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Genworth MI Canada Inc. Financial Supplement Second Quarter 2015
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Genworth MI Canada Inc.
Financial Supplement
Second 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
By Original and Remaining Amortization Period 16
Glossary 17
Genworth MI Canada Inc. Financial Supplement - Second 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 - Second Quarter 2015 Page 3
(amounts in millions of dollars, unless otherwise specified) 2015 2015 2014 2014 2014
Q2 Q1 Q4 Q3 Q2
Income Statement Data
Net premiums written $ 205 $ 130 $ 178 $ 217 $ 160
Underwriting revenues:
Premiums earned $ 144 $ 143 $ 143 $ 140 $ 141
Losses on claims and expenses:
Losses on claims $ 25 $ 31 $ 37 $ 30 $ 17
Sales, underwriting and administrative $ 29 $ 24 $ 30 $ 24 $ 27
Total losses on claims and expenses $ 54 $ 56 $ 66 $ 53 $ 44
Net underwriting income $ 90 $ 87 $ 76 $ 87 $ 97
Net investment income $ 58 $ 57 $ 47 $ 51 $ 49
Fee on early redemption of long-term debt $ - $ - $ - $ - $ (7)
Interest expense $ (6) $ (6) $ (6) $ (6) $ (7)
Income before taxes $ 143 $ 138 $ 117 $ 133 $ 132
Net income $ 103 $ 107 $ 86 $ 98 $ 97
Adjustment to net income, net of taxes:
Fee on early redemption of long-term debt $ - $ - $ - $ - $ 5
Net investment gains $ (12) $ (11) $ (3) $ (6) $ (4)
Net operating income $ 92 $ 97 $ 84 $ 93 $ 99
Balance Sheet Data
Total Investments $ 5,700 $ 5,563 $ 5,443 $ 5,495 $ 5,337
Total assets $ 6,167 $ 5,929 $ 5,770 $ 5,867 $ 5,650
Unearned premium reserves $ 1,847 $ 1,786 $ 1,799 $ 1,763 $ 1,686
Long-term debt $ 432 $ 432 $ 432 $ 432 $ 432
Total liabilities $ 2,807 $ 2,527 $ 2,499 $ 2,545 $ 2,384
Shareholders' equity $ 3,360 $ 3,402 $ 3,271 $ 3,322 $ 3,266
AOCI $ 182 $ 244 $ 185 $ 164 $ 173
Shareholders' equity, excluding AOCI $ 3,178 $ 3,158 $ 3,086 $ 3,158 $ 3,093
Non-IFRS Key Ratios and Other Metrics
Loss ratio 17% 22% 26% 21% 12%
Expense ratio 20% 17% 21% 17% 19%
Combined ratio 37% 39% 47% 38% 31%
Effective tax rate 27.7% 22.2% 26.3% 26.0% 26.0%
Operating return on equity ratio 12% 12% 11% 12% 13%
MCT ratio (2)
231% 233% 225% 224% 231%
Number of delinquent loans 1,666 1,792 1,756 1,708 1,703
Severity ratio 30% 30% 29% 27% 29%
Book value per share (diluted,including AOCI) $ 36.18 $ 36.07 $ 35.02 $ 34.57 $ 34.17
Book value per share (diluted,excluding AOCI) $ 34.23 $ 33.48 $ 33.04 $ 32.87 $ 32.36
Operating earnings per common share (diluted) $ 0.99 $ 1.03 $ 0.89 $ 0.95 $ 1.04
Weighted average number of shares outstanding (Diluted) 92,475,757 93,614,487 94,284,878 95,572,195 95,220,039
Selected Quarterly Financial Data(1)
As Of or For The Quarters Ended
(1) Amounts may not total due to rounding.
(2) Q2 2015 MCT ratio is a Company Estimate
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 4
(amounts in millions of dollars, unless otherwise specified) 2014 2013 2012 2011 2010
Income Statement Data
Gross 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 Data
Total Investments $ 5,443 $ 5,375 $ 5,379 $ 5,063 $ 5,135
Total assets $ 5,770 $ 5,691 $ 5,734 $ 5,393 $ 5,398
Unearned premium reserves $ 1,799 $ 1,724 $ 1,785 $ 1,824 $ 1,902
Long-term debt $ 432 $ 423 $ 422 $ 422 $ 422
Total liabilities $ 2,499 $ 2,604 $ 2,697 $ 2,710 $ 2,810
Shareholders' equity $ 3,271 $ 3,087 $ 3,037 $ 2,683 $ 2,589
AOCI $ 185 $ 124 $ 221 $ 215 $ 124
Shareholders' equity, excluding AOCI $ 3,086 $ 2,963 $ 2,816 $ 2,468 $ 2,464
Non-IFRS Key Ratios and Other Metrics
Loss 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
Severity ratio 29% 30% 32% 32% 27%
Book value per share (diluted, including AOCI) $ 35.02 $ 32.53 $ 30.62 $ 26.94 $ 24.44
Book value per share (diluted,excluding AOCI) 33.04 31.22 28.53 24.78 23.27
Operating 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.
