Genworth MI Canada Inc
Annual Report 2012

Plain-text annual report

Genworth MI Canada Inc. 2012 Annual Report the Genworth Canada difference innovation excellence results Genworth MI Canada Inc. corporate profile 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 superior customer service, 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 December 31, 2012, Genworth Canada had $5.7 billion in total assets and $3.0 billion in shareholders’ equity. COMPETITIVE STRENGTHS COMPETI TI VE S TR ENG T HS VALUES V AL UES Solid lender relationships Best-in-class service and technology Disciplined risk management Collaborative culture Heart Integrity Financial strength Excellence 2012 Financial and Operating Highlights Net premiums written Adjusted net operating income2 Combined ratio Adjusted operating return on equity2 Adjusted operating earnings per share2 (diluted) Dividends paid per common share $550 million $339 million 51 % 13 % $3.43 $1.19 Book value per share (diluted, including AOCI) Operating earnings per share (diluted) Operating return on equity (%) 35 28 21 14 7 0 08 091 10 11 122 5 4 3 2 1 0 $4.67 4 2 1 $ . 3 4 . 3 $ Adjusted 08 091 10 11 122 20 16 12 8 4 0 17% % 5 % 3 1 Adjusted 08 091 10 11 122 1 Excludes $100 million impact of change in premium recognition curve for the quarter ended March 31, 2009. Including the impact of changes to the premium recognition curve, for the year ended December 31, 2009, operating earnings per share (diluted) would have been $3.23 and operating return on equity would have been 16%. 2 Adjusted for the impact of the government guarantee fund exit fee reversal in 2012. Including the impact of the government guarantee exit fee reversal, net operating income, operating return on equity and operating earnings per share (diluted) were $462 million, 17% and $4.67 respectively. Note: 2008 and 2009 amounts are based on Canadian GAAP measures; 2010, 2011 and 2012 amounts are presented on an IFRS basis. For further information refer to MD&A. Note: Amounts may not total due to rounding. ConTenTs ifc Corporate profile 1 Report to shareholders 2 Letter to shareholders 4 service 6 Risk management 8 Finance 10 Corporate responsibility 14 Chairman’s award 16 Board of Directors 17 shareholder information the Genworth Canada difference Fostering a spirit of innovation and excellence, where nothing is static and everything can always be improved, is what enables Genworth Canada to deliver year after year of profitability and attractive returns for shareholders. Our difference is in our people and the way we do business. We believe in responsible homeownership and we are committed to working with our customers to help Canadians achieve their homeownership dreams. GENWOR tH MI C ANA DA I NC . 2012 A NN uAL R EPOR t 1 Genworth MI Canada Inc. dear fellow shareholders In 2012, Genworth MI Canada (Genworth Canada) continued a trend of solid annual growth, delivering an 11%1 increase in adjusted earnings per share and over 14%1 increase in book value per share (diluted). In each quarter we reported strong results, and we ended the year having delivered on all our strategic priorities. We achieved this in a year marked by challenges due to a changing regulatory landscape. this success is credited to the long-standing relationships we have with our customers – relationships built on trust and collaboration – that earned us an improved market position and helped offset the smaller high loan-to-value market. Managing the changing regulatory landscape the mortgage default insurance industry was subjected to greater scrutiny in 2012 as a result of the Office of the Superintendent of Financial Institutions (OSFI) taking on a broader supervisory role over the public sector insurer. this created a more consistent application of rules and regulations and gave OSFI more insight into the industry. In addition, mortgage insurance product changes were implemented. the most significant changes were the reduction of the maximum amortization period for high loan-to-value mortgages to 25 years, and the lower maximum loan-to-value for refinances of 80%. While these rules had their intended effect of slowing the housing market, they also contributed to improved borrower profiles. the new government guarantee legislative framework governed by the Protection of Residential Mortgages or Hypothecary Insurance Act of Canada (PRMHIA) was finalized at the end of the year. PRMHIA, which took effect January 1, 2013, had a positive impact on the Company’s year-end financial results and formalized the government guarantee and market structure. this provides more transparency into the mortgage insurance industry for all Canadians. While this dynamic regulatory landscape has presented some challenges for our industry, we recognize the importance of maintaining stability in the housing sector. through our active government relations efforts, ongoing market research and astute risk management, we continue to play an important role in helping protect the safety and soundness of Canada’s housing market. Delivering on strategic priorities Last year we promised shareholders that our senior management team would maintain its focus on smart business decisions, on customers and on shareholder returns. this is how we always do business, and our approach was successful again in 2012. Our strategic wins in 2012 include the following: • Increased our share of market with key customers through service excellence • Strengthened our competitive position by capitalizing on portfolio insurance market opportunities • Enhanced business flexibility with the purchase of PMI Canada • Reinforced financial strength and flexibility with the finalization of PRMHIA and related minimal capital test requirements Loss mitigation is also a core part of our overall strategy. We continued to successfully execute our market-leading asset management and homeowner assistance programs, contributing to a full year loss ratio of 33%, which was below our long-term target range. As a result of these and other initiatives, we delivered on all our priorities and ended the year with $5.7 billion in total assets and $3 billion in shareholders’ equity. this generated a 13%1 full-year adjusted return on equity. Improving top line growth, proactively managing risk and maintaining a strong balance sheet will remain our key priorities. Maintaining service leadership position With nearly 20 years in the business, focused on delivering the best customer experience, service is a key element of our value proposition. Lender customers want quick turnaround times, flexible underwriting, consistent decisions and knowledgeable people to deal with. this is what we offer. Each of our customers is appointed a tailored and cross-functional service team that brings together people from management to sales to underwriting to finance and risk. through this approach, our customers benefit from having direct contacts with multiple touch points, each of whom understands our customers‘ business and their particular needs. Our entire business is aligned with this customer-centric model and that is what sets us apart. 