The insurer revealed how it performed in 2021's first quarter
Sagen MI Canada Inc., formerly Genworth MI Canada, reported across-the-board increases in its Q1 2021 results.
During the quarter ending March 31, the insurer’s net income grew by 41% annually to end up at $133 million, while net operating income had a 19% gain during the same timeframe to reach $139 million.
The company reported that the increase in net income stemmed primarily from lower losses on claims, higher premiums earned, lower losses from derivatives and foreign exchange, and lower expenses, while it was partially offset by lower operating investment income.
Sagen’s most notable increase was in its new insurance written from transactional insurance, which totalled $6.1 billion after spiking by $2.9 billion in the 12 months leading to Q1 2021. “The increase was primarily due to an increase in transactional mortgage originations and an increase in market share,” the insurer said.
Premiums written from transactional insurance stood at $214 million, growing by $104 million year over year.
Meanwhile, new insurance written from portfolio insurance on low loan-to-value mortgages amounted to $2.7 billion, growing by $1.8 billion annually “primarily due to increased demand from lenders.” Premiums written from this segment were $9 million, up by $5 million annually.
Sagen’s loss ratio, as a percentage of premiums earned, during the first quarter was just 3%, considerably lower than the 14% a year ago.
“Losses on claims of $6 million were $18 million lower than the same quarter in the prior year, primarily due to significant favourable development related to the strong housing market and improved employment levels,” Sagen said.