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SOURCE Genworth Canada
Net Operating Income of $91 million, 12% higher year-over-year
Operating Diluted EPS of $0.94/share, 15% higher year-over-year
Common Dividend Increase of 9% to $0.35 per share
TORONTO, Oct. 29, 2013 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) today reported third quarter 2013 net income of $96 million or $0.99 per diluted common share, and net operating income of $91 million or $0.94 operating earnings per diluted common share. As compared to the prior quarter, net income this quarter was 2% or $2 million lower, while net operating income was 3% or $3 million higher. As compared to the prior year, net income for this quarter was 13% or $11 million higher and net operating income was 12% or $10 million higher.
"Our disciplined business execution and the strong quality of our insurance portfolio resulted in one of our best quarters to date," said Brian Hurley, Chairman and Chief Executive Officer. "The low loss ratio of 22% is the principal driver of this quarter's results. We are also pleased to announce that our Board of Directors has approved a 9% increase to the quarterly common share dividend. This represents our fourth annual increase."
Third Quarter 2013 Key Financial Metrics:
Third Quarter 2013 Key Highlights:
On August 30, 2013, the Company paid a quarterly dividend of $0.32 per common share.
The Company also announced today that its Board of Directors approved a dividend increase to $0.35 per common share, payable on November 29, 2013, to shareholders of record at the close of business on November 15, 2013. This dividend represents a 9% increase in the quarterly payment to the Company's common shareholders.
As of September 30, 2013, shareholders' equity was $3.0 billion, representing a book value of $31.82 per common share on a fully diluted basis. Excluding accumulated other comprehensive income ("AOCI") shareholders' equity was $2.9 billion, or a book value of $30.50 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, the financial statements, Management's Discussion and Analysis, and the third quarter 2013 financial supplement are also posted on the investor section of the Company's website (http://investor.genworthmicanada.ca). Investors are encouraged to review all of these materials.
The Company's third quarter earnings call will be held on October 30, 2013 at 10:00 am ET (Local: 416-644-3414, Toll free: 1-800-814-4859, Conference ID: 4641371). The call is accessible via telephone and by audio webcast on the Company's website. Slides to accompany the call will be posted just prior to its start. A replay of the call will be available until November 30, 2013 (Local 416-640-1917, Toll Free 1-877-289-8525, Access Code 4641371#). Participants are encouraged to pre-register for the webcast through the Company's website. A replay of the call will also be available from the Company's website for a period of at least 45 days following the conference call.
About Genworth MI Canada Inc.
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 more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For almost two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at September 30, 2013, Genworth Canada had $5.6 billion total assets and $3.0 billion shareholders' equity. Find out more at www.genworth.ca.
|Consolidated Financial Highlights|
|($ millions, except per share amounts)||
Ended September 30
Year- to- date
Ended September 30
|New insurance written||10,295||9,876||27,292||32,814|
|Net premiums written||161||178||382||434|
|Net premiums earned||143||147||431||442|
|Losses on claims||32||44||111||148|
|Investment income (interest/dividends, net of expenses) 1||45||39||134||123|
|Realized and unrealized gains or losses on investments||7||5||25||11|
|Total investment income||51||44||160||134|
|Net operating income1||91||81||264||236|
|Fully diluted earnings per common share||$0.99||$0.86||$2.88||$2.48|
|Fully diluted operating earnings per common share1||$0.94||$0.82||$2.70||$2.39|
|Fully diluted book value per common share, inc. AOCI||$31.82||$28.72||$31.82||$28.72|
|Fully diluted book value per common share, excl. AOCI1||$30.50||$26.45||$30.50||$26.45|
|Basic weighted average common shares outstanding||96,426,269||98,691,648||97,772,710||98,681,032|
|Diluted weighted average common shares outstanding||96,561,756||98,691,648||97,907,664||98,910,753|
|Operating return on equity1||13%||12%||12%||12%|
|Minimum Capital Test ratio (MCT)||218%||164%||218%||164%|
This is a financial measure not calculated based on International
Financial Reporting Standards ("IFRS").
See the "IFRS and Non-IFRS Financial Measures" section of this press release for additional information.
IFRS and Non-IFRS Financial Measures
The Company's consolidated financial statements are prepared in accordance with IFRS. To supplement its financial statements, the Company uses select non-IFRS financial measures. Non-IFRSs measures used by the Company to analyze performance include underwriting ratios such as loss ratio, expense ratio and combined ratio, as well as other performance measures such as net operating income and return on operating income. Other non-IFRS measures used by the Company include shareholders' equity excluding AOCI, insurance in-force, new insurance written, MCT ratio, delinquency ratio, severity on claims paid, operating earnings per common share of the Company (basic and diluted), book value per common share (basic and diluted; including and excluding AOCI), dividends paid per common share of the Company, and portfolio duration. 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 measures do not have standardized meanings and are unlikely to be comparable to any similar measures presented by other companies. These measures are defined in the Company's glossary, which is posted on the investor section of the Company's website. To access the glossary, click on the "Glossary" link under "Investor Resources" subsection at the bottom of the page. A reconciliation of non-IFRS financial measures to the most recently comparable measures calculated in accordance with IFRS can be found in the Management's Discussion and Analysis filed with the Company's most recent financial statements, which are available on the Company's website and on SEDAR at www.sedar.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These forward-looking statements include, but are not limited to, the Company's plans, objectives, expectations and intentions, and other statements contained in this release that are not historical facts. These statements may be identified by their use of words such as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", or 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, statements with respect to the Company's expectations regarding the effect of the Canadian government's new government guarantee legislative framework, the effect of the changes to the government guarantee mortgage eligibility rules, and the Company's beliefs as to housing demand and home price appreciation, unemployment rates, the Company's future operating and financial results, sales expectations regarding premiums written, capital expenditure plans, dividend policy and the ability to execute on its future operating, investing and financial strategies. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the Company's control. The Company's actual results may differ materially from those expressed or implied by such forward-looking statements, including as a result of changes in global, political, economic, business, competitive, market and regulatory factors, and the other risks described in the Company's Annual Information Form dated March 18, 2013. Other than as required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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