3-year compound annual growth of 11% in book value per share Dividend increase of 10% or more each year since 2010 1 Amount based on non-GAAP measures. For further information refer to MD&A. 2 GENWO R tH MI C ANADA I NC . 2 012 A NN uAL R EP OR t Making a difference the passion that our employees demonstrate in their commitment to our customers is also evident in their commitment to helping build stronger communities throughout Canada. there is an active culture of volunteerism at the Company and it extends across all provinces. All of our employees are encouraged to take time from their work day to participate in meaningful volunteer activities. And this year our reach went beyond the Canadian borders. For the second year in a row Genworth Canada supported the Jimmy and Rosalynn Carter Habitat for Humanity Project in Haiti. three of our very own took part in this intensive mission of building 100 homes in one week for victims of the 2010 earthquake that ravaged the country. Confi dent outlook on our future the Canadian mortgage insurance industry is a vibrant one. For many fi rst-time homebuyers, purchasing a home would be out of reach were it not for mortgage insurance. Enabling responsible homeownership helps more families start building equity in a home sooner, which helps maintain a healthy and stable housing market. While the industry remains subject to economic fl uctuations and regulatory infl uences, our view is one of stability in the housing sector. By remaining focused on insuring high-quality loans, and maintaining a well-diversifi ed insurance portfolio, we will protect and grow the strong business that Genworth Canada has built. Our proven strategy, our knowledgeable and passionate employees, and our seasoned management team will enable the Company to maintain its track record of profi tability. thank you to our shareholders, our customers, our partners and our employees for your thank you to our shareholders, our customers, our partners and our employees for your continued support and loyalty. “ the housing market in Canada remains healthy, supported by population growth, rising employment and continued low interest rates. First-time homebuyers and new immigrants are among those who will continue to fuel the demand for average-priced homes across the country.” Brian Hurley Chairman and Chief Executive Offi cer link to video ANNuAL REPORt GENWORtH MI CA NA DA INC. 2 012 A NNuAL R EPO Rt 3 3 Service the Genworth Canada difference our customer service differentiation At Genworth Canada, we believe in creating customer experiences that foster engagement, nourish relationships and sustain profitability. Through the dedication and experience of our account managers and underwriters, and our constantly evolving processes and technology, we deliver value beyond mortgage insurance. In 2012, Genworth Canada delivered more than 6,000 training sessions to more than 40,000 lenders, mortgage originators, brokers and realtors across the country. Hosted in our state-of- the-art in-house training facilities, at a customer location, or online, our accredited programs are designed to enhance the knowledge and skills of mortgage industry professionals nationwide. 4 GENWO R tH MI C ANADA I NC . 2 012 A NN uAL R EP OR t Strong collaboration with our lenders Genworth Canada’s ongoing success is a result of the collaborative relationships we have with all our lenders. Our cross-functional and multi-faceted customer service approach has enabled us to build strong working relationships within all channels of our lenders’ businesses – from the C-suite to mortgage specialists to underwriters in the branches. this integration of our resources is a core part of the Genworth Canada value proposition. We start by actively listening to our customers in order to understand their needs across the value chain. We then assess those needs to determine where we can add value to help them grow their business. And ultimately, we deliver on that promise by working as a team and aligning our resources to meet those customer needs. One example of a unique service we offer, that lender customers have come to rely on, is our customer portfolio review. On a regular basis we do a deep analysis of the lender’s portfolio that is insured by us and provide detailed performance data. Included in this review are peer comparisons that allow our customers to benchmark their performance. this is just one example of where Genworth Canada adds value beyond mortgage insurance. Driving growth In 2012, we faced an increased demand from our lender customers for portfolio insurance on low loan-to-value mortgages. Adopting a strategic and measured approach, and staying true to our prudent risk parameters, we insured 20 billion in portfolio business throughout the year. Our fl exible and constantly improving underwriting processes also helped generate increased volumes in our core high loan-to-value business. Our in-house underwriters are trained to think outside the box while still adhering to our disciplined underwriting guidelines. In an environment of frequent and signifi cant regulatory changes, this approach becomes even more valued because fewer fi les can be approved through auto-decisioning methods. through our proprietary market and property data, we can better assess properties and identify the best solutions to help more Canadians become, and remain, homeowners. Building strategic alliances There are a number of infl uencers that we maintain strong relationships with to help promote the value of a Genworth Canada-insured mortgage to fi rst-time homebuyers. Our strategy with the broker segment, for example, has proved valuable. By offering a range of services to help them grow their business, including marketing resources, professional training and innovative mobile tools, brokers have come to rely on Genworth Canada as a true partner. As a result, they champion the value of a Genworth Canada-insured mortgage to their customers. this year, we made a strategic decision to reach out to the REALtOR® segment in a focused manner. Our efforts led to a strategic alliance with Canada’s largest network of realtors – Royal LePage. Royal LePage has recognized the value that Genworth Canada brings to their agent network, including information about mortgage insurance product offerings and educational resources to help agents better inform their clients about affordable homeownership options. this alliance gives us direct access to nearly 14,000 agents across Canada to help promote the Genworth Canada advantage to fi rst-time homebuyers. Making homeownership easier As part of our ongoing commitment to homeownership education, we redesigned our website to make it easier to access and share resources. through simple navigation and use of the latest technology, homebuyers, lenders, brokers, realtors and investors can now quickly get to the