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

1. Second
Quarter
2013
July
31,
2013
Genworth MI Canada Inc.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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: