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Genworth MI Canada Inc. Financial Supplement First Quarter 2015
Genworth MI Canada Inc.
Financial Supplement
First Quarter 2015
Table of Contents Page
Non-IFRS Measures 3
Selected Quarterly Financial Data 4
Selected Annual Financial Data 5
Insurance In-Force on Original Insured Amounts
By Product Type and Loan Amount 6
By Loan to Value and Province 7
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination 8
New Insurance Written
By Product Type 9
By Loan to Value and Province 10
Other
Selected Ratios and Losses on Claims Measures 11
Unearned Premium Reserves by Book Year 12
Outstanding Insured Mortgage Balances
By Product Type and Loan Amount 13
By Loan to Value and Province 14
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination 15
Glossary 16
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 2
To supplement the consolidated financial statements of Genworth MI Canada Inc. (the "Company"), which are prepared in accordance with
IFRS, the Company uses non-IFRS financial measures to analyze performance. Non-IFRS financial measures include net operating income,
interest and dividend income, net of investment expenses, operating earnings per common share (basic), operating earnings per common
share (diluted), shareholders’ equity excluding accumulated other comprehensive income (“AOCI”), operating return on equity and
underwriting ratios such as loss ratio, expense ratio and combined ratio. Non-IFRS measures used by the Company to analyze performance
include insurance in-force, new insurance written, Minimum Capital Test (“MCT”) ratio, delinquency rate, severity on claims paid,
investment yield, book value per common share (basic) including AOCI, book value per common share (basic) excluding AOCI, book value
per common share (diluted) including AOCI, book value per common share (diluted) excluding AOCI, and dividends paid per common
share. 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.
See the “Non-IFRS financial measures” section at the end of the MD&A for a reconciliation of net operating income to net income, total net
investment income to interest and dividend income, net of investment expenses, operating earnings per common share (basic) to earnings
per common share (basic), operating earnings per common share (diluted) to earnings per common share (diluted), and shareholders’
equity excluding AOCI to shareholders’ equity.
Definitions of key non-IFRS financial measures and explanations of why these measures are useful to investors and management can be
found in the "Glossary” at the end of this supplement.
Non-IFRS Measures
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 3
(amounts in millions of dollars, unless otherwise specified) 2015 2014 2014 2014 2014
Q1 Q4 Q3 Q2 Q1Income Statement DataNet premiums written $ 130 $ 178 $ 217 $ 160 $ 84
Underwriting revenues:Premiums earned $ 143 $ 143 $ 140 $ 141 $ 141
Losses on claims and expenses:Losses on claims $ 31 $ 37 $ 30 $ 17 $ 28 Sales, underwriting and administrative $ 24 $ 30 $ 24 $ 27 $ 27 Total losses on claims and expenses $ 56 $ 66 $ 53 $ 44 $ 55
Net underwriting income $ 87 $ 76 $ 87 $ 97 $ 86 Net investment income $ 57 $ 47 $ 51 $ 49 $ 49 Fee on early redemption of long-term debt $ - $ - $ - $ (7) $ - Interest expense $ (6) $ (6) $ (6) $ (7) $ (6) Income before taxes $ 138 $ 117 $ 133 $ 132 $ 130 Net income $ 107 $ 86 $ 98 $ 97 $ 95 Adjustment to net income, net of taxes:Fee on early redemption of long-term debt $ - $ - $ - $ 5 $ - Net investment gains $ (11) $ (3) $ (6) $ (4) $ (4)
Net operating income $ 97 $ 84 $ 93 $ 99 $ 91
Balance Sheet DataCash and investments $ 5,563 $ 5,443 $ 5,495 $ 5,337 $ 5,188Total assets $ 5,929 $ 5,770 $ 5,867 $ 5,650 $ 5,513Unearned premium reserves $ 1,786 $ 1,799 $ 1,763 $ 1,686 $ 1,667Long-term debt $ 432 $ 432 $ 432 $ 432 $ 423Total liabilities $ 2,527 $ 2,499 $ 2,545 $ 2,384 $ 2,327Shareholders' equity $ 3,402 $ 3,271 $ 3,322 $ 3,266 $ 3,187AOCI $ 244 $ 185 $ 164 $ 173 $ 161Shareholders' equity, excluding AOCI $ 3,158 $ 3,086 $ 3,158 $ 3,093 $ 3,027
Non-IFRS Key Ratios and Other MetricsLoss ratio 22% 26% 21% 12% 20%Expense ratio 17% 21% 17% 19% 19%Combined ratio 39% 47% 38% 31% 39%Effective tax rate 22.2% 26.3% 26.0% 26.0% 26.7%Operating return on equity ratio 12% 11% 12% 13% 12%MCT ratio 233% 225% 224% 230% 229%Number of delinquent loans 1,792 1,756 1,708 1,703 1,860
Delinquency rate (2) 0.11% 0.10% 0.10% 0.11% 0.12%Severity ratio 30% 29% 27% 29% 31%Book value per share (diluted,including AOCI) $ 36.07 $ 35.02 $ 34.57 $ 34.17 $ 33.52 Book value per share (diluted,excluding AOCI) $ 33.48 $ 33.04 $ 32.87 $ 32.36 $ 31.83 Operating earnings per common share (diluted) $ 1.03 $ 0.89 $ 0.95 $ 1.04 $ 0.96
Weighted average number of shares outstanding (Diluted) 93,614,487 94,284,878 95,572,195 95,220,039 94,983,507
Selected Quarterly Financial Data(1)
As Of or For The Quarters Ended
(1) Amounts may not total due to rounding.(2) Delinquency rates are based on original insured loans in-force for which coverage term has not expired.