information and tools they need from one central location. Our live social media stream also makes it easier for visitors to access homeownership tips, articles and videos and share them instantly through social media networks. Visit the new Genworth.ca and see for yourself how Genworth Canada makes homeownership easier. “ to stand apart, our agents must become better equipped to advise clients on the fi nancial aspects of homeownership. Genworth Canada will help get us there.” Phil Soper President and CEO, Royal LePage GENWORtH MI CA NA DA INC. 2 012 A NNuAL R EPO Rt 5 Risk Management the Genworth Canada difference our unique approach to risk management Prudent risk management is a cornerstone of our business. our proactive and disciplined risk management framework allows us to maintain a high-quality and well-diversified portfolio. With more than 20 years of data, we have established proprietary tools and processes that our lenders find valuable and that contribute to the safety and soundness of Canada’s housing market. Genworth Canada’s risk management team includes analysts, actuaries, real estate experts and regional risk managers who work together to monitor and evaluate housing and neighbourhood risk across the country. Our proprietary collateral risking model uses a unique combination of neighbourhood and property-specific information to assess the quality and current market value of homes. this system is fully integrated into our underwriting platform and delivers real-time property values, sales history and neighbourhood details to our underwriters, which enables them to prudently assess the property risk while still delivering a fast and efficient response to our customers. 6 GENWO R tH MI C ANADA I NC . 2 012 A NN uAL R EP OR t Ongoing monitoring of the economic environment A critical component of Genworth Canada’s risk management framework is our ability to assess the macroeconomic environment. We invest in dedicated internal resources as well as reliable external sources to keep a pulse on the national, regional and local economic trends and employment drivers that impact the housing market. two key measures we monitor closely are housing affordability and prices relative to income. By keeping a close watch on factors that impact supply- and-demand dynamics, we identify emerging risks early on and take proactive measures to address such risks within our underwriting process. Geographical dispersion Saskatchewan 2% Quebec 14% Our current view is that the housing market in Canada remains balanced, supported by immigration, demographics and a stable employment rate. the market is transitioning to a lower and more sustainable level of sales activity, due in part to tighter mortgage rules. this helps balance the market and bodes well for its long-term stability. Ontario 46% Alberta 16% British Columbia 16% Manitoba 2% New Brunswick 1% Newfoundland 1% Nova Scotia 2% Proactive and disciplined underwriting Another key element of our risk management framework is our disciplined underwriting approach. We control the quality of new risk by reviewing every high loan-to-value application to assess the risk profile of the loan and compliance to our credit guidelines. Our process is complimented by a proprietary mortgage scoring model which uses key loan attributes such as borrower credit score, loan amount, total debt service ratio, property type and loan-to-value, to assess the amount of risk associated with both the property and the borrower. In 2012, we took extra precaution with respect to our risk concentration in certain watch areas such as Vancouver and toronto condominiums. By identifying emerging risks early in their development, we were able to implement targeted changes to our underwriting and collateral adjudication process, which helped improve the risk profile on new insurance written in these areas. Finally, this is supported by a robust quality assurance process that reviews not only our internal underwriting but also our lenders’ underwriting to ensure the appropriate level of due diligence is completed and decisions are compliant with our guidelines. Improved loss performance We continue to focus on borrower quality because experience shows us that high credit scores drive better loss performance. Our average credit score for new insurance written has increased since 2006 from approximately 714 to 730. the average credit score at the time of origination, on our insurance in-force at the end of 2012, was 720. Average credit score* Insurance-in force new insurance written 2010 719 727 2011 719 727 2012 720 730 *the credit scores from all insured high-ratio borrowers were used to calculate the average score. Another positive development is the overall improvement in our portfolio quality. Since 2008 we’ve seen increasingly stronger borrower profiles as a result of a series of mortgage rule changes and our dynamic risk management approach. this is positive for our business and for the Canadian economy as a whole because stronger borrowers help sustain the safety and soundness of our housing market. Effective asset management program Our unique asset management program continues to provide significant savings and further differentiates us from our competitors. We now manage the marketing and sale of foreclosed properties for the majority of our customers. this value-added service helps streamline the process and reduces our overall losses on claims. GENWOR tH MI C ANA DA I NC . 2012 A NN uAL R EPOR t Credit score dispersion (% based on insurance-in-force between 1995 and 2012) 700+ 66% Average Credit Score 720 no score 3% < 600 1% < 660 11% <700 19% Loan-to-value distribution Loan-to-value by book year % 5 5 % 7 4 % 1 4 % 0 4 % 4 2 % 4 2 % 7 2 % 6 2 % 6 % 6 % 5 2 % 3 2 % 2 1 % 7 2 % 0 1 % 7 09 10 11 12 <= 80 > 80–85 > 85–90 > 90–95 Effective Loan-to-Value Effective loan-to-value (LTV) % 0 9 % 1 9 % 2 9 % 1 9 % 2 7 % 4 7 % 8 6 % 1 9 % 1 8 % 0 9 % 7 8 % 0 9 % 1 9 % 9 3 06 & Prior 07 08 09 10 11 12 Original LTV Effective LTV 09 10 11 12 7 60 50 40 30 20 10 0 100 80 60 40 20 0 06 & Prior 07 08 09 10 11 12 > 90–95 > 85–90 > 80–85 <=80 Effective LTV Original LTV Finance the Genworth Canada difference leveraging our fi nancial strength and stability In 2012, Genworth Canada maintained its track record of delivering strong profi tability and shareholder returns. By remaining focused on proactive risk management, superior customer service and disciplined fi nancial management, the Company achieved top-line growth, loss ratio improvement, increased net operating income and enhanced capital strength. Approximately one-third of our earnings is generated from our $5.4 billion investment portfolio. Our strategy for managing the investment portfolio is two pronged. Our investment committee assesses the fi nancial markets, sets our risk appetite, determines our portfolio allocation and monitors investment portfolio performance. We also employ two external managers with expertise in managing both fi xed income and equities to execute the portfolio strategy. through this approach, we maintain a sharp focus on diversifying our risk profi le while taking advantage of best-in-class investment managers. 