Le Lézard
Classified in: Business, Covid-19 virus
Subjects: ERN, DIV

Genworth MI Canada Inc. Reports Fourth Quarter 2020 Results Including Net Operating Income of $124 Million


Net Income:

$124 million

Up 15% Y/Y

Flat Q/Q

Net Operating Income:

$124 million

Up 10% Y/Y

Up 4% Q/Q

Fully Diluted Operating EPS:

$1.43

Up 10% Y/Y

Up 4% Q/Q





Transactional Premiums Written:

$335 million

Up 89% Y/Y

Up 15% Q/Q

Total Premiums Written:

$354 million

Up 94% Y/Y

Up 19% Q/Q

Premiums Earned:

$181 million

Up 6% Y/Y

Up 5% Q/Q

Loss Ratio:

10%

Down 10 pts Y/Y

Down 3 pts Q/Q

TORONTO, Feb. 4, 2021 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) today reported fourth quarter 2020 net income of $124 million, earnings per fully diluted common share of $1.44, net operating income of $124 million, operating earnings per fully diluted common share of $1.43 and an operating return on equity of 13%.

"We were very pleased with our fourth quarter and full year results, including strong top line momentum, a relatively low loss ratio and 13 percent operating return on equity," said Stuart Levings, President and CEO. "While the economic environment continues to evolve in line with our expectations, there remains a high degree of uncertainty, especially as we manage through the second wave of COVID-19. That said, the proactive government measures, improved employment levels and strength of the housing market should help us manage through this period even as the mortgage deferral program winds down. We would also like to thank our employees for their commitment and dedication during this challenging year."

Key Fourth Quarter 2020 Financial Results and Operational Metrics:

Dividends

The Company paid a quarterly dividend of $0.54 per common share on November 30th, 2020.

The Company also announced today that its Board of Directors had declared a dividend of $0.54 per common share, payable on March 3rd, 2021, to shareholders of record at the close of business on February 16th, 2021.

Shareholders' Equity

As at December 31st, 2020, shareholders' equity was $3.9 billion, representing a book value including accumulated other comprehensive income ("AOCI") of $44.68 per common share on a fully diluted basis. Excluding AOCI, shareholders' equity was $3.7 billion, representing a book value of $42.85 per common share on a fully diluted basis.

Detailed Operating Results and Financial Supplement

For more information on the Company's operating results, please refer to the Company's Management's Discussion and Analysis as posted on SEDAR and available at www.sedar.com.

This Press Release, as well as the Company's Fourth quarter 2020 consolidated Financial Statements, Management's Discussion and Analysis ("MD&A") and Financial Supplement are also posted on the Investor section of the Company's website, https://www.sagen.ca/about/investor-relations/. Investors are encouraged to review all of these materials.

About Genworth MI Canada Inc.

Genworth MI Canada Inc. (TSX: MIC) changed its brand from Genworth MI Canada to Sagen MI CanadaTM effective October 13th, 2020. The Company, operating through its subsidiary, Genworth Financial Mortgage Insurance Company Canada doing business as SagenTM, is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, Sagen has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31st, 2020, the Company had $7.5 billion total assets and $3.9 billion shareholders' equity. Find out more at www.sagen.ca.

Contact Information:

Investors ? Aaron Williams, 905-287-5504 [email protected]
Media ? Susan Carter, 905-287-5520  [email protected]

Consolidated Financial Highlights


($ millions, except per share amounts)

Three Months Ended

December 31st (unaudited),

Twelve Months Ended

December 31st (unaudited),

2020

2019

2020

2019

Transactional new insurance written1

$9,538

$5,065

$25,796

$19,347

Portfolio new insurance written1

3,222

1,332

19,226

6,062

Total new insurance written1

$12,761

$6,397

$45,022

$25,409

Premiums written

354

183

993

701

Premiums earned

181

171

697

679

Losses on claims

18

34

112

116

Expenses

38

35

140

136

Net underwriting income

$125

$102

$445

$427

Investment income (interest and dividends, net of expenses) 1

43

49

177

196

Interest rate hedging program income

4

7

19

29

Realized gains on sale of investments

2

1

18

18

Realized and unrealized losses on derivatives, foreign exchange

(1)

(6)

(44)

(69)