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 4
(amounts in millions of dollars, unless otherwise specified) 2014 2013 2012 2011 2010
Income Statement DataGross premiums written $ 640 $ 512 $ 560 $ 545 $ 564 Net premiums written $ 640 $ 512 $ 550 $ 533 $ 552
Underwriting revenues:Premiums earned $ 565 $ 573 $ 589 $ 612 $ 621
Losses on claims and expenses:Losses on claims $ 111 $ 142 $ 194 $ 225 $ 206 Sales, underwriting and administrative expenses $ 107 $ 113 $ 105 $ 101 $ 103 Total losses on claims and expenses $ 219 $ 255 $ 298 $ 326 $ 309
Net underwriting income $ 346 $ 319 $ 291 $ 287 $ 312 Net investment income $ 195 $ 215 $ 367 (2) $ 179 $ 183 Interest expense $ (31) $ (23) $ (23) $ (23) $ (8) Income before taxes $ 511 $ 511 $ 635 $ 443 $ 486 Net income $ 377 $ 375 $ 470 (2) $ 323 $ 348 Adjustment to net income, net of taxes:Fee on early redemption of long-term debt $ 5 $ $ $ $Net investment gains $ (16) $ (26) $ (9) $ (5) $ (5)
Net operating income $ 366 $ 349 $ 462 (2) $ 318 $ 343
Balance Sheet DataCash and investments $ 5,443 $ 5,375 $ 5,379 $ 5,063 $ 5,135Total assets $ 5,770 $ 5,691 $ 5,734 $ 5,393 $ 5,398Unearned premium reserves $ 1,799 $ 1,724 $ 1,785 $ 1,824 $ 1,902Long-term debt $ 432 $ 423 $ 422 $ 422 $ 422Total liabilities $ 2,499 $ 2,604 $ 2,697 $ 2,710 $ 2,810Shareholders' equity $ 3,271 $ 3,087 $ 3,037 $ 2,683 $ 2,589AOCI $ 185 $ 124 $ 221 $ 215 $ 124Shareholders' equity, excluding AOCI $ 3,086 $ 2,963 $ 2,816 $ 2,468 $ 2,464
Non-IFRS Key Ratios and Other MetricsLoss ratio 20% 25% 33% 37% 33%Expense ratio 19% 20% 18% 17% 17%Combined ratio 39% 44% 51% 53% 50%Effective tax rate 26.3% 26.7% 25.9% 27.0% 28.5%Operating return on equity 12% 12% 17% (2) 13% 14%MCT ratio 225% 222% 170% 162% 156%Number of delinquent loans 1,756 1,830 2,153 2,752 3,401 Delinquency rate (3) 0.10% 0.12% 0.14% 0.20% 0.26%Severity ratio 29% 30% 32% 32% 27%Book value per share (diluted, including AOCI) $ 35.02 $ 32.53 $ 30.62 $ 26.94 $ 24.44Book value per share (diluted,excluding AOCI) 33.04 31.22 28.53 24.78 23.27Operating earnings per common share (diluted) $ 3.86 $ 3.60 $ 4.67 (2) $ 3.08 $ 3.02
Weighted average number of shares oustanding (diluted) 94,966,380 97,067,722 98,806,915 102,003,573 113,940,471
(1) Amounts may not total due to rounding.(2)
Excluding the impact of the government guarantee fund exit fee reversal of $166 million, related to 2011 and prior years, adjusted IFRS and non-IFRS financial measures for the year ended December 31, 2012 would have been: adjusted net investment
income $201 million, adjusted net income $348 million, adjusted net operating income $339 million, adjusted operating return on equity 13%, adjusted operating earnings per share (diluted) $3.43.(3) Delinquency rates are based on original insured loans in-force for which coverage term has not expired.