8 GENWO RtH MI C ANADA I NC. 201 2 ANNuAL RE PORt Solid financial performance in 2012 While the Company’s year-end results were positively impacted by the finalization of the government guarantee legislative framework, adjusted earnings were still higher than the prior year and above market expectations. We delivered total net operating income of $462 million, adjusted net operating income of $339 million, and maintained a consistent operating return on equity of 13%. Net premiums written of $550 million were higher by 3% compared to the prior year. We successfully offset the effects of a smaller high loan-to-value mortgage market by growing our market penetration and capitalizing on portfolio insurance opportunities. We also continued to see an improved delinquency rate, down 6 bps to 0.14% as at December 31, 2012, due in part to the ongoing aging of the 2007 and 2008 books, the improvement in the Alberta housing market and the ongoing success of our loss mitigation programs. these solid financial results contributed to a 14% increase in our book value per share (diluted), to $30.62 as of the end of 2012. the current macroeconomic environment, together with our strong insurance portfolio quality and geographic diversification, supports our ability to continue to deliver strong profitability. Minimum capital Minimum capital test ratio test ratio (MCT) (%) (%) 0 1 2 0 7 1 2 6 1 6 5 1 9 4 1 7 2 1 Net premium written (in millions) Capital management flexibility Our capital position remains strong. We ended 2012 with $3 billion in shareholders’ equity and a regulatory minimum capital test (MCt) ratio of approximately 170%, well above our internal target of 145%. 1000 Net premium earned (in millions) Combined ratio Net premium written (%) (in millions) under the new guarantee rules that took effect January 1, 2013, our operating MCt ratio increased to approximately 210%, further strengthening our claims paying ability. We intend to operate with a MCt ratio moderately above 190% and have established an internal MCt ratio of 185%. We remain focused on balancing capital strength and capital efficiency. 1 2 6 2 1 6 9 8 5 6 0 7 200 400 600 800 6 4 7 5 0 5 3 5 1 5 2 5 5 3 3 5 0 5 5 08 09 2 5 5 10 3 3 5 11 0 5 5 12 Jan. 1, 2013 0 1 6 8 1 5 0 6 3 Since our initial public offering in 2009, we have returned $485 million through 0 share buybacks, approximately $50 million in special dividends, and we maintain a low debt-to-capital ratio of 12%. We are pleased to have paid a regular common dividend every quarter since December 2009. 0 6 3 6 0 7 08 0 500 08 400 Net premium written Net premium written (in millions) (in millions) Net premium earned Net premium earned (in millions) (in millions) Combined ratio (%) Combined ratio (%) Loss ratio Loss ratio (%) (%) Net premiums written ($ in millions) Net premiums earned ($ in millions) 6 0 7 6 0 7 2 5 5 2 5 5 0 5 5 3 3 5 3 3 5 0 5 5 0 1 6 8 1 5 1 0 2 1 6 6 8 1 5 2 1 6 1 2 6 2 1 6 9 8 5 9 8 5 0 6 3 0 6 3 7 5 7 5 3 5 0 5 6 4 6 4 3 5 1 5 0 5 1 5 2 4 2 4 7 3 7 3 3 3 3 3 3 3 3 1 3 3 1 3 08 09 08 10 09 11 10 12 11 12 08 09 08 10 09 11 10 12 11 12 08 09 08 10 09 11 10 12 11 12 08 09 08 10 09 11 10 12 11 12 Investment income Investment income (in millions) (in millions) Net operating income ($ in millions) Net operating income Net operating income (in millions) (in millions) Investment income ($ in millions) Assets (in millions) Assets (in millions) Shareholders’ equity Shareholders’ equity Excluding AOCI1 (in millions) Excluding AOCI1 (in millions) 2 6 4 4 2 3 3 4 3 4 2 3 7 0 3 8 1 3 7 0 3 3 4 3 2 2 1 8 1 3 9 3 3 2 6 4 2 2 1 9 3 3 d e t s u d A j d e t s u d A j 0 0 2 0 0 2 9 8 1 9 8 1 3 8 1 9 7 1 3 8 1 7 6 3 6 6 1 1 0 2 9 7 1 d e t s u d A j 7 6 3 6 6 1 1 0 2 d e t s u d A j 0 1 2 , 5 5 1 9 , 4 5 1 9 , 4 8 9 3 , 5 0 1 2 , 5 3 9 3 , 5 8 9 3 , 5 4 3 7 , 5 3 9 3 , 5 4 3 7 , 5 7 3 0 , 3 7 3 0 , 3 3 8 6 , 2 3 4 6 , 2 3 4 6 , 2 3 8 6 , 2 9 8 5 , 2 9 8 5 , 2 9 9 8 0 , 2 8 0 , 2 Net premium written Net premium written (in millions) (in millions) 11 10 08 11 10 08 09 09 12 12 Net premium earned Net premium earned (in millions) (in millions) 11 10 08 11 10 08 09 09 12 12 Combined ratio (%) Combined ratio (%) 08 10 09 11 08 10 11 09 12 12 Loss ratio Loss ratio (%) 08 (%) 08 09 10 09 11 10 12 11 12 1000 1000 Adjusted for government guarantee fund exit fee reversal. 1000 60 60 800 Loss ratio Net premium earned Loss ratio (%) (in millions) (%) 800 Combined ratio 800 (%) Combined ratio (%) Loss ratio (%) 40 40 600 400 200 0 1 6 8 1 5 1 3 600 600 7 5 400 400 6 4 3 5 1 5 0 5 200 200 3 3 0 0 20 20 2 4 1 3 0 0 7 3 3 3 3 3 2 4 1 2 6 2 1 6 9 8 5 7 3 3 3 60 60 40 40 20 20 0 0 10 08 09 11 10 12 12 High-quality investment portfolio 11 09 Our investment portfolio remains strong and generates about one-third of our income. With the elimination of the guarantee fund we now have full investment discretion over the entire portfolio. It contains a well-balanced mix of bonds and equities, earned $189 million in interest and dividends, and achieved $311 million of unrealized gains. Net operating income Net operating income (in millions) (in millions) Investment income Investment income (in millions) (in millions) 12 08 09 10 11 10 08 09 11 12 200 300 400 500 2 6 4 2 6 4 220 We are committed to maintaining a high-quality portfolio, and we continue to evaluate opportunities, within our risk appetite, to optimize its yield. 3 4 3 2 2 1 3 4 3 2 2 1 100 4 2 3 4 2 3 7 0 3 8 1 3 7 0 3 8 1 3 7 6 3 6 6 1 7 6 3 6 6 1 09 08 10 09 11 10 12 11 12 400 400 08 09 10 11 12 6000 6000 08 09 10 11 12 3300 3300 320 320 Assets (in millions) 300 Assets Assets ($ in millions) (in millions) 240 Shareholders’ equity Shareholders’ equity Including AOCI ($ in millions) Excluding AOCI1 (in millions) 240 Shareholders’ equity Excluding AOCI1 (in millions) 4000 4000 2200 2200 8 9 3 5 , 0 1 2 5 , 3 9 3 5 , 8 9 3 5 , 0 1 2 5 , 5 1 9 4 , 4 3 7 5 , 3 9 3 5 , 4 3 7 5 , 200 5 1 9 4 , 100 160 160 80 , 3 4 6 2 80 9 8 0 2 , , , 3 9 4 8 6 5 2 2 9 8 0 2 , 7 3 0 3 , 7 3 0 3 , 3 8 6 2 , 3 8 6 2 , 9 8 5 2 , 2000 2000 1100 1100 176 132 Federal fixed income (government guarantee) 17% 88 Net premium written (in millions) Federal fixed income 16% 44 d e t s u d A d e t s Cash and u d Other 5% A Net premium earned Common (in millions) shares 6% j j total: $5.4 billion 1000 08 09 08 10 09 9 3 3 9 3 3 Provincial fixed income 14% 0 0 2 0 0 2 9 8 1 9 8 1 3 8 1 9 7 1 3 8 1 0 0 0 0 0 0 0 0 1 0 2 9 7 1 d e t s u d A j 1 0 2 d e t s u d A j Combined ratio Net premium written (%) (in millions) Loss ratio Net premium earned (%) (in millions) Combined ratio (%) Loss ratio (%) 1000 800 600 400 200 0 60 40 20 0 11 10 12 11 12 1000 60 08 09 08 10 09 11 10 12 11 12 1000 08 60 09 08 10 09 11 10 12 11 12 60 08 09 08 10 09 11 10 12 11 12 0 08 09 10 11 12 Jan. 1, 2013 0 0 800 200 400 600 Corporate fixed income 42% 127 "08" 149 "09" 156 "10" GENWOR tH MI C ANA DA I NC . 