Total net investment income

$48

$50

$170

$174

Net income

$124

$108

$441

$426

Net operating income1

$124

$112

$461

$466

Basic weighted average common shares outstanding

86,327,438

86,176,993

86,292,061

86,682,766

Diluted weighted average common shares outstanding

86,352,250

86,177,587

86,628,229

86,697,013

Fully diluted earnings per common share

$1.44

$1.25

$5.05

$4.92

Fully diluted operating earnings per common share1

$1.43

$1.30

$5.33

$5.38

Fully diluted book value per common share, incl. AOCI1

$44.68

$44.58

$44.68

$44.58

Fully diluted book value per common share, excl. AOCI1

$42.85

$44.45

$42.85

$44.45

Loss ratio1

10%

20%

16%

17%

Combined ratio1

31%

41%

36%

37%

Operating return on equity1

13%

11%

13%

12%

MICAT ratio 1,3

187%

170%

187%

170%

Transactional delinquency ratio1, 2

0.25%

0.29%

0.25%

0.29%

Portfolio delinquency ratio1, 2

0.09%

0.10%

0.09%

0.10%

Delinquency ratio1, 2

0.18%

0.20%

0.18%

0.20%

Note: Amounts may not total due to rounding.

1 This is a financial measure not calculated based on International Financial Reporting Standards ("IFRS"). See the "Non-IFRS Financial Measures" section of this press release for additional information.

Based on outstanding balance and excludes delinquencies that have been incurred but not reported.

Company estimate at December 31st, 2020.

Non-IFRS Financial Measures

To supplement the Company's consolidated financial statements, which are prepared in accordance with IFRS, the Company uses certain non-IFRS financial measures to analyze performance. The Company's key performance indicators and certain other information included in this press release include non-IFRS financial measures. Such non-IFRS financial measures used by the Company to analyze performance include, among others, interest and dividend income, net of investment expenses, operating investment income, net operating income (excluding fee on early redemption of long-term debt), operating earnings per common share (basic) and operating earnings per common share (diluted). The Company believes that these non-IFRS financial measures provide meaningful supplemental information 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 operational decision making. Non-IFRS financial measures do not have standardized meanings and are unlikely to be comparable to any similar measures presented by other companies.

($ millions, unless otherwise specific)

Three Months Ended

December 31st (unaudited),

Twelve Months Ended

December 31st (unaudited),

2020

2019

2020

2019

Total investment income

$48

$50

$170

$174

Adjustment to investment income:





Net Losses from Investments, derivatives and foreign exchange1

(1)

6

26

51

Operating investment income

46

55

196

225

Realized expense (income) from the interest rate hedging program

(4)

(7)

(19)

(29)

Interest and dividend income, net of investment expenses

$43

$49

$177

$196

Net income

$124

$108

$441

$426

Adjustments to net income, net of taxes:





Fee on early redemption of long-term debt

-

-

1

2

Net Losses from Investments, derivatives and foreign exchange1

(1)

4

$19

37

Net operating income

$124

$112

$461

$466

Earnings per common share (basic) 2

$1.44

$1.25

$5.11

$4.92

Adjustments to earnings per common share, net of taxes:





Fee on early redemption of long-term debt

-

-

0.02

0.03

Net Losses from Investments, derivatives and foreign exchange1

(0.01)

0.05

0.22

0.43

Operating earnings per common share (basic) 2

$1.43

$1.30

$5.35

$5.38

Earnings per common share (diluted) 2 

$1.44

$1.25

$5.05

$4.92

Adjustments to earnings per common share, net of taxes:





Fee on early redemption of long-term debt

-

-

0.02

0.03

Share based compensation re-measurement amount

-

-

0.04

-

Net Losses from Investments, derivatives and foreign exchange1

(0.01)

0.05

0.22

0.43

Operating earnings per common share (diluted) 2

$1.43

$1.30

$5.33

$5.38

Note: Amounts may not total due to rounding.

1 Includes realized and unrealized gains and losses from derivatives and foreign exchange, excluding realized income and expense from the interest rate hedging program. 2 The difference between basic and diluted earnings per common share and basic and diluted operating earnings per common share  is caused by the potentially dilutive impact of share-based compensation awards.

Non-IFRS financial measures reconciled to comparable IFRS measures for such periods

Definitions of key non-IFRS financial measures and explanations of why these measures are useful to investors and management can be found in the Company's "Glossary", in the "Non-IFRS financial measures" section at the end of the Company's MD&A for the three and twelve months ended December 31st, 2020. The MD&A, along with the Company's most recent financial statements, are available on the Company's website and on SEDAR at www.sedar.com.