Selected Annual Financial Data(1)
As Of or For The Years Ended December 31,
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 5
By Product Type and Loan Amount
(amounts in billions of dollars, unless otherwise specified) 2015 2015 2014 2014 2014
Q2 Q1 Q4 Q3 Q2
Total Insurance In-Force $ 376 $ 366 $ 356 $ 348 $ 336
Transactional insurance $ 280 $ 274 $ 270 $ 264 $ 258
Portfolio insurance $ 96 $ 92 $ 86 $ 84 $ 78
Total Insurance In-Force (In Thousands of Units) 1,737 1,704 1,674 1,646 1,603
Transactional insurance 1,288 1,267 1,255 1,236 1,214
Portfolio insurance 449 438 418 410 389
Total Insurance In-Force by Loan Amount (%)
Over $550,000 6 6 6 6 5
$400,000 to $550,000 12 12 11 11 11
$250,000 to $400,000 33 33 33 33 32
$100,000 to $250,000 44 45 45 46 46
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) $ 216 $ 215 $ 213 $ 212 $ 209
(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 - Second Quarter 2015 Page 6
By Loan to Value and Province
2015 2015 2014 2014 2014
Q2 Q1 Q4 Q3 Q2
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Original Loan to Value by Year of Policy Origination (%)
2009 and Prior 90 59 87 90 59 87 90 59 87 90 59 87 90 59 87
2010 91 61 84 91 61 84 91 61 84 91 61 84 91 61 84
2011 90 59 83 90 60 83 90 60 83 90 60 83 90 60 83
2012 90 59 74 90 59 74 90 59 74 90 58 73 90 58 73
2013 91 57 72 91 57 72 91 57 72 91 56 71 91 56 71
2014 92 59 74 92 59 74 92 59 73 91 61 73 91 58 70
2015 91 65 76 91 68 76 - - - - - - - - - Total 90 59 82 90 59 82 90 59 82 90 59 82 90 58 82
Total Insurance In-Force by Province (%)
Ontario 44 53 46 44 53 46 44 53 46 44 53 46 45 52 46
British Columbia 13 18 14 13 19 14 13 19 14 13 19 14 13 19 14
Alberta 18 13 17 18 13 17 18 13 17 18 13 17 18 13 16
Quebec 15 9 14 15 9 14 15 9 14 15 9 14 15 10 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 3 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
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% 47 - 35 46 - 35 46 - 35 46 - 35 45 - 35
85.01% to 90.00% 33 - 24 33 - 25 33 - 25 33 - 25 34 - 26
80.01% to 85.00% 11 - 8 11 - 8 11 - 8 11 - 8 11 - 9
75.01% to 80.00% 5 32 12 5 32 11 5 30 11 5 30 11 5 28 10
70.01% to 75.00% 1 16 5 1 16 5 1 17 5 1 17 5 1 17 5
65.01% to 70.00% - 10 3 - 10 3 - 10 3 - 10 3 1 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 - 7 2 - 8 2
50.01% to 55.00% - 6 1 - 5 1 - 6 1 - 6 1 - 6 1
50.00% and lower - 18 5 - 19 5 - 19 5 - 19 5 - 20 5 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 - Second Quarter 2015 Page 7
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination
Total insured loans in-force 1,737,083 1,704,483 1,673,505 1,646,223 1,602,928
Total insured delinquent loans 1,666 1,792 1,756 1,708 1,703
Total insured loan delinquency rate (3)
0.10% 0.11% 0.10% 0.10% 0.11%
Transactional insurance loans in-force 1,287,744 1,266,626 1,255,050 1,236,206 1,213,846
Transactional insurance delinquent loans 1,435 1,532 1,493 1,477 1,493
Transactional loan delinquency rate (3)
0.11% 0.12% 0.12% 0.12% 0.12%
Portfolio insurance loans in-force 449,339 437,857 418,455 410,017 389,082
Portfolio insurance delinquent loans 231 260 263 231 210
Portfolio insurance loan delinquency rate (3)
0.05% 0.06% 0.06% 0.06% 0.05%