2012 A NN uAL R EPOR t 162 "11" "12" 170 "Jan. 1, 2013" 210 800 600 400 200 40 20 Note: Amounts may not total due to rounding. 40 20 0 9 800 600 400 200 40 20 Cash and other Prov fixed income 400 400 Fed gov-gov guarantee Fed government 320 320 Corp fixed income 240 240 Common shares 160 160 "0" "0" 0 0 0 0 0 0 0 500 500 400 400 300 300 200 200 6000 6000 3300 3300 4000 4000 2200 2200 2000 2000 1100 1100 100 100 80 80 Portfolio Distribution Corporate Fixed Income 0 0 Federal Government Federal Government-Government Guarantee Provincial Fixed Income Cash and Other Common Shares Total Total $5.4 billion 12/31/12 2,241,661 838,306 949,037 743,921 278,307 328,411 0 41.7% 0 15.6% 17.6% 13.8% 5.2% 6.1% 5,379,642 100.0% 42% 16% 17% 14% 5% 6% 100% Rounded Percentages in Chart 0 0 0 0 Corporate Responsibility the Genworth Canada difference helping build stronger communities across Canada Genworth Canada is committed to helping build stronger communities across Canada. We do this by enabling responsible homeownership, promoting fi nancial literacy and supporting local and national causes that our people believe in. our values – heart, integrity and excellence – guide our people, in everything they do, at work and in their communities. In November 2012, nearly 500 volunteers from around the world embarked on a journey of goodwill and hope to Léogâne, Haiti. Among them were Linda Belanger, Hossam Khedr and Jamie Woods of Genworth Canada. Linda, Hossam and Jamie took part in the Jimmy and Rosalynn Carter Work Project, led by Habitat for Humanity International, and helped build 100 homes in one week for families still suffering from the devastating earthquake of January 2010. link to video 10 GENWO RtH MI C ANADA I NC. 201 2 ANNuAL RE PORt Enabling responsible homeownership In 2012, Genworth Canada helped more than 60,000 Canadian families become homeowners. We work together with lenders, acting as a second set of eyes, to make sure that lending decisions are sound and to protect and preserve the stability of our housing market. We are also committed to educating prospective homeowners. through our online consumer properties, including homeownership.ca, the GenworthHomeownershipBlog and GenworthSmartShopper on Facebook, we engage with fi rst-time homebuyers and help them make responsible homeownership decisions. Our annual national Homeownership Education Week is another exclusive Genworth Canada initiative that further supports our educational mandate. Promoting fi nancial literacy We continue to be committed to enhancing fi nancial literacy among Canadians. In 2012, we hosted a seminar for mortgage industry professionals to share the results of our annual fi nancial fi tness survey. Conducted in partnership with the Canadian Association of Credit Counselling Services (CACCS), this survey, now in its fourth year, provides insight into Canadians’ fi nancial stability, consumer confi dence and views on homeownership. Recognizing the need for greater fi nancial education among youth, we also signed a sponsorship agreement with EnRICHed Academy. this innovative program teaches teenagers and young adults how to earn, save and invest their money. As sponsors, we contribute content to help teach youth what they need to do in order to save for a downpayment and become responsible homeowners early in adult life. Helping homeowners in need A sudden job loss, illness, injury, marital breakdown or other life altering situation, can have a devastating impact on a homeowner’s fi nancial well-being and threaten their ability to meet their mortgage payments. Genworth Canada’s Homeowner Assistance Program was designed to help families stay in their homes while they struggle to manage through temporary fi nancial diffi culties. By avoiding foreclosure, we not only help prevent a family from losing their home, but we also avoid a claim and help preserve the stability of our housing market. While a solution is not available in every case, we take great pride in helping those we can, mainly through increasing amortization periods, partial or shared payment plans, or deferred payments. In 2012, we helped more than 5,000 families stay in their homes through our Homeowner Assistance Program. Supporting affordable homeownership initiatives Genworth Canada works closely with various agencies to support affordable housing initiatives across the country. We are proud sponsors of the Canadian Housing & Renewal Association, the national voice for the full range of affordable housing and homelessness issues and solutions. In addition, we provided support for programs such as the First Nations, Inuit and Métis urban and Rural (FIMuR) Homeownership Program in Ontario, several projects of the Attainable Housing Corporation in Calgary (AB), the Accès Condos program in Montréal (QC), the Affordable Home Ownership Assistance program in Grande Prairie (AB) and the Equity Loan program for the City of Saskatoon (SK), among others. We do this by working closely with municipalities and local housing associations to adapt our underwriting criteria to help enhance access to homeownership. Total 2012 cash contributions $ 730,794 In addition to numerous in-kind donations and countless volunteer hours, Genworth Canada’s total cash-based contributions to community causes in 2012 were $ 730,794. TenWays to Save for Your First Home Easy habits to help you achieve the dream of homeownership sooner “To save for a down payment I picked up some extra shifts at work and got a second job and that really helped.” Megan, 23, First-time homebuyer 1. Set a long-term goal: “I want to buy a home by the age of 30” or “I want to buy a home within five years of graduation from college”. 2. Determine how much you can afford: Be realistic about where you want to live and what type of home you will likely be able to afford. Consulting a financial advisor or mortgage professional early on will put you on the right path to fulfilling your goal. 3. Create a budget: Keep track of all the money that comes in and all the money that goes out. Balancing expenses against income will help you determine what, if any, adjustments you need to make to your spending habits in order to build savings. 7. Party at home: Going out for dinner, clubbing or a movie can really add up on your monthly expenses and kill your budget. Host movie nights or potluck dinners at home and see your savings grow. 8. Earn extra income: Sell unused items online through sites such as eBay, Craigslist or Kijiji; take on a second job; work part-time and summers if you’re a student. 9. Open an RRSP account early on: The Federal government’s Home Buyer’s Plan allows you to withdraw up to $20,000 from a Registered Retirement Savings Plans (RRSP) for a down payment on a first home. Consult with a financial advisor or mortgage professional to grow you investments wisely. 4. Pay yourself first: Open a separate savings account and deposit a set amount of money every month through an automatic withdrawal from your paycheque or other bank account. 