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Press Release: Genworth MI Canada Inc. Reports -2-

· 02/04/2021 17:38
($ millions, Three Months EndedDecember Twelve Months EndedDecember unless 31(st) (unaudited), 31(st) (unaudited), otherwise specific) 2020 2019 2020 2019 Total investment income $48 $50 $170 $174 Adjustment to investment income: Net Losses from Investments, derivatives and foreign exchange(1) (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 exchange(1) (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 exchange(1) (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 exchange(1) (0.01) 0.05 0.22 0.43 Operating earnings per common share (diluted) (2) $1.43 $1.30 $5.33 $5.38 Note: Amounts may not total due to rounding. (1) Includes realized and unrealized gains and losses from derivatives and foreign exchange, excluding realized income and expense from the interest rate hedging program. (2) The difference between basic and diluted earnings per common share and basic and diluted operating earnings per common share is caused by the potentially dilutive impact of share-based compensation awards.($ millions, Three Months EndedDecember Twelve Months EndedDecember except per 31(st) (unaudited), 31(st) (unaudited), share amounts) 2020 2019 2020 2019 Transactional new insurance written(1) $9,538 $5,065 $25,796 $19,347 Portfolio new insurance written(1) 3,222 1,332 19,226 6,062 Total new insurance written(1) $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 income(1) $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 share(1) $1.43 $1.30 $5.33 $5.38 Fully diluted book value per common share, incl. AOCI(1) $44.68 $44.58 $44.68 $44.58 Fully diluted book value per common share, excl. AOCI(1) $42.85 $44.45 $42.85 $44.45 Loss ratio(1) 10% 20% 16% 17% Combined ratio(1) 31% 41% 36% 37% Operating return on equity(1) 13% 11% 13% 12% MICAT ratio (1,3) 187% 170% 187% 170% Transactional delinquency ratio(1, 2) 0.25% 0.29% 0.25% 0.29% Portfolio delinquency ratio(1, 2) 0.09% 0.10% 0.09% 0.10% Delinquency ratio(1, 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. (2) Based on outstanding balance and excludes delinquencies that have been incurred but not reported. (3) Company estimate at December 31(st) , 2020.

As at December 31(st) , 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 Canada(TM) effective October 13(th) , 2020. The Company, operating through its subsidiary, Genworth Financial Mortgage Insurance Company Canada doing business as Sagen(TM) , 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 31(st) , 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 aaron.williams@sagen.com

Media -- Susan Carter, 905-287-5520 susan.carter@sagen.com

Consolidated Financial Highlights

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.

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

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February 04, 2021 17:38 ET (22:38 GMT)