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 46 344 0.04 46 407 0.05 46 395 0.05 46 431 0.06 46 430 0.06
British Columbia 14 226 0.11 14 260 0.13 14 268 0.14 14 279 0.15 14 268 0.14
Alberta 17 227 0.09 17 220 0.09 17 222 0.10 17 207 0.09 16 221 0.10
Quebec 14 579 0.19 14 584 0.19 14 569 0.19 14 516 0.18 14 511 0.18
Nova Scotia 2 92 0.20 2 106 0.23 2 105 0.23 2 94 0.21 2 100 0.23
Saskatchewan 3 68 0.13 3 74 0.15 3 65 0.13 3 58 0.12 2 51 0.11
Manitoba 2 29 0.07 2 28 0.07 2 27 0.07 2 16 0.04 2 20 0.06
New Brunswick 1 60 0.18 1 73 0.22 1 64 0.20 1 71 0.22 1 66 0.21
Newfoundland 1 29 0.11 1 27 0.10 1 25 0.10 1 20 0.08 1 23 0.09
Prince Edward Island - 10 0.18 - 10 0.18 - 13 0.24 - 14 0.26 - 9 0.18
Territories - 2 0.15 - 3 0.24 - 3 0.25 - 2 0.16 - 4 0.35 Total 100 1,666 0.10 100 1,792 0.11 100 1,756 0.10 100 1,708 0.10 100 1,703 0.11
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 29 158 0.02 30 184 0.03 31 193 0.03 31 190 0.03 33 219 0.03
2007 8 217 0.15 9 202 0.14 9 223 0.16 9 240 0.17 9 252 0.18
2008 7 208 0.20 7 236 0.22 7 224 0.21 7 222 0.21 8 237 0.22
2009 4 116 0.16 5 132 0.19 5 157 0.22 5 169 0.23 5 164 0.22
2010 7 209 0.20 7 251 0.23 8 250 0.23 8 271 0.25 8 280 0.26
2011 7 248 0.25 7 263 0.26 7 252 0.25 8 257 0.25 8 258 0.25
2012 10 283 0.19 10 283 0.19 11 284 0.19 11 249 0.16 12 218 0.14
2013 10 148 0.10 10 161 0.11 11 138 0.09 11 93 0.06 11 75 0.05
2014 12 79 0.05 12 80 0.05 12 35 0.02 10 17 0.01 6 - -
2015 6 - - 3 - - - - - - - - - - - Total 100 1,666 0.10 100 1,792 0.11 100 1,756 0.10 100 1,708 0.10 100 1,703 0.11
Q4Q2
2014
Q3 Q2
Insurance In-Force On Original Insured Amounts (1) (2)
Q1
(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 and exclude delinquencies that have been incurred but not reported.
2015 2015 2014 2014
As Of or For The Quarters Ended
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 8
By Product Type
2015 2015 2014 2014 2014
(amounts in millions of dollars, unless otherwise specified) Q2 Q1 Q4 Q3 Q2
New Insurance Written $ 10,862 $ 9,787 $ 8,785 $ 13,391 $ 13,628
Transactional insurance $ 6,761 $ 3,909 $ 6,193 $ 7,354 $ 5,449
Portfolio insurance $ 4,100 $ 5,878 $ 2,593 $ 6,037 $ 8,180
New Insurance Written (Units) 36,787 32,760 29,894 46,544 56,198
Transactional insurance 22,927 12,780 20,640 24,576 19,140
Portfolio insurance 13,860 19,980 9,254 21,968 37,058
Premiums written $ 205 $ 130 $ 178 $ 217 $ 160
Transactional insurance $ 183 $ 104 $ 165 $ 191 $ 128
Portfolio insurance $ 22 $ 26 $ 13 $ 25 $ 32
Reinsurance $ - $ - $ 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 - Second Quarter 2015 Page 9
By Loan to Value and Province
2015 2015 2014 2014 2014
Q2 Q1 Q4 Q3 Q2
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% 65 - 41 64 - 25 65 - 46 66 - 36 66 - 45
85.01% to 90.00% 23 - 14 24 - 9 23 - 16 23 - 13 23 - 16
80.01% to 85.00% 4 - 3 4 - 2 4 - 3 5 - 3 4 - 3
75.01% to 80.00% 5 52 23 6 55 35 5 53 19 4 52 26 5 57 21
70.01% to 75.00% 1 12 6 2 11 8 1 13 5 1 15 7 1 12 5
65.01% to 70.00% - 8 3 - 8 5 - 8 3 - 10 5 - 7 3
60.01% to 65.00% - 8 3 - 9 5 - 7 2 - 9 4 - 6 2
55.01% to 60.00% - 6 2 - 3 2 - 5 2 - 5 3 - 5 2
50.01% to 55.00% - 4 2 - 2 2 - 4 1 - 4 2 - 3 1