10. Do your homework: Before making any big investment or purchase, do some research. Avoid spending on impulse or emotion. If it sounds too good to be true, chances are it is. 5. Live on cash: Every pay day give yourself an allowance in cash to get you through to the next pay day. If you don’t have cash handy you might think twice before buying something you don’t really need. 6. Build your savings account: Live off your day-to-day earnings and make the most of every unexpected inflow of cash. If you work overtime or receive a bonus, put that money right into your savings account. “When we purchased our home, we weren’t able to come up with 20 per cent down payment but we were able to use mortgage default insurance which allowed us to get into a home sooner with just five per cent down.” Steve, 26, First-time homebuyer To find out more about how you can achieve homeownership responsibly, visit www.genworth.ca The HOMEOWNERSHIP Company In 2012, the Ontario Aboriginal Housing Services announced the FIMuR 2012/15 Housing Program as part of the Investment in Affordable Housing for Ontario program. Genworth Canada is proud to help facilitate homeownership through FIMuR’s Assisted Homeownership Program. GENWORtH MI CA NA DA INC. 2 012 A NNuAL R EPO Rt 11 Corporate Responsibility the Genworth Canada difference Changing my life “ I share a room with my brother but I should have my own He always makes a mess But I changed my mind when I knew… you slept on the road side benches shivering in the cold sometimes wet in the rain. I’m grateful for what I have I never grumble I eat what my mother made with love I wear what I have thank you for changing my life Maybe I will try to change yours.” Excerpt from 2012 Meaning of Home Contest Winning Entry, by Chaamindri Fernando of Winnipeg, Manitoba (Grade 6) Habitat for Humanity Canada Genworth Canada is a longstanding supporter of Habitat for Humanity Canada (Habitat). Over the past decade we have donated more than $2 million to Habitat affiliates, and our employees have contributed countless hours of labour on build sites across the country. the year 2012 marked the third year of our $1 million three-year commitment to Habitat. We recently renewed this $1 million commitment over three years to further support their mission of making homeownership affordable for more Canadian families. Another meaningful program we run with Habitat is our Meaning of Home Contest. the Genworth Canada Meaning of Home Contest invites students in grades 4, 5 and 6 across Canada to submit a written essay about what home means to them, for a chance to direct $60,000 to a Habitat build of their choice in Canada. Since inception in 2007, the contest has resulted in approximately $570,000 in total grants from Genworth Canada being directed to more than 30 Habitat affiliates. With Genworth Canada donating an additional $5 per entry, every participating student helps make a difference. “ Since 2000, Genworth Canada has helped us impact the lives of more than 1,700 Canadian families. In addition to building homes and supporting Habitat affiliates across Canada, the cornerstone of our partnership is the “Meaning of Home” contest, which has been inspiring Canadian youth for the past six years. We look forward to many more years of mutually beneficial partnership.” Kevin Marshman President and CEO of Habitat for Humanity Canada 12 GENWO R tH MI C ANADA I NC . 2 012 A NN uAL R EP OR t Community initiatives Genworth Canada supports many local, national and international causes. Among these is a robust annual campaign for united Way, which in 2012 raised more than $100,000 in support of united Way programs across Canada. throughout the year, our employees led special fundraising events across the country, including a silent auction to which employees and the Company donated nearly 100 prizes, and the fi rst ever Genworth Canada offi ce Olympics. Other national causes we actively support across the country include the Juvenile Diabetes Research Foundation (JDRF), Habitat for Humanity Canada, AboutFace, Big Brothers Big Sisters and Enactus. Below are some examples of regional employee volunteer initiatives. Make-A-Wish Foundation, British Columbia the Genworth Canada Pacifi c team, like all our other regional teams, is actively involved in various charitable organizations, including local Habitat for Humanity affi liates and food banks. But one event that stood out this year and touched the heart of many was the Genworth Canada Golf tournament in support of the B.C. & Yukon Chapter of Make-A-Wish®. As a result of the team’s fundraising efforts, this event helped make one child’s dream to visit Walt Disney World with her family come true. Oakville Hospital Foundation and Wellspring Cancer Support Centre, Ontario Genworth Canada was awarded the Oakville Community Builder of the Year Award by the Oakville Chamber of Commerce and Rotary Club at the 2012 Awards for Business Excellence gala. this award recognized our many contributions to the Oakville community, including a $250,000 commitment over fi ve years to help build a fracture clinic at the Oakville Hospital, and a $150,000 commitment to the Wellspring Cancer Support Centre to help fund the expansion of their Oakville facility and creation of a Genworth Canada Money Matters Resource Centre. Juvenile Diabetes Research Foundation, Québec the Genworth Canada Québec team is actively involved with the Juvenile Diabetes Research Foundation (JDRF) as sponsors, volunteers and riders at Ride for Life fundraiser events. It all started with our Account Manager and 2012 Volunteer of the Year, Nathalie Cousineau, whose daughter was diagnosed with juvenile diabetes at the age of eight. through active participation in JDRF rides across the province, our Québec team has raised $80,000 for the cause since 2008. Hope Cottage, Nova Scotia the Genworth Canada East Coast team is actively involved in supporting a number of local causes, including Hope Cottage Soup Kitchen in Halifax, Nova Scotia. Featured in the photo below is one of our Account Managers, Michelle Murphy, who since 2011 has served thousands of meals to those less fortunate in the region. Michelle fi rst experienced Hope Cottage during a Genworth Canada Month of Service initiative. Every month of June, employees across the country are encouraged to give even more of their time to help support local charitable organizations. As a result, many, like Michelle, discover new programs and remain active throughout the year. united Way of Oakville 2012 Campaign Committee Making wishes come true “ Kayla recently returned from her trip to Walt Disney World. She had a really spectacular time! the family is incredibly grateful, as are we by all your hard work . thank you for making Kayla’s wish a reality.” Simon Uden Wish Granting Coordinator, Make-A-Wish®, BC & Yukon Volunteer of the year “ My warmest thanks to everyone at Genworth Canada for making