Mr. Philip Mayers reports

SAGEN MI CANADA INC. REPORTS FIRST QUARTER 2023 RESULTS AND DECLARES PREFERRED SHARE DIVIDEND

Sagen MI Canada Inc. had first quarter 2023 net income of $101-million.

On Jan. 1, 2023, the company adopted IFRS 17: Insurance contracts and IFRS 9: Financial instruments for the first time. IFRS 17 and IFRS 9 were applied retrospectively and comparative information was restated. While the company's business model and related risks are not affected by these changes in accounting policies, the transition to IFRS 17 will have a material impact on the company's reported financial results.

For more details, refer to the company's first quarter 2023 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A).

First quarter 2023 financial results

Net income of $101-million was $4-million lower than the same quarter in the prior year, primarily due to lower insurance service result, partially offset by higher investment income.

Preferred dividends

The company's board of directors had declared a dividend of 33.75 cents per Class A preferred share, Series 1, payable on June 30, 2023, to holders of record at the close of business on June 15, 2023.

Detailed operating results

For more information on the company's operating results, please refer to the company's MD&A as posted on SEDAR.

This news release as well as the company's first quarter 2023 consolidated financial statements and MD&A are also posted on the investor section of the company's website. Investors are encouraged to review all of these materials.

About Sagen MI Canada Inc.

Sagen MI Canada, operating through its wholly owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as Sagen), is the largest private-sector residential mortgage insurer in Canada. The company provides mortgage default insurance to Canadian residential mortgage lenders, making home ownership 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 March 31, 2023, the company had $6.7-billion total assets and $2.8-billion of shareholders' equity.