50.00% and lower - 10 4 - 11 6 - 11 3 - 5 2 - 9 3 Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Total New Insurance Written by Province (%)
Ontario 34 55 42 37 56 49 37 56 43 39 60 48 34 58 41
British Columbia 13 16 14 13 16 15 12 15 13 12 12 12 12 15 13
Alberta 23 16 20 26 14 19 28 16 25 26 14 21 27 15 23
Quebec 20 9 16 11 7 8 10 9 9 10 7 9 15 7 12
Nova Scotia 2 - 1 2 1 2 2 - 2 2 1 2 2 1 2
Saskatchewan 4 1 3 5 2 3 5 1 4 5 2 4 4 2 4
Manitoba 2 1 2 2 2 2 3 1 2 3 2 2 2 1 2
New Brunswick 1 - 1 1 1 1 1 - 1 1 1 1 1 0 1
Newfoundland 2 1 1 2 1 1 2 - 2 2 1 2 2 1 2
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 - Second Quarter 2015 Page 10
(amounts in millions of dollars, unless otherwise specified) 2015 2015 2014 2014 2014
Q2 Q1 Q4 Q3 Q2
Loss ratio (%) 17 22 26 21 12
Expense ratio (%) 20 17 21 17 19
Combined ratio (%) 37 39 47 38 31
Paid Claims
Transactional insurance $ 26 $ 26 $ 29 $ 25 $ 28
Portfolio insurance $ 1 $ 2 $ 1 $ 1 $ 0
Total paid claims $ 27 $ 28 $ 30 $ 26 $ 28
Average paid claim (in thousands) $ 58.7 $ 67.9 $ 60.2 $ 63.8 $ 63.5
Average reserve per delinquent loan (in thousands) $ 69.8 $ 66.2 $ 65.8 $ 63.4 $ 61.6
Loss Reserves
Beginning reserves $ 119 $ 115 $ 108 $ 105 $ 116 Paid claims $ (27) $ (28) $ (30) $ (26) $ (28)
Increase in reserves $ 25 $ 31 $ 37 $ 30 $ 17
Ending reserves $ 116 $ 119 $ 115 $ 108 $ 105
Delinquency Roll (Units)
Opening balance 1,792 1,756 1,708 1,703 1,860
New delinquent loans 1,052 1,160 1,147 1,102 1,053 Cures (733) (728) (658) (690) (764)
Paid claims (445) (396) (441) (407) (446)
Closing balance 1,666 1,792 1,756 1,708 1,703
Delinquency rate (2)
0.10% 0.11% 0.10% 0.10% 0.11%
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 and exclude delinquencies that have been incurred but not reported.
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 11
(amounts in millions of dollars, unless otherwise specified)2015 2015 2014 2014 2014
Policy Year Q2 Q1 Q4 Q3 Q2
2006 and Prior $ 31 $ 36 $ 44 $ 48 $ 54
2007 $ 44 $ 50 $ 51 $ 56 $ 63
2008 $ 57 $ 64 $ 62 $ 69 $ 77
2009 $ 48 $ 53 $ 54 $ 60 $ 68
2010 $ 104 $ 115 $ 128 $ 144 $ 161
2011 $ 148 $ 165 $ 194 $ 216 $ 241
2012 $ 225 $ 252 $ 293 $ 322 $ 352
2013 $ 314 $ 345 $ 376 $ 404 $ 430
2014 $ 545 $ 576 $ 599 $ 443 $ 241
2015 $ 332 $ 130 $ - $ - $ -
$ 1,847 $ 1,786 $ 1,799 $ 1,763 $ 1,686
(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 - Second Quarter 2015 Page 12
By Product Type and Loan Amount
(amounts in billions of dollars, unless otherwise specified) 2015 2015 2014 2014
Q2 Q1 Q4 Q3
Outstanding Insured Mortgage Balances $ 173 $ 169 $ 166
Transactional insurance $ 110 $ 111 $ 111
Portfolio insurance $ 63 $ 58 $ 55
Outstanding Insured Mortgage Balances (In Thousands of Units) 809 794 784
Transactional insurance 491 493 494
Portfolio insurance 319 301 289
Outstanding Insured Mortgage Balances by Loan Amount (%)
Over $550,000 7 7 6
$400,000 to $550,000 14 13 13
$250,000 to $400,000 35 36 35
$100,000 to $250,000 39 39 40
Less than $100,000 5 5 5
Total 100 100 100
Average loan size on outstanding insured mortgage balances
(in thousands) $ 214 $ 213 $ 212
Outstanding Insured Mortgage Balances(1) (2)
As Of The Quarter Ended
(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 mortgage insured balances are reported on a one quarter lag.
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Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 13
By Loan to Value and Province
2015 2015 2014 2014
Q2 Q1 Q4 Q3
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Transac-
tional Portfolio Total
Outstanding Insured Mortgage Balances (1) (2)
As Of The Quarter Ended
Effective Loan to Value by Year of Policy Origination (%)
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2009 and Prior 52 27 48 52 27 48 53 28 49
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2010 71 35 65 71 36 64 71 36 65
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2011 75 44 69 75 45 69 75 46 69
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2012 81 46 62 80 47 63 81 47 63
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2013 85 49 65 85 50 65 85 50 66
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2014 91 57 72 91 58 72 90 59 72
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2015 93 68 75 - - - - - -
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Total 72 49 62 71 48 62 70 48 62
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Outstanding Insured Mortgage Balances by Province (%)
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bleOntario 39 54 44 39 53 44 39 53 44
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British Columbia 12 17 14 12 17 14 12 17 14
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ble
Alberta 23 13 20 23 13 20 23 13 19
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rma
tio
n n
ot
curr
en
tly
ava
ila
ble
Quebec 15 9 13 15 10 13 15 10 14
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rma
tio
n n
ot
curr
en
tly
ava
ila
ble
Nova Scotia 2 1 2 2 1 2 2 1 2
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
Saskatchewan 4 2 3 4 2 3 3 2 3
Info
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tio
n n
ot
curr
en
tly
ava
ila
ble
Manitoba 2 2 2 2 2 2 2 2 2 In
form
ati
on
no
t cu
rre
ntl
y a
vail
ab
le
New Brunswick 1 1 1 1 1 1 1 1 1 In
form
ati
on
no
t cu
rre
ntl
y a
vail
ab
le
Newfoundland 2 1 1 2 1 1 1 1 1
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tio
n n
ot
curr
en
tly
ava
ila
ble
Prince Edward Island - - - - - - - - -
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tio
n n
ot
curr
en
tly
ava
ila
ble
Territories - - - - - - - - -
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n n
ot
curr
en
tly
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ila
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Total 100 100 100 100 100 100 100 100 100
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n n
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en
tly
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Outstanding Insured Mortgage Balances by Effective Loan to Value (%) (3)
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n n
ot
curr
en
tly
ava
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95.01% and above 8 - 5 6 - 4 5 - 3
Info
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n n
ot
curr
en
tly
ava
ila
ble
90.01% to 95.00% 10 - 6 10 - 6 9 - 6
Info
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n n
ot
curr
en
tly
ava
ila
ble
85.01% to 90.00% 11 - 6 11 - 7 12 - 7 Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
80.01% to 85.00% 13 2 8 13 1 8 13 1 9
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
75.01% to 80.00% 12 8 10 13 7 11 13 7 11
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
70.01% to 75.00% 10 10 10 11 9 10 11 9 10
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
65.01% to 70.00% 8 9 9 8 9 9 8 9 9
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
60.01% to 65.00% 6 9 7 6 9 7 6 9 7
Info
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tio
n n
ot
curr
en
tly
ava
ila
ble
55.01% to 60.00% 4 8 6 4 8 6 4 8 6
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
50.01% to 55.00% 3 7 5 3 7 5 3 7 5
Info
rma
tio
n n
ot
curr
en
tly
ava
ila
ble
50.00% and lower 15 47 28 15 48 28 15 49 28
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tio
n n
ot
curr
en
tly
ava
ila
ble
Total 100 100 100 100 100 100 100 100 100
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n n
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en
tly
ava
ila
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(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 mortgage 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 - Second Quarter 2015 Page 14
By Delinquent Loans and Delinquency Rates by Loan-to-Value, Province and Year of Policy Origination