a difference in the life of my daughter and of more than 300 ,000 children across Canada living with juvenile diabetes.” Nathalie Cousineau Account Manager and 2012 Volunteer of the Year, Genworth Canada Genworth Canada GENWORtH MI CA NA DA INC. 2 012 A NNuAL R EPO Rt 13 Genworth MI Canada Inc. chairman’s award recipients the Chairman’s Award of Excellence recognizes Genworth Canada employees who consistently work within their teams to maximize business performance through innovation, collaboration, commitment and service excellence. these individuals have contributed to creating a positive and effective work environment and fostering an inclusive culture, while managing demanding roles and challenging projects. Eugene Ji Director, Risk Operations 11 years of service Ann-Marie Reddy Regional Vice President, Prairies 4 years of service Eugene was a driving force behind our successful portfolio insurance strategy in 2012. As the leader of our portfolio insurance team, he played a key role in overseeing the program and ensuring our customer s’ needs were met, while adhering to our disciplined risk guidelines. His efforts helped solidify customer relationships and drive increased high loan-to-value mortgage volume. Ann-Marie leads a multi-provincial territory which has grown to be our second largest volume producing region. In addition to managing a strong regional sales team, she is also actively involved in the community and was instrumental in driving our Affordable Housing Program to new heights. Ann-Marie strives for excellence in everything she does and is a role model to her team and her peers. “It’s been an extremely rewarding experience to be part of a team that led one of the Company’s key initiatives in 2012. Our portfolio insurance team is a great example of how success is achieved through teamwork and innovation.” “To work for an organization with heart – that empowers its people to be the best they can be, and provides an opportunity to do something that helps thousands of families every year – is powerful.” 14 14 GENWO RtH MI C ANADA I NC. 201 2 ANNuAL RE PORt Christopher Englert Director, IT 5 years of service Chris was the technical Lead on a significant data centre move and application upgrade project – the single largest It initiative since the launch of our underwriting platform. As a result of Chris’s leadership and technical guidance, this upgrade was successfully executed and achieved a 65% improvement in our system response rate. “I was very pleased to be a part of the data centre move team. A large number of very talented and dedicated employees were involved and their commitment is what helped make this project a success.” “ Providing a rewarding environment, where employees are empowered to think outside the box, in addition to being given fair compensation, opportunities for growth, and respect for work-life balance, is what we strive for at Genworth Canada. Happy employees are more likely to lead to happy customers and that’s a win- win all around.” Brian Hurley Chairman and CEO, Genworth Canada GENWOR tH MI C ANA DA I NC . 2012 A NN uAL R EPOR t 15 Genworth MI Canada Inc. the board of directors Our Board of Directors has the mandate to supervise the management and affairs of the Company. the Board, directly and through its committees, provides direction to ensure the best interests of the Company and its shareholders are maintained. Genworth MI Canada Inc. Board members Brian Hurley Chairman Chief Executive Offi cer Sidney Horn(1)(2)(4)(5) Robert Brannock Mr. Hurley is Chairman of the Board and Chief Executive Offi cer of the Company. Previously, he was President, Genworth International, with responsibility for activities in Asia-Pacifi c, Canada and Latin America. He joined General Electric in 1981 and held various management positions including President and CEO of Genworth Financial Mortgage Insurance Company Canada from 1994 to 1996. Mr. Horn has been a director of Genworth Financial Mortgage Insurance Company Canada since 1995. He is Chair of the Compensation and Nominating Committee and is the Company’s Lead Director. Mr. Horn is a partner at Stikeman Elliott LLP and specializes in commercial, corporate and securities law. He is also a director of Astral Media Inc. Mr. Brannock is President and Chief Executive Offi cer of Genworth Financial, Europe. He was previously a director of Genworth Financial Mortgage Insurance Company Canada from 2007 to 2008. He joined the Genworth companies in 1993 and has held various senior management positions during his tenure. Robert Gillespie(1)(2)(5) Brian Kelly(1)(3)(5) Samuel Marsico(3) Mr. Gillespie has been a director of Genworth Financial Mortgage Insurance Company Canada since 1995. After holding numerous management positions with General Electric Canada Inc., he held the position of Chairman and Chief Executive Offi cer of General Electric Canada Inc. from 1992 to 2005. In the past, Mr. Gillespie was a director of Wescam Inc., Spinrite Income Fund and Husky Injection Molding Systems Ltd. Mr. Kelly has been a director of Genworth Financial Mortgage Insurance Company Canada since 2004 and Chair of its Audit Committee since 2005. Between 1972 and 1993, Mr. Kelly held various fi nancial management positions within several General Electric businesses, including Chief Financial Offi cer of two General Electric Canada businesses. He is a member of the Board of Directors of Peterborough & District Affi liate of Habitat for Humanity. Mr. Marsico is the Senior Vice-President and Chief Risk Offi cer for Genworth Financial Inc., Global Mortgage Insurance. He joined Genworth Financial Inc., Mortgage Insurance, in August 1997 as Chief Financial Offi cer and has held various senior management positions. Mr. Marsico holds a CPA designation. Mr. Marsico is Chair of the Risk, Capital and Investment Committee. Leon Roday(2) Jerome Upton(3) John Walker(5) Mr. Roday is the Senior Vice-President, General Counsel and Secretary of Genworth Financial Inc. Prior to joining Genworth Financial Inc. in 1996, he was a partner at LeBoeuf, Lamb, Greene, and McRae, a u.S. law fi rm, for 14 years. Mr. Roday is a member of the New York State and Virginia bar associations. Mr. upton is the Chief Financial Offi cer and Chief Operations Offi cer of Genworth Financial, Global Mortgage Insurance, since May 2012. Prior to his current role, Mr. upton was the Senior Vice President and Chief Operating Offi cer for Genworth Financial, International Mortgage Insurance, and before that he served as Senior Vice President and Chief Financial Offi cer, Genworth Financial International – Asia Pacifi c, Canada and Latin America. Mr. upton joined General Electric in 1998. Mr. Walker has been a director of Genworth Financial Mortgage Insurance Company Canada since 1996. He is a founding partner at Walker Sorensen LLP, specializing in advising insurance and reinsurance companies. He has served as a member of the board of directors of a number of fi nancial institutions, including tD trust