Genworth MI Canada Inc.
2015 Annual Report

Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership affordable and accessible to more Canadians.

As at December 31, 2015, Genworth Canada had $6.2 billion in total assets and $3.4 billion in shareholders' equity.

2015 Financial and Operating Highlights

CEO Letter
to Shareholders


SEE FULL CEO Letter to shareholders

In conversation
with Brian Hurley,
Executive Chairman

Good corporate governance makes good business sense. It helps companies make the right decisions, enhances their performance and protects the interests of all key stakeholders.

At Genworth Canada, corporate governance is a priority. A key part of our Board's mandate is to make sure we continue to invest in the systems, processes and talent needed to continually add value, minimize risk and protect our reputation.

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Q&A with Executive Team

Debbie McPherson
Senior Vice President, Sales and Marketing

Q: How do you retain and grow share in a dynamic and highly regulated market?

A: Growing our share of the mortgage insurance premiums market requires creating and maintaining close relationships with our customers. We strive to understand their business goals and objectives in order to deliver a value-added sales and service experience that helps customers grow their business, reduce costs and fund higher-quality loans. Our customers view Genworth Canada as an essential resource and rely on the business for support beyond the mortgage insurance transaction. We provide continuing education, market research and data, business development resources and a variety of customized solutions to support their business needs. In 2015 we delivered more than 6,000 training sessions to more than 47,000 mortgage and real estate industry professionals across Canada; we consulted with customers to identify market research needs and conducted a first-time homeownership study that provided valuable insights into current homebuyer trends and behaviours; and we continued to nurture each and every relationship to achieve customer satisfaction and solidify our position as the mortgage insurer of choice.

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Scott Gorman
Senior Vice President, Operations

Q:How would you describe the underwriting and loss-mitigation value proposition that Genworth Canada brings to your customers and the marketplace?

A: When it comes to customer service, we constantly strive for a clear and consistent client experience through the use of innovation and industry-leading service standards. Whether it's through our automated decisioning capability, through the dedicated underwriters who understand the uniqueness of each lender or in the processing and paying of claims, we believe that a predictable experience will help our clients manage their books of business. By adopting a collaborative approach with our customers, we are able to help them minimize any losses, avoid defaults and keep their borrowers in their homes.

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Winsor Macdonell
Senior Vice President, General Counsel and Secretary

Q: How do you retain and grow share in a dynamic and highly regulated market?

A: Canada is recognized worldwide as having one of the most sound housing finance regimes in the world. Canada's legislative and regulatory frameworks enabled the country to weather the global financial crisis without enduring the challenges that other countries experienced. Policies and processes such as mortgage recourse, mandatory mortgage insurance, non-deductibility of mortgage interest and the strong role played by the government distinguished Canada from other countries. These policies also enabled the government to make changes to the market to ensure that Canadians continue to be able to have homes that they can afford.

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Craig Sweeney
Senior Vice President, Chief Risk Officer

Q: Can you describe the Company's risk philosophy and culture?

A: Given the nature of this insurance business, we are inherently exposed to various types of risks. A culture of strong risk management is important for preserving franchise value and enhances the Company's business performance over the long term. When such a culture is combined with a robust risk framework, it effectively supports appropriate risk awareness and behaviours, as well as sound risk-based decision making. A key component of our risk culture is our risk-governance framework. The governance framework is designed to ensure that the Board and the leadership team have effective oversight of the risks faced by the Company...

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Philip Mayers
Senior Vice President and Chief Financial Officer

Q: What are the key catalysts that will drive financial performance in 2016?

A: There continues to be regional economic pressure in Canada, but we believe that our loss ratio for 2016 will fall between 25 and 40 per cent. This reflects the strong portfolio risk profile resulting from our proactive risk-management practices. Although we will likely see an increase in our loss ratio year over year, total premiums earned are expected to increase modestly in 2016 by 5 per cent or more. This growth in underwriting revenues reflects the 2014 and 2015 transactional premium rate increases and is expected to be a meaningful contributor to earnings in 2016 and future years. We expect that underwriting profitability will be flat to modestly lower, depending on where the loss ratio falls within our projected range. And even though investment income is expected to be relatively flat, 2016 should be another year of solid financial performance overall.

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Corporate Social Responsibility Highlights

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Additional Downloadable Documents

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February 5, 2020 Q4 2019 Earnings Conference Call Slides
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