
This document provides an investor update on U.S. mortgage insurance from Genworth Financial. It includes definitions and discussions of key metrics like delinquency rates, claims frequency, historical industry experience, exposure and severity, and the role of lender captive reinsurance in providing downside protection. Examples are given of how factors like loan balances, coverage levels, home prices and regions can impact metrics like claims payments and severity.
This document discusses risk and return in the context of sound investing. It shows that while large cap stocks achieved the highest returns from 1982-2002, they also carried the highest risk as measured by standard deviation. A targeted blend of different asset classes can capture higher risk-adjusted returns by landing on the efficient frontier of the risk-return graph. The basics of asset allocation involve dividing investments among stocks, bonds, and cash, with more sophisticated strategies incorporating different subclasses within each class. Rebalancing ensures your asset allocation stays in line with your goals and risk tolerance over time.
Credit Suisse held a financial services forum on February 4, 2009 to discuss Sallie Mae's business fundamentals, financial outlook, and liquidity position. Key points included:
1) Sallie Mae has a strong franchise in student lending with competitive scale and assured FFELP profitability through 2010.
2) Liquidity is improving through various government funding programs and expanding deposit funding.
3) The outlook forecasts $5-6 billion in new private loan originations, $21-23 billion in FFELP loans, earnings per share of $1.45-$1.65, and continued management of credit quality and provision expenses.
capital one Lehman Conference Presentationfinance13
Capital One provides a presentation on its financial performance and positioning. It discusses (1) executing on its vision of national lending and local banking, (2) delivering an operating profit of $463M despite significant credit headwinds, and (3) decisions that position it to navigate cyclical challenges and deliver value over the cycle through resilient businesses, conservative risk management, and lower lending lines.
The document provides an overview of BI&P's 3rd quarter 2012 results. Key highlights include:
- Expanded credit portfolio grew 6.5% quarter-over-quarter to R$3 billion, with higher quality loans.
- Non-performing loans declined and coverage ratios increased.
- Revenue from services grew 40% year-over-year.
- Net profit increased 29% over the previous quarter to R$3.1 million.
- The bank continues improving portfolio quality while expanding in targeted industry niches.
The North Carolina Institute of Minority Economic Development (NCIMED) is a nonprofit organization that works to build economic opportunities for underserved populations through research, education, and business development. The document discusses the economic impact of housing issues on underserved communities, including rising unemployment and foreclosures. It analyzes factors driving budget deficits and presents data on projected foreclosures among African Americans and Latinos. The document concludes with recommendations to provide capital to small businesses and develop regional lending pools to strengthen minority economics.
1) The document discusses Bank of America's enterprise risk management strategies and capabilities. It highlights how the bank manages various types of risk, including credit, market, and operational risk across its consumer and commercial businesses.
2) Key strengths that help the bank manage risk include its breadth of client access, industry insights, and integrated risk management structure.
3) The bank has improved its risk profile by rebalancing its commercial credit portfolio and enhancing risk monitoring tools.
GMAC Executive Vice President and Chief Financial Officer Sanjiv Khattri.finance8
The document discusses forward-looking statements and risk factors that could cause actual results to differ from expectations. It notes that statements with words like "expect" and "anticipate" are intended to identify forward-looking statements that are subject to important risk factors described in SEC filings. The summary also notes that GMAC management cannot guarantee the accuracy of its forward-looking statements.
The document provides an overview of key concepts related to fixed income investments, including:
1) It describes the basic structure of a bond, including the issuer, maturity date, coupon payments, principal, and par value.
2) It explains bond ratings and the different rating scales used by agencies like CRISIL and ICRA to classify bonds based on their credit risk.
3) It covers yield calculations including yield to maturity and the concept of current yield, as well as factors that influence the yield curve and term structure.