Selected Annual Financial Data(1)
As Of or For The Years Ended December 31,
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 5
By Product Type and Loan Amount
(amounts in billions of dollars, unless otherwise specified) 2015 2014 2014 2014 2014Q1 Q4 Q3 Q2 Q1
Total Insurance In-Force $ 366 $ 356 $ 348 $ 336 $ 323 Transactional insurance $ 274 $ 270 $ 264 $ 258 $ 253 Portfolio insurance $ 92 $ 86 $ 84 $ 78 $ 70
Total Insurance In-Force (Units) 1,704,483 1,673,505 1,646,223 1,602,928 1,549,650 Transactional insurance 1,266,626 1,255,050 1,236,206 1,213,846 1,197,083 Portfolio insurance 437,857 418,455 410,017 389,082 352,567
Total Insurance In-Force by Loan Amount (%)Over $550,000 6 6 6 5 5 $400,000 to $550,000 12 11 11 11 10 $250,000 to $400,000 33 33 33 32 32 $100,000 to $250,000 45 45 46 46 47 Less than $100,000 5 5 5 5 5 Total 100 100 100 100 100
Average loan size on insurance in-force
(in thousands of dollars) $ 215 $ 213 $ 212 $ 209 $ 208
(1) Amounts may not total due to rounding.(2) Insurance in-force represents the original insured amounts for which the coverage term has not expired.
Insurance In-Force On Original Insured Amounts (1) (2)
As Of or For The Quarters Ended
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 6
By Loan to Value and Province
2015 2014 2014 2014 2014Q1 Q4 Q3 Q2 Q1
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Total Insurance In-Force by Loan to Value (%) 95.01% and above 3 - 2 3 - 2 3 - 2 3 - 2 3 - 2 90.01% to 95.00% 46 - 35 46 - 35 46 - 35 45 - 35 45 - 35 85.01% to 90.00% 33 - 25 33 - 25 33 - 25 34 - 26 34 - 27 80.01% to 85.00% 11 - 8 11 - 8 11 - 8 11 - 9 11 - 9 75.01% to 80.00% 5 32 11 5 30 11 5 30 11 5 28 10 5 27 9 70.01% to 75.00% 1 16 5 1 17 5 1 17 5 1 17 5 1 18 5 65.01% to 70.00% - 10 3 - 10 3 - 10 3 1 10 3 - 10 3 60.01% to 65.00% - 11 3 - 11 3 - 11 3 - 11 3 - 11 3 55.01% to 60.00% - 7 2 - 7 2 - 7 2 - 8 2 - 8 2 50.01% to 55.00% - 5 1 - 6 1 - 6 1 - 6 1 - 6 1 50.00% and lower - 19 5 - 19 5 - 19 5 - 20 5 - 20 5 Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Total Insurance In-Force by Province (%)Ontario 44 53 46 44 53 46 44 53 46 45 52 46 45 52 46 British Columbia 13 19 14 13 19 14 13 19 14 13 19 14 13 20 14 Alberta 18 13 17 18 13 17 18 13 17 18 13 16 17 12 16 Quebec 15 9 14 15 9 14 15 9 14 15 10 14 15 9 14 Nova Scotia 2 1 2 2 1 2 2 1 2 2 1 2 2 1 2 Saskatchewan 3 2 3 3 2 3 3 2 3 3 2 2 3 2 2 Manitoba 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 New Brunswick 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Newfoundland 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Prince Edward Island - - - - - - - - - - - - - - - Territories - - - - - - - - - - - - - - - Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
(1) Amounts may not total due to rounding.(2) Insurance in-force represents the original insured amounts for which the coverage term has not expired. (3) Loan to value ratio is based on loan amount excluding the capitalized premium, where applicable.