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Q2 Q1 Q3
Outstanding Insured Mortgage Balances (1) (2)
As Of The Quarter Ended
2015 2015 20142014
Q4
Total insured loans 809,140 793,700 783,700
Total insured delinquent loans 1,792 1,756 1,708
Total insured loan delinquency rate (3)
0.22% 0.22% 0.22%
Transactional insurance - insured loans 490,520 493,200 494,400
Transactional insurance - delinquent loans 1,532 1,493 1,477
Transactional insurance loan delinquency rate (3)
0.31% 0.30% 0.30%
Portfolio insurance - insured loans 318,620 300,500 289,300
Portfolio insurance - delinquent loans 260 263 231
Portfolio insurance loan delinquency rate (3)
0.08% 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)
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
Ontario 44 407 0.11 44 395 0.11 44 431 0.12
British Columbia 14 260 0.29 14 268 0.30 14 279 0.32
Alberta 20 220 0.17 20 222 0.18 19 207 0.17
Quebec 13 584 0.43 13 569 0.42 14 516 0.37
Nova Scotia 2 106 0.47 2 105 0.48 2 94 0.44
Saskatchewan 3 74 0.28 3 65 0.26 3 58 0.24
Manitoba 2 28 0.17 2 27 0.17 2 16 0.10
New Brunswick 1 73 0.45 1 64 0.40 1 71 0.45
New Foundland 1 27 0.21 1 25 0.20 1 20 0.17
Prince Edward Island - 10 0.32 - 13 0.42 - 14 0.46
Territories - 3 0.45 - 3 0.48 - 2 0.32 Total 100 1,792 0.22 100 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)
% of Outstanding
Insured Mortgage
Balances
Total Delinquent
Loans
% Delinquency
Rate (3)
2006 and Prior 4 184 0.25 5 193 0.23 7 190 0.21
2007 5 202 0.45 5 223 0.49 5 240 0.51
2008 5 236 0.54 5 224 0.50 6 222 0.48
2009 3 132 0.42 4 157 0.48 4 169 0.47
2010 8 251 0.36 9 250 0.34 10 271 0.35
2011 10 263 0.34 11 252 0.32 11 257 0.32
2012 17 283 0.21 17 284 0.21 18 249 0.18
2013 18 161 0.12 19 138 0.10 20 93 0.07
2014 24 80 0.05 24 35 0.02 19 17 0.01
2015 6 - - - - - - - - Total 100 1,792 0.22 100 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 mortgage 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 and exclude delinquencies that have been incurred but not reported.
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Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 15
By Original and Remaining Amortization Period
2015 2015 2014 2014
Q2 Q1 Q4 Q3
Transac-
tional Portfolio Total
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 Quarters Ended
Original Amortization Period (%)
35.01 years and greater 7 1 5 7 2 5 8 2 6
30.01 years to 35.00 years 20 7 14 20 7 16 21 8 17
25.01 years to 30.00 years 20 32 25 20 31 24 21 28 24
20.01 years to 25.00 years 52 38 47 49 38 45 46 38 43
15.01 years to 20.00 years 1 13 5 1 13 5 1 13 5
10.01 years to 15.00 years - 6 2 - 6 2 - 7 2
5.01 years to 10.00 years - 3 1 - 3 1 - 3 1
5.00 years and lower - - - 1 1 1 2 1 2
Total 100 100 100 100 100 100 100 100 100
Remaining Amortization Period (%)
35.01 years and greater - - - - - - - - -
30.01 years to 35.00 years 5 6 5 6 6 6 7 7 7
25.01 years to 30.00 years 22 30 25 24 28 25 26 26 26
20.01 years to 25.00 years 47 33 42 45 33 40 41 33 38
15.01 years to 20.00 years 17 17 17 17 18 17 17 18 17
10.01 years to 15.00 years 6 9 7 6 9 7 6 10 7
5.01 years to 10.00 years 2 4 3 2 4 3 2 4 3
5.00 years and lower - 1 1 - 1 1 - 1 1
Total 100 100 100 100 100 100 100 100 100
(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.
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Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 16
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.
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 17
“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.
“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.
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 18
“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.
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 19
“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.
“original amortization period” means the number of years that it will take to repay in full the original mortgage balance on the regularly scheduled
payment of principal and interest based at inception.
“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.
Genworth MI Canada Inc. Financial Supplement - Second Quarter 2015 Page 20
“remaining amortization period” means the estimated number of years that it will take to repay the outstanding mortgage balance as of the reporting
date based on the regularly scheduled payments of principal and interest.
“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 - Second Quarter 2015 Page 21