4) It outlines various types of risk associated with fixed income investments like credit risk, interest rate risk, reinvestment risk, liquidity risk, and how these risks
Euler Hermes ACI is the largest credit insurance provider globally with over 114 years of experience. They insure over 57,000 policyholders worldwide against risks such as bankruptcy and default. Bankruptcies are predicted to increase sharply in 2009, demonstrating the need for credit insurance. Credit insurance protects against unexpected bad debt losses, frees up working capital, and allows companies to expand sales into riskier markets or with key accounts.
Nsl Product Guide Fixed Rate Interest Onlywindiee Green
This document describes North Star Lending's fixed rate interest-only mortgage product. It offers 30 and 40 year fixed rate mortgages with an interest-only payment period for the first 10 years, then fully amortizing for the remaining term. It provides loan-to-value limits, qualifying criteria, eligible property types, occupancy types, and underwriting guidelines for the product.
The document discusses the financial meltdown of 2008 and its causes. It provides context on the rise of securitized mortgage lending from the 1930s-2007. A key development was the increasing use of mortgage-backed securities from the 1980s onward. It then outlines the timeline of major events from 2008, including the collapse of investment banks like Lehman Brothers and bailouts of companies like AIG. The complex financial instruments like CDOs and their role in inflating the housing bubble that eventually burst are also examined.
This document provides an overview of BI&P's 4th quarter results presentation. It highlights that BI&P's expanded credit portfolio grew 2.6% quarter-over-quarter and 21% year-over-year to R$3.1 billion. The corporate segment represented 59.3% of the portfolio. Credit quality improved with 79.1% of the portfolio rated AA-B. Net profit was R$3.6 million in 4Q12, up 15.8% year-over-year. BI&P continued developing new product offerings and niche expertise in areas like agricultural bonds and corporate ecosystem services.
This document discusses continuity planning challenges for supermarkets with legacy systems from acquisitions. It notes that successful acquisitions have spread operations across brands and countries with limited management attention to continuity. Efforts to identify continuity risks for each process grind to a halt after mapping a few. The legacy of acquisitions makes guaranteeing service levels difficult due to a patchwork of legacy IT systems. Supermarkets need to value continuity and propose a blueprint to rationalize legacy systems to make service level guarantees cost-effective.
2009 Economic Outlook For The Global Food And Beverage Market Apr09stevelmy
The document provides an overview of the 2009 economic outlook for the global food and beverage market. It discusses how the financial crisis impacted commodity prices and consumer demand, putting pressure on industry supply chains and margins. While the US food industry was relatively resilient, the downturn slowed growth in emerging markets like Asia. The document recommends differentiating products, optimizing customer relationships, and understanding external factors as best practices. It also analyzes opportunities and threats in China's food and beverage industry, such as partnerships with multinationals and ongoing concerns over food safety.
This document summarizes a presentation on pricing guarantees for variable annuities given recent market conditions. It discusses how lower interest rates, lower expected equity returns, and higher realized volatility are challenging pricing assumptions. Many insurance companies have had to increase reserves, accelerate write-offs, and modify products with higher fees or reduced guarantees due to losses. Hedging guarantees is also very difficult in this environment of increased volatility, basis risk, and funding costs. Proper pricing now requires considering economics rather than just accounting impacts.
This document summarizes a presentation on pricing variable annuity guaranteed living benefits given in 2009. It discusses how recent market trends have impacted pricing, including large losses announced by insurers, increased reserves, and changes to VA product designs. It also examines factors affecting pricing, such as lower interest rates, higher volatility, increased hedging costs, and higher asset correlations. The presentation argues that pricing assumptions may need to be adjusted to account for these changes in the economic environment.
Williams reported lower earnings in the first quarter of 2009 compared to the previous year due to dramatically lower energy commodity prices. Adjusted EPS was $0.22, down 61% from $0.57 in the prior year. Average realized prices for U.S. production were 36% lower. Williams is focusing on maintaining a strong balance sheet, reducing costs, and bringing key infrastructure projects online in 2009-2010 to generate stable cash flows.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 1999. It provides information on EchoStar's business operations, legal proceedings, risks to its business, financial statements and other required disclosures. EchoStar operates a direct broadcast satellite subscription television service in the United States called DISH Network, which had approximately 3.4 million subscribers as of December 31, 1999. It also provides digital set-top boxes and other equipment to international direct-to-home service providers.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2000 filed with the Securities and Exchange Commission. It summarizes EchoStar's business operations, including its DISH Network direct broadcast satellite television service, technologies division, and satellite services business unit. It provides an overview of the components and technology behind EchoStar's DISH Network service, including its programming offerings, equipment requirements, and conditional access system for encryption/security. Financial data and other required disclosures are also included as required by the SEC.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2001 filed with the SEC. It provides an overview of EchoStar's businesses, including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment sales. It summarizes EchoStar's proposed merger with Hughes Electronics Corporation, which is subject to various regulatory approvals and conditions, including IRS and shareholder approval. If completed, the merger would create a new public company providing satellite TV services and technologies globally.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2002 filed with the SEC. It provides an overview of EchoStar's business including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment manufacturing business. It discusses EchoStar's programming packages, sales and marketing strategies, satellite fleet, technology, competition, regulation, legal proceedings, and financial results.
EchoStar Communications Corporation experienced significant growth in 2003, crossing the 9 million subscriber milestone for its DISH Network satellite television service. The company launched its ninth satellite and released several new receiver products, including those supporting high-definition television and digital video recording. Financially, EchoStar achieved $5.7 billion in revenue and $225 million in earnings, while reducing debt through bond issuances and retirements. Going forward, the company plans to continue expanding its offerings in areas like international programming and high-definition television.
- DISH Network added 1.48 million subscribers in 2004, surpassing 10 million subscribers in June 2004 and finishing the year with 10.9 million subscribers.
- DISH Network generated $7.15 billion in revenue in 2004, with earnings of $215 million and $21 million in free cash flow.
- DISH Network continues to focus on growing its subscriber base and developing additional services, and expects to launch its 10th satellite in early 2006 to increase channel offerings and capacity.
- DISH Network celebrated its 10th anniversary in 2005 and reported over $8.4 billion in revenue for the year, serving over 12 million customers.
- The company increased its net subscriber base by over 1.1 million customers in 2005 and remains the clear leader in international programming.
- Looking forward, the company plans to leverage its position as an HD leader by offering local HD channels in up to 30 markets by the end of the year using its new EchoStar X satellite.
dish network 2007 Notice and Proxy Statementfinance24
- The document is a letter from the Chairman and CEO of EchoStar Communications Corporation inviting shareholders to attend EchoStar's 2007 Annual Meeting of Shareholders on May 8, 2007.
- It provides details on the location, time, and agenda items to be voted on at the meeting, including the election of 10 directors and the ratification of the appointment of KPMG LLP as the independent auditor.
- Shareholders are encouraged to vote by proxy whether attending the meeting or not to ensure their votes are counted, and they are thanked for their support and interest in EchoStar.
Danaher Corporation reported quarterly and annual sales and operating margin data for its Tools and Controls segments for an unaudited period. The Tools segment saw annual sales of $1.16 billion while the Controls segment generated $2.62 billion in annual sales. On an annual basis before restructuring, operating margins were 13.49% for Tools and 16.54% for Controls. After restructuring, the annual operating margin fell to 11.31% for Tools and 14.85% for Controls.
Danaher Corporation reported its fourth quarter and full year 2001 results. For the fourth quarter, net earnings excluding restructuring charges were $76.6 million compared to $87.8 million in 2000. Full year 2001 net earnings excluding restructuring charges were $341.2 million, a 5% increase over 2000. However, Danaher recorded a $69.7 million restructuring charge in the fourth quarter related to manufacturing facility consolidations. For the full year, net earnings including restructuring charges were $297.7 million. Despite difficult economic conditions, Danaher was able to grow earnings in 2001 through aggressive cost reductions and restructuring actions.
Danaher Corporation announced its third quarter 2001 results, reporting a 5% increase in net income to $87.7 million compared to $83.6 million in third quarter 2000. Third quarter sales were down 8.6% to $901.6 million due to weakness in the industrial economy. For the first nine months of 2001, net earnings increased 12% to $264.6 million on 4% higher sales of $2.86 billion compared to the same period in 2000. The CEO stated that aggressive cost control allowed for earnings growth despite softness in the economy and that Danaher will maintain a strict cost focus while economic conditions remain uncertain.
Danaher Corporation announced its second quarter 2001 results, with record net earnings of $94.2 million, up 16% from the previous year. Revenue was also up 7% to $956.6 million. For the six month period, net earnings reached a record $176.8 million, up 16% and revenue was up 11.5% to $1.962 billion. While sales growth was strong, a slowing domestic economy negatively impacted some product lines, leading to a 4.5% decline in core sales volume. However, aggressive cost cutting measures helped boost earnings per share by 12.5% for the quarter.
Danaher Corporation announced record results for the first quarter of 2001 with net earnings of $82.6 million, a 15% increase over the same period in 2000. Diluted earnings per share were $0.56, up 14% from 2000. Sales increased 16% to $1,005.3 million due to acquisitions. While core volume declined in the tools and components segment due to a weak domestic economy, cost containment measures helped drive record operating profit. The company expects continued outperformance in 2001 despite economic uncertainty.
- Danaher Corporation reported record results for the fourth quarter and full year 2002, with net earnings of $161.7 million and $290.4 million respectively.
- Fourth quarter sales increased 39% to $1.275 billion compared to $918.9 million in 2001. Full year sales grew 21% to $4.577 billion.
- The strong results were driven by acquisitions and 3.5% core volume growth, although the tools and components segment declined slightly.
Danaher Corporation announced its third quarter 2002 results, reporting a 32% increase in net earnings to $116.0 million compared to third quarter 2001. Diluted earnings per share increased 25% year-over-year to $0.74. Total sales for the quarter grew 28% to $1,151.7 million, driven primarily by acquisitions completed in the first quarter of 2002. For the first nine months of 2002, net earnings were $128.7 million which included a $173.8 million one-time non-cash charge related to goodwill impairment. Excluding this charge, nine month net earnings were up 14% to $302.4 million compared to the same period in 2001.
Danaher Corporation announced its second quarter 2002 results, with net earnings of $103.7 million, a 10% increase over the second quarter of 2001. Earnings per share increased 5% to $0.66. Sales for the quarter increased 20% to $1.146 billion due primarily to recent acquisitions. For the first six months of 2002, net earnings were $12.7 million after a one-time $173.8 million goodwill impairment charge, but were up 5% excluding this charge at $186.4 million, with sales up 10% to $2.15 billion. The CEO stated they were pleased with the results and optimistic about continued improvement for the rest of the year.
Danaher Corporation announced its first quarter 2022 results. Net earnings were $82.7 million, comparable to the previous year's results. However, after adopting a new accounting standard that eliminated goodwill amortization, earnings per share fell 14% compared to the previous year. The company also recorded a $173.8 million charge related to goodwill impairment in some business units. Total sales were relatively flat at $1,004.2 million. The CEO commented that while core volumes declined 15% due to economic challenges, the company has seen signs of stability in revenues and gives a more positive outlook for the rest of the year.
Danaher Corporation provided a document summarizing its selling, general and administrative costs, operating profit, and free cash flow for the quarter and year ended December 31, 2003. Some key highlights include:
- Total company revenue for the quarter increased 16.7% to $1.49 billion compared to the same quarter last year.
- Operating profit before special credits for the total company was $239.6 million for the quarter, up 20.1% from the prior year.
- Free cash flow for the year was $781.2 million, up 21.1% from 2002.
Danaher Corporation reported record results for the fourth quarter and full year 2003. Net earnings for Q4 2003 were $169.9 million, or $1.06 per share, compared to $161.7 million, or $1.03 per share for Q4 2002. For the full year, net earnings were $536.8 million or $3.37 per share compared to $290.4 million or $1.88 per share for 2002. Sales increased 17% in Q4 2003 to $1.49 billion and grew 16% for the full year to $5.29 billion. The company experienced strong growth in both its process/environmental controls and tools/components segments.