Insurance In-Force On Original Insured Amounts (1) (2) (3)
As Of or For The Quarters Ended
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 7
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination
(amounts in millions, unless otherwise specified)
Total insured loans in-force 1,704,483 1,673,505 1,646,223 1,602,928 1,549,650 Total insured delinquent loans 1,792 1,756 1,708 1,703 1,860
Total insured loan delinquency rate (3)
0.11% 0.10% 0.10% 0.11% 0.12%
Transactional insurance loans in-force 1,266,626 1,255,050 1,236,206 1,213,846 1,197,083 Transactional insurance delinquent loans 1,532 1,493 1,477 1,493 1,634
Transactional loan delinquency rate (3) 0.12% 0.12% 0.12% 0.12% 0.14%
Portfolio insurance loans in-force 437,857 418,455 410,017 389,082 352,567 Portfolio insurance delinquent loans 260 263 231 210 226
Portfolio insurance loan delinquency rate (3) 0.06% 0.06% 0.06% 0.05% 0.06%
Province
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
Ontario 46 407 0.05 46 395 0.05 46 431 0.06 46 430 0.06 46 497 0.07 British Columbia 14 260 0.13 14 268 0.14 14 279 0.15 14 268 0.14 14 303 0.17 Alberta 17 220 0.09 17 222 0.10 17 207 0.09 16 221 0.10 16 249 0.12 Quebec 14 584 0.19 14 569 0.19 14 516 0.18 14 511 0.18 14 527 0.19 Nova Scotia 2 106 0.23 2 105 0.23 2 94 0.21 2 100 0.23 2 101 0.24 Saskatchewan 3 74 0.15 3 65 0.13 3 58 0.12 2 51 0.11 2 49 0.11 Manitoba 2 28 0.07 2 27 0.07 2 16 0.04 2 20 0.06 2 27 0.08 New Brunswick 1 73 0.22 1 64 0.20 1 71 0.22 1 66 0.21 1 73 0.24 New Foundland 1 27 0.10 1 25 0.10 1 20 0.08 1 23 0.09 1 20 0.08 Prince Edward Island - 10 0.18 - 13 0.24 - 14 0.26 - 9 0.18 - 12 0.24 Territories - 3 0.24 - 3 0.25 - 2 0.16 - 4 0.35 - 2 0.18 Total 100 1,792 0.11 100 1,756 0.10 100 1,708 0.10 100 1,703 0.11 100 1,860 0.12
Year of Policy Origination
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
% of
Insurance
In-force
Total
Delinquent
Loans
%
Delinquency
Rate (3)
2006 and Prior 30 184 0.03 31 193 0.03 31 190 0.03 33 219 0.03 34 267 0.04 2007 9 202 0.14 9 223 0.16 9 240 0.17 9 252 0.18 10 298 0.21 2008 7 236 0.22 7 224 0.21 7 222 0.21 8 237 0.22 8 273 0.25 2009 5 132 0.19 5 157 0.22 5 169 0.23 5 164 0.22 5 181 0.25 2010 7 251 0.23 8 250 0.23 8 271 0.25 8 280 0.26 9 282 0.26 2011 7 263 0.26 7 252 0.25 8 257 0.25 8 258 0.25 8 274 0.27 2012 10 283 0.19 11 284 0.19 11 249 0.16 12 218 0.14 12 224 0.14 2013 10 161 0.11 11 138 0.09 11 93 0.06 11 75 0.05 12 61 0.04 2014 12 80 0.05 12 35 0.02 10 17 0.01 6 - - 2 - - 2015 3 - - - - - - - - - - - - - - Total 100 1,792 0.11 100 1,756 0.10 100 1,708 0.10 100 1,703 0.11 100 1,860 0.12
Insurance In-Force On Original Insured Amounts (1) (2)
Q4
(1) Amounts may not add due to rounding.(2) Insurance in-force represents the original insured amounts for which the coverage term has not expired.(3) Delinquency rates are based on original insured loans in-force for which coverage term has not expired.
2015 2014 2014 2014
As Of or For The Quarters Ended
Q3Q1
2014
Q2 Q1
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 8
By Product Type
2015 2014 2014 2014 2014(amounts in millions of dollars, unless otherwise specified) Q1 Q4 Q3 Q2 Q1
New Insurance Written $ 9,787 $ 8,785 $ 13,391 $ 13,628 $ 6,348 Transactional insurance $ 3,909 $ 6,193 $ 7,354 $ 5,449 $ 3,117 Portfolio insurance $ 5,878 $ 2,593 $ 6,037 $ 8,180 $ 3,232
New Insurance Written (Units) 32,760 29,894 46,544 56,198 23,951 Transactional insurance 12,780 20,640 24,576 19,140 10,654 Portfolio insurance 19,980 9,254 21,968 37,058 13,297
Premiums written $ 130 $ 178 $ 217 $ 160 $ 84 Transactional insurance $ 104 $ 165 $ 191 $ 128 $ 71 Portfolio insurance $ 26 $ 13 $ 25 $ 32 $ 13 Reinsurance $ - $ 1 $ 1 $ 1 $ 1
New Insurance Written and Premiums Written (1)
(1) Amounts may not total due to rounding.