Caution regarding forward-looking information and statements

Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, effect of the government measures and programs in response to the COVID-19 pandemic, the Company's beliefs as to housing demand and home price appreciation, key macroeconomic factors and unemployment rates; the Company's future operating and financial results; the operating range for the Company's expense ratio; expectations regarding premiums written; and capital expenditure plans, dividend policy and the ability to execute on its future operating, investing and financial strategies.

The forward-looking statements contained herein are based on certain factors and assumptions, certain of which appear proximate to the applicable forward-looking statements contained herein. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Actual results or developments may differ materially from those contemplated by the forward-looking statements.

The Company's actual results and performance could differ materially from those anticipated in these forward-looking statements as a result of both known and unknown risks, including: the continued availability of the Canadian government's guarantee of private mortgage insurance on terms satisfactory to the Company; the Company's expectations regarding its revenues, expenses and operations; the potential impact of the COVID-19 pandemic on the Company's business and operations; the Company's plans to implement its strategy and operate its business; the Company's expectations regarding the compensation of directors and officers; the Company's anticipated cash needs and its estimates regarding its capital expenditures, capital requirements, reserves and its needs for additional financing; the Company's plans for and timing of expansion of service and products; the Company's ability to accurately assess and manage risks associated with the policies that are written; the Company's ability to accurately manage market, interest and credit risks; the Company's ability to maintain ratings, which may be affected by the ratings of its majority shareholder, Brookfield Business Partners L.P. ("Brookfield Business Partners"); interest rate fluctuations; a decrease in the volume of high loan-to-value mortgage originations; the cyclical nature of the mortgage insurance industry; changes in government regulations and laws mandating mortgage insurance; the acceptance by the Company's lenders of new technologies and products; the Company's ability to attract lenders and develop and maintain lender relationships; the Company's competitive position and its expectations regarding competition from other providers of mortgage insurance in Canada; anticipated trends and challenges in the Company's business and the markets in which it operates; changes in the global or Canadian economies; a decline in the Company's regulatory capital or an increase in its regulatory capital requirements; loss of members of the Company's senior management team; potential legal, tax and regulatory investigations and actions; the failure of the Company's computer systems or potential cyber threats; potential conflicts of interest between the Company and its majority shareholder, Brookfield Business Partners.

This is not an exhaustive list of the factors that may affect any of the Company's forward-looking statements. Some of these and other factors are discussed in more detail in the Company's Annual Information Form (the "AIF") dated March 11th, 2020. Investors and others should carefully consider these and other factors and not place undue reliance on the forward-looking statements. Further information regarding these and other risk factors is included in the Company's public filings with provincial and territorial securities regulatory authorities (including the Company's AIF) and can be found on SEDAR and available at www.sedar.com. The forward-looking statements contained in this news release represent the Company's views only as of the date hereof. Forward-looking statements contained in this news release are based on management's current plans, estimates, projections, beliefs and opinions and the assumptions related to these plans, estimates, projections, beliefs and opinions may change, and are presented for the purpose of assisting the Company's security holders in understanding management's current views regarding those future outcomes and may not be appropriate for other purposes. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

Sagen MI Canada and Sagen are trademarks owned by Genworth MI Canada Inc.  

SOURCE Genworth MI Canada


These press releases may also interest you

at 00:25
Shanghai Junshi Biosciences Co., Ltd ("Junshi Biosciences," HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies, announced its financial...

28 mar 2024
The "Global Clinical In Vitro Diagnostic Medical Laboratory Services Market: Strategy & Trends with Volume & Price Forecasts by Chemistry, Hematology, Microbiology, Pathology, Covid-19, and Molecular Dx by Country. Updated with Impact of COVID-19"...

28 mar 2024
Discovery Silver Corp. ("Discovery" or the "Company") today announced financial results for the three and twelve months ended December 31, 2023 ("Q4 2023" and "2023", respectively). The Company also provided a summary of key events since the...

28 mar 2024
The "Molecular Diagnostics at the Point of Care. By Application, Technology, Place, Product and by Country. With Executive Guides and Customization 2023 - 2027 " report has been added to  ResearchAndMarkets.com's offering. Infectious disease Dx is...

28 mar 2024
The "Whole Genome and Exome Sequencing Markets by Application, Organism and Product with Executive and Consultant Guides. Includes Direct to Consumer Analysis. 2023 to 2027" report has been added to  ResearchAndMarkets.com's offering. Will all...

28 mar 2024
Boat Rocker Media Inc. ("Boat Rocker" or the "Company") , an independent, integrated global entertainment company, today reported its financial results for the three months ended December 31, 2023 ("fourth quarter" or "Q4") and for the year ended...



News published on and distributed by: