Sagen MI Canada Inc. Reports Second Quarter 2021 Results and Declares Preferred Share Dividend

TORONTO, Aug. 5, 2021 /CNW/ - Sagen MI Canada Inc. (the "Company") (TSX: MIC.PR.A) today reported second quarter 2021 net income of $152 million and net operating income of $156 million.

Second Quarter 2021 Financial Results

Net income of $152 million was $54 million higher than the same quarter in the prior year, primarily due to lower losses on claims and higher premiums earned, partially offset by higher expenses, higher interest expense on long term debt and lower investment income.

Net operating income of $156 million was $55 million higher than the same quarter in the prior year, primarily due to lower losses on claims and higher premiums earned, partially offset by higher expenses and higher interest expense on long term debt.

Preferred Dividends

The Company also announced today that its Board of Directors had declared a dividend of $0.3375 per Class A preferred share, Series 1, payable on September 30^th, 2021, to holders of record at the close of business on September 15^th, 2021.

Detailed Operating Results

For more information on the Company's operating results, please refer to the Company's Management Discussion and Analysis ("MD&A") as posted on SEDAR and available at www.sedar.com.

This Press Release, as well as the Company's second quarter 2021 consolidated Financial Statements and MD&A 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 Sagen MI Canada Inc. 

Sagen MI Canada Inc., operating through its wholly owned subsidiary, Sagen 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, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at June 30^th, 2021, the Company had $7.7 billion total assets and $3.4 billion shareholders' equity. Find out more at www.sagen.ca.

Contact Information:
Investors – Aaron Williams, 905-287-5504 aaron.williams@sagen.ca
Media – Susan Carter, 905-287-5520  susan.carter@sagen.ca

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

Definitions of key non-IFRS financial measures and explanations of why these measures are useful to investors and management can be found in the Company's "Glossary", in the "Non-IFRS financial measures" section at the end of the MD&A for the three and six months ended June 30^th, 2021. The MD&A, along with the Company's most recent financial statements, are available on the Company's website and on SEDAR at www.sedar.com.

Caution regarding forward-looking information and statements

Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and 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, the timing for payment of the dividends on the Class A preferred shares, Series 1.

Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

SOURCE Sagen MI Canada Inc.