As Of or For The Quarters Ended
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 9
By Loan to Value and Province
2015 2014 2014 2014 2014Q1 Q4 Q3 Q2 Q1
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Total New Insurance Written by Loan to Value (%) (2)
95.01% and above - - - - - - - - - - - - - - - 90.01% to 95.00% 64 - 25 65 - 46 66 - 36 66 - 45 62 - 31 85.01% to 90.00% 24 - 9 23 - 16 23 - 13 23 - 16 24 - 12 80.01% to 85.00% 4 - 2 4 - 3 5 - 3 4 - 3 4 - 2 75.01% to 80.00% 6 55 35 5 53 19 4 52 26 5 57 21 6 35 21 70.01% to 75.00% 2 11 8 1 13 5 1 15 7 1 12 5 2 13 7 65.01% to 70.00% - 8 5 - 8 3 - 10 5 - 7 3 1 8 4 60.01% to 65.00% - 9 5 - 7 2 - 9 4 - 6 2 - 10 5 55.01% to 60.00% - 3 2 - 5 2 - 5 3 - 5 2 - 8 4 50.01% to 55.00% - 2 2 - 4 1 - 4 2 - 3 1 - 7 4 50.00% and lower - 11 6 - 11 3 - 5 2 - 9 3 - 19 10 Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Total New Insurance Written by Province (%)Ontario 37 56 49 37 56 43 39 60 48 34 58 41 38 63 51 British Columbia 13 16 15 12 15 13 12 12 12 12 15 13 11 14 13 Alberta 26 14 19 28 16 25 26 14 21 27 15 23 28 12 20 Quebec 11 7 8 10 9 9 10 7 9 15 7 12 11 6 8 Nova Scotia 2 1 2 2 - 2 2 1 2 2 1 2 2 1 1 Saskatchewan 5 2 3 5 1 4 5 2 4 4 2 4 5 2 3 Manitoba 2 2 2 3 1 2 3 2 2 2 1 2 3 1 2 New Brunswick 1 1 1 1 - 1 1 1 1 1 0 1 1 0 1 Newfoundland 2 1 1 2 - 2 2 1 2 2 1 2 2 0 1 Prince Edward Island - - - - - - - - - - - - - - - Territories - - - - - - - - - - - - - - - Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
(1) Amounts may not total due to rounding.(2) Loan to value ratio is based on loan amount excluding the capitalized premium, where applicable.
New Insurance Written (1)
As Of or For The Quarter Ended
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 10
(amounts in millions of dollars, unless otherwise specified) 2015 2014 2014 2014 2014Q1 Q4 Q3 Q2 Q1
Loss ratio (%) 22 26 21 12 20 Expense ratio (%) 17 21 17 19 19 Combined ratio (%) 39 47 38 31 39
Paid Claims Transactional insurance $ 26 $ 29 $ 25 $ 28 $ 28 Portfolio insurance $ 2 $ 1 $ 1 $ 0 $ 1 Total paid claims $ 28 $ 30 $ 26 $ 28 $ 29
Average paid claim (in thousands) $ 67.9 $ 60.2 $ 63.8 $ 63.5 $ 66.4 Average reserve per delinquent loan (in thousands) $ 66.2 $ 65.8 $ 63.4 $ 61.6 $ 62.4
Loss ReservesBeginning reserves $ 115 $ 108 $ 105 $ 116 $ 117 Paid claims $ (28) $ (30) $ (26) $ (28) $ (29) Increase in reserves $ 31 $ 37 $ 30 $ 17 $ 28 Ending reserves $ 119 $ 115 $ 108 $ 105 $ 116
Delinquency Roll (Units)Opening balance 1,756 1,708 1,703 1,860 1,830 New delinquent loans 1,160 1,147 1,102 1,053 1,248 Cures (728) (658) (690) (764) (779) Paid claims (396) (441) (407) (446) (439) Closing balance 1,792 1,756 1,708 1,703 1,860 Delinquency rate (2) 0.11% 0.10% 0.10% 0.11% 0.12%
Selected Metrics Related to Losses on Claims Measures (1)
As Of The Quarter Ended
(1) Amounts may not total due to rounding.(2) Delinquency rates are based on original insured loans in-force for which coverage term has not expired.
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 11
(amounts in millions of dollars, unless otherwise specified) 2015 2014 2014 2014 2014Policy Year Q1 Q4 Q3 Q2 Q12006 and Prior $ 36 $ 44 $ 48 $ 54 $ 61 2007 $ 50 $ 51 $ 56 $ 63 $ 71 2008 $ 64 $ 62 $ 69 $ 77 $ 86 2009 $ 53 $ 54 $ 60 $ 68 $ 77 2010 $ 115 $ 128 $ 144 $ 161 $ 182 2011 $ 165 $ 194 $ 216 $ 241 $ 267 2012 $ 252 $ 293 $ 322 $ 352 $ 382 2013 $ 345 $ 376 $ 404 $ 430 $ 456
2014 $ 576 $ 599 $ 443 $ 241 $ 85
2015 $ 130 $ - $ - $ - $ -
$ 1,786 $ 1,799 $ 1,763 $ 1,686 $ 1,667
(1) Amounts may not total due to rounding.
Unearned Premiums Reserves by Book Year (1)
As Of The Quarter Ended
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 12
By Product Type and Loan Amount
(amounts in billions of dollars, unless otherwise specified) 2015 2014 2014Q1 Q4 Q3
Outstanding Insured Mortgage Balances(1) (2)
As Of The Quarter Ended
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Outstanding Insured Mortgage Balances $ 169 $ 166 Transactional insurance $ 111 $ 111 Portfolio insurance $ 58 $ 55
Outstanding Insured Mortgage Balances (Units) 793,700 783,700 Transactional insurance 493,200 494,400 Portfolio insurance 300,500 289,300
Outstanding Insured Mortgage Balances by Loan Amount (%)Over $550,000 7 6 $400,000 to $550,000 13 13 $250,000 to $400,000 36 35 $100,000 to $250,000 39 40 Less than $100,000 5 5 Total 100 100
Average loan size on outstanding insured mortgage balances
(in thousands) $ 213 $ 212
(1) Amounts may not total due to rounding.(2) This is based on the amounts reported by lenders surveyed, which represents the vast majority of insurance in-force. Outstanding insured balances are reported on a one quarter lag.
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Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 13
By Loan to Value and Province
2015 2014 2014Q1 Q4 Q3
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Outstanding Insured Mortgage Balances (1) (2)
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As Of The Quarter Ended
Outstanding Insured Mortgage Balances by Effective Loan to Value (%) (3)
95.01% and above 6 - 4 5 - 3 90.01% to 95.00% 10 - 6 9 - 6 85.01% to 90.00% 11 - 7 12 - 7 80.01% to 85.00% 13 1 8 13 1 9 75.01% to 80.00% 13 7 11 13 7 11 70.01% to 75.00% 11 9 10 11 9 10 65.01% to 70.00% 8 9 9 8 9 9 60.01% to 65.00% 6 9 7 6 9 7 55.01% to 60.00% 4 8 6 4 8 6 50.01% to 55.00% 3 7 5 3 7 5 50.00% and lower 15 48 28 15 49 28 Total 100 100 100 100 100 100
Outstanding Insured Mortgage Balances by Province (%)Ontario 39 53 44 39 53 44 British Columbia 12 17 14 12 17 14 Alberta 23 13 20 23 13 19 Quebec 15 10 13 15 10 14 Nova Scotia 2 1 2 2 1 2 Saskatchewan 4 2 3 3 2 3 Manitoba 2 2 2 2 2 2 New Brunswick 1 1 1 1 1 1 Newfoundland 2 1 1 1 1 1 Prince Edward Island - - - - - - Territories - - - - - - Total 100 100 100 100 100 100
(1) Amounts may not total due to rounding.(2) This is based on the amounts reported by lenders surveyed, which represents the vast majority of insurance in-force. Outstanding insured balances are reported on a one quarter lag.(3)
Loan to value ratio is based on loan amount including capitalized premium, where applicable.