This document from Danaher Corporation provides supplemental financial information including free cash flow and debt ratios for quarters ending in March, June, and September 2003 as well as year-to-date figures. Free cash flow is defined as operating cash flow minus capital expenditures and is a measure of available cash. Debt ratios including debt-to-total capital and net debt-to-total capital are also provided to show Danaher's leverage over time. Management believes these metrics provide useful information to investors and help determine borrowing capacity.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
2. Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” or
words of similar meaning and include, but are not limited to, statements regarding the outlook for
the company’s future business and financial performance. Forward-looking statements are based
on management’s current expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and
results may differ materially due to global political, economic, business, competitive, market,
regulatory and other factors, including those discussed in the Appendix and in the risk factors
section of the company’s Form 10-K filed with the SEC on February 28, 2007, Form 8-K filed with the
SEC on April 16, 2007 and Form 10-Q filed with the SEC on October 26, 2007. The company
undertakes no obligation to publicly update any forward-looking statement, whether as a result of
new information, future developments or otherwise.
For important information regarding the use of non-GAAP measures included in this presentation,
see our Third Quarter Financial Supplement which can be found on our website at
www.genworth.com.
October 31, 2007 1
3. Mortgage Insurance Loss Tutorial
Industry Lifetime Claim Frequency(4)
Loss Example
Number of Claims Per 100 Loans
Insurance In Force $100
Books
20
Seasoned
Books
Coverage %(1) 25% Through Oil
15 Seasoned Through
Patch
Southern California
Recession
10
Lifetime Claim Frequency
Expectation Per 100 Loans (2) 7% 5
0
Severity (3) 100% ‘80 ‘82 ‘84 ‘86 ‘88 ‘90 ‘92 ‘94 ‘96 ’98 ‘00 ‘02 ‘04
Book Year
Lifetime Losses $1.75 Industry Changes Since Late ’80s:
– Increased Prices
– Adopted FICO Credit Scores For Underwriting
– GSE’s Adopted Use of Automated Underwriting
– Growth of Higher Loan-To-Value Loans, Alt-A,
and Subprime Insured Products
Coverage Percent Based on 90% Loan-to-Value Example
(1)
Lifetime Claim Frequency Assumption Based on Number of Claims For Every 100 Loans Originated in a Book Year
(2)
(3) Severity Represents Actual Claim Amount Divided By Associated Risk in Force
(4) 2002-2004 Industry Book Years Lifetime Frequency Not Fully Developed
October 31, 2007 2
4. Risk Sharing Arrangements in the U.S.
61% Portfolio In Captive Arrangements*
- Mortgage Insurer Retains 1st Loss Position
- Lender “Captive” Takes 2nd Loss Position (“Excess of Loss”)
- Varies Based on Attachment Point for Losses
- Receives Premium (~25% - 40%)
- Mortgage Insurer Has Remaining Exposure
40% Cede Excess of Loss Example 25% Cede Excess of Loss Example
Premiums Losses Premiums Losses
Lender 25%
Remaining Remaining
Lender 40% GNW GNW
Losses Losses
2nd Loss 2nd Loss
Lender Lender
(4-14 Claims Layer) (5-10 Claims Layer)
60% 75%
GNW GNW
1st Loss (0-4 Claims Layer) 1st Loss (0-5 Claims Layer)
GNW GNW
* As of 9/30/07
October 31, 2007 3
5. Captive Reinsurance Tutorial
Captive Attachment Points Are Expressed In Dollars Based On Percentage of a
Book Year’s Original Risk in Force
Captive Reinsurance Is Written on a “Book Year” Basis By Individual Lender
Captive Reinsurance Premiums Are Deposited in Third Party Trust to Collateralize
Claims Obligations
• Genworth Is the Sole Beneficiary of the Trust
• Captive’s Liability Limited to Funds in Trust
Captives Are Cross-Collateralized
• All Funds in the Captive Trust Are Available to Pay Reinsurer Losses in Any Book Year
• Across Book Years By Lender …Existing and New Business
Captive Trust Capital Requirements
• Required to Maintain Greater of:
– 10 to 1 Risk to Capital Ratio, or
– Reinsurer’s Share of Contingency Reserve
• Capital Must Build to 5:1 Risk to Capital Before Reinsurer May Withdraw Capital From Trust
$840 Million In Captive Trusts As Of 9/30/07*
*Trust Fund Balance Subject to Future Additional Ceded Premium, Payment of Claims and Withdrawal of Dividends
October 31, 2007 4
6. Captive Reinsurance Tutorial
Captive Reinsurance Attachment Timing Varies By Lender, By Book Year
GAAP Benefit Starts When Incurred Losses Reach Attachment Point
– Incurred Losses = Paid Claims + Reserves for Delinquencies
Cash Benefit Starts When Claims Paid Reach Attachment Point
Conceptual Illustration*
Lender Book Year
A 2007
A 2006
Captive Losses
B 2007
B 2006
C 2007
C 2006
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
*Actual Results will Vary by Lender/Composition of Product Reinsured; Graphical Example Assumes Captive Attachment in 2009
October 31, 2007 5
7. Captive Reinsurance Example
Single Lender Scenario
One Book Year – Single Lender Captive
$100 Million Risk In Force Originated in 2006
40% Captive Reinsurance … 4% Attachment Point ($4 Million)
Ultimate Claims Rate of 8% and an Accelerated Loss Development Curve
GNW Revenue Captive
Benefits
GNW Incurred Losses
GNW Accrues Captive
($ in Thousands)
Benefit Based on
Incurred Losses Captive Pays
Cash For
Losses to GNW
Life
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Claims Paid 5 341 1,078 1,595 2,089 1,125 803 482 321 161 8,000
Change in Reserves 235 1,419 682 165 (1,049) (565) (403) (242) (161) (81) 0
Captive Benefit Accrued 0 0 0 (1,520) (1,040) (560) (400) (240) (160) (80) (4,000)
GNW Incurred Losses $240 $1,760 $1,760 $240 - - - - - - $4,000
October 31, 2007 6
8. Appendix
Cautionary note regarding forward-looking statements
This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of
similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Forward-
looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business,
competitive, market, regulatory and other factors and risks, including the following:
• Risks relating to our businesses, including interest rate fluctuations, downturns and volatility in equity and credit markets, defaults in portfolio
securities, downgrades in our financial strength and credit ratings, insufficiency of reserves, legal constraints on dividend distributions by
subsidiaries, competition, availability and adequacy of reinsurance, defaults by counterparties, regulatory restrictions on our operations and changes
in applicable laws and regulations, legal or regulatory investigations or actions, political or economic instability, the failure or any compromise of the
security of our computer systems, and the occurrence of natural or man-made disasters or a pandemic disease;
• Risks relating to our U.S. Mortgage Insurance segment, including the influence of Fannie Mae, Freddie Mac and a small number of large mortgage
lenders and investors, decreases in the volume of high loan-to-value mortgage originations or increases in mortgage insurance cancellations,
increases in the use of simultaneous second mortgages and other alternatives to private mortgage insurance and reductions by lenders in the level
of coverage they select, unexpected increases in mortgage insurance default rates or severity of defaults, deterioration in economic conditions or a
decline in home price appreciation, increases in the use of reinsurance with reinsurance companies affiliated with our mortgage lending customers,
increased competition with government-owned and government-sponsored entities offering mortgage insurance, changes in regulations, legal
actions under Real Estate Settlement Practices Act, and potential liabilities in connection with our U.S. contract underwriting services; and
• Other risks, including the possibility that in certain circumstances we will be obligated to make payments to GE under our tax matters agreement
even if our corresponding tax savings are never realized and payments could be accelerated in the event of certain changes in control, and
provisions of our certificate of incorporation and by-laws and our tax matters agreement with GE may discourage takeover attempts and business
combinations that stockholders might consider in their best interests.
We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
October 31, 2007 7