Company and Concordia Life Insurance Company. Genworth Financial Mortgage Insurance Company Canada Board Members All of the people listed as being directors of Genworth MI Canada Inc. are also directors of Genworth Financial Mortgage Insurance Company Canada. In addition to such people, the following individuals are also directors of Genworth Financial Mortgage Insurance Company Canada: Heather Nicol David Gibbins Ms. Nicol joined the Board of Genworth Financial Mortgage Insurance Company Canada in June 2011. She has held several senior fi nancial management positions, including Chief Financial Offi cer for the MaRS Discovery District and Chapters Online, as well as investment banking roles including Vice-President for BMO Nesbitt Burns (previously Burns Fry Inc.). She was also a founding board member of Desjardins Credit union. Mr. Gibbins has been a director of Genworth Financial Mortgage Insurance Company Canada since 2007. He is also a director of Certifi Media . He has held senior fi nancial management positions including Managing Director, Global Head, RBC Capital Markets. (1) Audit Committee (2) Compensation and Nominating Committee (3) Risk, Capital and Investment Committee (4) Lead Director (5) Independent Genworth Financial Mortgage Insurance Company Canada’s Board of Directors has three (3) committees, an Audit Committee, comprised of the same members as the Company’s Audit Committee; a Conduct Review Committee, comprised of Brian Kelly, Jerome Upton and John Walker; and a Risk, Capital and Investment Committee, comprised of the same members as the Company’s Risk, Capital and Investment Committee. 16 GENWO RtH MI C ANADA I NC. 201 2 ANNuAL RE PORt shareholder information Genworth MI Canada Inc. 2060 Winston Park Drive, Suite 300 Oakville, Ontario L6H 5R7 tel: 905-287-5300 Fax: 905-287-5472 www.genworth.ca Exchange listing the toronto Stock Exchange: Common shares (MIC) Common shares As at December 31, 2012, there were 98,698,018 common shares outstanding. Independent auditor KPMG LLP Bay Adelaide Centre 333 Bay Street, Suite 4600 toronto, Ontario M5H 2S5 Registrar and transfer agent Canadian Stock transfer Company, Inc. 320 Bay Street, P.O. Box 1 toronto, Ontario M5H 4A6 tel: 416-643-5000 Fax: 416-643-5570 www.canstockta.com All inquiries related to address changes, elimination of multiple mailings, transfer of MIC shares, dividends or other shareholder account issues should be forwarded to the offices of Canadian Stock transfer Company. Investor relations Shareholders, security analysts and investment professionals should direct inquiries to: Samantha Cheung Vice-President, Investor Relations samantha.cheung@genworth.com Additional financial information has been filed electronically with various securities regulators in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR) and with the Office of the Superintendent of Financial Institutions (OSFI) as the primary regulator for the Company’s subsidiary, Genworth Financial Mortgage Insurance Company of Canada. the Company holds a conference call following the release of its quarterly results. these calls are archived in the Investor section of the Company’s website. Annual general meeting of shareholders Date: thursday, June 6, 2013 time: 10:30 a.m. (Et) Location: Fairmont Royal York 100 Front St West toronto, Ontario M5J 1E3 GENWOR tH MI C ANA DA I NC . 2012 A NN uAL R EPOR t Board of Directors Complaints about the Company’s internal accounting controls or auditing matters or any other concerns may be addressed directly to the Board of Directors or the Audit Committee at: Board of Directors Genworth MI Canada Inc. c/o Winsor Macdonell, Secretary 2060 Winston Park Drive, Suite 300 Oakville, Ontario L6H 5R7 tel: 905-287-5484 Corporate ombudsperson Concerns related to compliance with the law, Genworth policies or government contracting requirements may be directed to: Genworth ombudsperson 2060 Winston Park Drive, Suite 300 Oakville, Ontario L6H 5R7 tel: 905-287-5510 Canada-ombudsperson@genworth.com Disclosure documents Corporate governance, disclosure and other investor information is available online from the Investor Relations pages of the Company’s website at http://investor.genworthmicanada.ca. Cautionary statements the cautionary statements included in the Company’s Management’s Discussion and Analysis and Annual Information Form, including the “Special note regarding forward- looking statements” and the “Non-IFRS financial measures,” also apply to this Annual Report and all information and documents included herein. these documents can be found at www.sedar.com. 2013 common share dividend dates the declaration and payment of dividends and the amount thereof are at the discretion of the Board, which takes into account the Company’s financial results, capital requirements, available cash flow and other factors the Board considers relevant from time to time. Eligible dividend designation For purposes of the dividend tax credit rules contained in the Income tax Act (Canada) and any corresponding provincial or territorial tax legislation, all dividends (and deemed dividends) paid by Genworth MI Canada Inc. to Canadian residents are designated as eligible dividends. unless stated otherwise, all dividends (and deemed dividends) paid by the Company hereafter are designated as eligible dividends for the purposes of such rules. Information for shareholders outside of Canada Dividends paid to residents in countries with which Canada has bilateral tax treaties are generally subject to the 15% Canadian non-resident withholding tax. there is no Canadian tax on gains from the sale of shares (assuming ownership of less than 25%) or debt instruments of the Company owned by non-residents not carrying on business in Canada. (No government in Canada levies estate taxes or succession duties.) Credit ratings the issuer ratings of Genworth MI Canada and financial strength ratings of Genworth Financial Mortgage Insurance Company of Canada reflect each rating agency’s opinion of the Company’s financial strength, operating performance and ability to meet obligations to policyholders. Issuer rating Genworth MI Canada Inc. Financial strength S&P DBRS A–, Stable AA (low), Stable Genworth Financial Mortgage Insurance Company Canada AA–, Stable AA, Stable Senior unsecured debentures Genworth MI Canada Inc. Dividend declaration dates A–, Stable AA (low), Stable Declaration date Record date Date payable Amount per common share Regular Cash October 30, 2012 November 15, 2012 November 30, 2012 Regular Cash July 31, 2012 August 15, 2012 August 31, 2012 Regular Cash May 1, 2012 May 15, 2012 June 1, 2012 Regular Cash February 2, 2012 February 15, 2012 March 1, 2012 $0.32 $0.29 $0.29 $0.29 17 Visit the Investors section at www.genworth.ca for an interactive digital version of this annual report. Genworth MI Canada Inc. 2060 Winston Park Drive Suite 300 Oakville, Ontario L6H 5R7 905-287-5300 Fax: 905-287-5472 www.genworth.ca FSC logo 

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