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Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 14
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination
Q1 Q4 Q3
Outstanding Insured Mortgage Balances (1) (2)
As Of The Quarter Ended
2015 2014 2014
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Total insured loans 793,700 783,700 Total insured delinquent loans 1,756 1,708
Total insured loan delinquency rate (3)
0.22% 0.22%
Transactional insurance - insured loans 493,200 494,400 Transactional insurance - delinquent loans 1,493 1,477
Transactional insurance loan delinquency rate (3)
0.30% 0.30%
Portfolio insurance - insured loans 300,500 289,300 Portfolio insurance - delinquent loans 263 231
Portfolio insurance loan delinquency rate (3) 0.09% 0.08%
Province
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
Ontario 44 395 0.11 44 431 0.12 British Columbia 14 268 0.30 14 279 0.32 Alberta 20 222 0.18 19 207 0.17 Quebec 13 569 0.42 14 516 0.37 Nova Scotia 2 105 0.48 2 94 0.44 Saskatchewan 3 65 0.26 3 58 0.24 Manitoba 2 27 0.17 2 16 0.10 New Brunswick 1 64 0.40 1 71 0.45 New Foundland 1 25 0.20 1 20 0.17 Prince Edward Island - 13 0.42 - 14 0.46 Territories - 3 0.48 - 2 0.32 Total 100 1,756 0.22 100 1,708 0.22
Year of Policy Origination
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
2006 and Prior 5 193 0.23 7 190 0.21 2007 5 223 0.49 5 240 0.51 2008 5 224 0.50 6 222 0.48 2009 4 157 0.48 4 169 0.47 2010 9 250 0.34 10 271 0.35 2011 11 252 0.32 11 257 0.32 2012 17 284 0.21 18 249 0.18 2013 19 138 0.10 20 93 0.07 2014 24 35 0.02 19 17 0.01 Total 100 1,756 0.22 100 1,708 0.22
(1) Amounts may not add due to rounding.(2) This is based on the amounts reported by lenders surveyed, which represents the vast majority of insurance in-force. Outstanding insured balances are reported on a one quarter lag.(3) Delinquency rates are based on outstanding insured mortgages as at the end of the quarter.
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Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 15
Glossary
“average reserve per delinquency” means the average reserve per delinquent loan calculated by total loss reserves in dollars divided by the number of
outstanding delinquent loans reported by lenders. Average reserve per delinquency measures the potential size of the average loss, including
delinquent loans with no expected loss, and is used for trending purposes and comparisons against internal targets.
“book value per common share” is a measure of the carrying value of each individual share of the Company and is a key metric used in assessing the
market value of the Company.
“book value per share including AOCI (basic)” means the per share amount of shareholders’ equity to the number of basic common shares
outstanding at a specified date.
“book value per share excluding AOCI (basic)” means the per share amount of shareholders’ equity excluding AOCI to the number of basic common
shares outstanding at a specified date.
“book value per share including AOCI (diluted)” means the per share amount of shareholders’ equity including AOCI to the number of diluted
common shares outstanding at a specified date. Diluted common shares outstanding takes into account all of the outstanding dilutive securities that
could potentially be exercised.
“book value per share excluding AOCI (diluted)” means the per share amount of shareholders’ equity excluding AOCI to the number of diluted
common shares outstanding at a specified date. Diluted common shares outstanding takes into account all of the outstanding dilutive securities that
could potentially be exercised.
“combined ratio” means the sum of the loss ratio and the expense ratio. The combined ratio measures the proportion of the Company’s total cost to
its premium earned and is used to assess the profitability of the Company’s insurance underwriting activities.
“credit score” means the lowest average credit score of all borrowers on a mortgage insurance application. Average credit scores are calculated by
averaging the score obtained from both Equifax and TransUnion for each borrower on the application. This is a key measure of household financial
health.
“debt-to-total capital ratio” means the ratio (expressed as a percentage) of debt to total capital (the sum of debt and equity). This is a measure of
financial leverage that the Company considers in capital management planning.
“delinquent loans” means loans reported by lenders where the borrowers have failed to make scheduled mortgage payments under the terms of the
mortgage and where the cumulative amount of mortgage payments missed exceeds the scheduled payments due in a three-month period.
“delinquency rate” means the ratio (expressed as a percentage) of the total number of delinquent loans to the total number of policies in-force at a
specified date. The delinquency ratio is an indicator of the emergence of losses on claims and the quality of the insurance portfolio and a useful for
comparison to industry benchmarks and internal targets.
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 16
“dividends paid per common share” means the portion of the Company’s profits distributed to shareholders during a specified period and is a
measure of the total amount distributed by the Company to shareholders.
“dividend payout ratio” means the ratio (expressed as a percentage) of the dollar amount of ordinary dividends paid during a specified period on net
income over the same period. This is measure of how much cash flow is being returned for each dollar invested in an equity position.
“expense ratio” means the ratio (expressed as a percentage) of sales, underwriting and administrative expenses to premiums earned for a specified
period. The expense ratio measures the operational efficiency of the Company’s and is a useful comparison to industry benchmarks and internal
targets.
“gross debt service ratio” means the percentage of borrowers’ total monthly debt servicing costs, in respect of the debt in question, as a percentage
of borrowers monthly gross income. This is a key measure of household financial health.
