However, the insurer is warning of the risks of near-future uncertainty
Sagen MI Canada Inc. has reported stronger second-quarter net income and net operating income on an annual basis.
During Q2 2021, the insurer saw net income of $152 million, which was $54 million higher year over 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 stood at $156 million, which was $55 million higher annually. This surge was driven mainly by “lower losses on claims and higher premiums earned, partially offset by higher expenses and higher interest expense on long term debt,” Sagen said.
However, Sagen stressed that macroeconomic conditions will continue to significantly influence its mortgage business.
“Specifically, losses on claims are primarily impacted by unemployment rates, home prices and housing activity. Given the rapidly evolving nature and uncertainty related to the COVID-19 pandemic and its impact on the economy, there are a wide range of potential economic outcomes in 2021,” Sagen said.
Read more: Sagen MI Canada reports Q1 results
Late last week, the company also announced that its board of directors had declared a dividend of $0.3375 per Class A preferred share, Series 1. This will be payable on September 30, to holders of record at the close of business on September 15.
Currently the largest private sector residential mortgage insurer in Canada, Sagen had $7.7 billion in total assets and $3.4 billion in shareholders’ equity as of June 30, 2021.