“insurance in-force” means the amount of all mortgage insurance policies in effect at a specified date. Insurance in-force measures the maximum
potential total risk exposure under insurance contracts at any given time and is used to assess potential losses on claims.
“interest and dividend income, net of investment expenses” means the total net investment income excluding investment gains (losses). This
measure is an indicator of the core operating performance of the investment portfolio.
“investment yield” means the net investment income before investment fees and excluding net investment gains (losses) tax affected for dividends
for a period divided by the average of the beginning and ending investments book value, for such period. For quarterly results, the investment yield is
the annualized net investment income using the average of beginning and ending investments book value, for such quarter.
“loss ratio” means the ratio (expressed as a percentage) of the total amount of losses on claims associated with insurance policies incurred during a
specified period to premiums earned during such period. The loss ratio is a key measure of underwriting profitability and the quality of the insurance
portfolio and is used for comparisons to industry benchmarks and internal targets.
“Minimum Capital Test” or “MCT” means the minimum capital test for certain federally regulated insurance companies established by OSFI (as defined
herein). Under MCT, companies calculate a MCT ratio of regulatory capital available to regulatory capital required using a defined methodology
prescribed by OSFI in monitoring the adequacy of a company’s capital. The MCT ratio is a key metric of the adequacy of the Company’s capital in
comparison to regulatory requirements and is used for comparisons to other mortgage insurers and internal targets.
“net operating income” means net income excluding after-tax net investment gains (losses) and after-tax fees on early redemption of debt. Net
operating income estimates the recurring after-tax earnings from core business activities and is a better indicator of core operating performance.
“new insurance written” means the original principal balance of mortgages, including any capitalized premiums, insured during a specified period.
New insurance written measures the maximum potential risk exposure under insurance contracts added during a specific time period and is used to
determine potential loss exposure.
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 17
“operating earnings per common share (basic)” means the net operating income divided by the basic average common shares outstanding at the end
of period.
“operating earnings per common share (diluted)” means the net operating income, excluding the impact of the share based compensation re-
measurement amount, divided by the diluted average common shares outstanding at the end of period. The Company believes that operating earnings
per share (diluted) is a better indicator of core operating performance.
“operating return on equity” means the net operating income for a period, excluding the impact of the share based compensation re-measurement
amount, divided by the average of the beginning and ending shareholders’ equity, excluding AOCI, for such period. For quarterly results, the operating
return is the annualized operating return on equity using the average of beginning and ending shareholders’ equity, excluding AOCI, for such quarter.
Operating return on equity is an indicator of return on equity from core business activities.
“portfolio insurance” means mortgage insurance covering an individual mortgage that is underwritten as part of a portfolio of mortgages that have a
loan-to-value ratio equal to or less than 80% at the time the loan is insured.
“severity on claims paid” means the ratio (expressed as a percentage) of the dollar amount of claims paid during a specified period on insured loans to
the original insured mortgage amount relating to such loans. The main determinants of the severity ratio are the loan-to-value (original balance of a
mortgage loan divided by the original value of the mortgaged property), age of the mortgage loan, the value of the underlying property, accrued
interest on the loan, expenses advanced by the insured and foreclosure expenses. Severity on claims paid ratio measures the size of the average loss
on a paid claim relative to the original insured mortgage amount and is used to assess the potential loss exposure related to insurance in force and for
comparison to industry benchmarks and internal targets.
“share based compensation re-measurement amount” means the impact of revaluation of stock option liability as required under IFRS due to the cash
settlement option. The Company believes that excluding this impact from operating earnings per share (diluted) is a better indicator of core operating
performance.
“transactional insurance” means mortgage insurance covering an individual mortgage that typically has been underwritten individually, and which is
predominantly a mortgage with a loan-to-value ratio of greater than 80% at the time the loan is originated.
“workout penetration” means the ratio (expressed as a percentage) of the number of total workouts approved, including shortfall sales, over total
workout opportunities. Total workout opportunities include all new delinquencies and re-delinquencies reported plus total workouts approved over
the same period. Workout penetration ratio measures the number of workouts performed relative to the number of existing workout opportunities
and is used to assess the success of the loss mitigation homeowner’s assistance program.
The Company’s full glossary is posted on the Company’s website at http://investor.genworthmicanada.ca and can be accessed by clicking on the link
under the Investor Resources heading on the bottom navigation bar.
Genworth MI Canada Inc. Financial Supplement - First Quarter 2015 Page 18
