Mr. Philip Mayers reports

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

Sagen MI Canada Inc. has had second quarter 2023 net income of $112-million.

On Jan. 1, 2023, the company adopted international financial reporting standard 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 second quarter 2023 unaudited condensed consolidated interim financial statements and management's discussion and analysis.

Second quarter 2023 financial results

Net income of $112-million was $21-million lower than in the same quarter in the prior year, primarily due to lower net insurance service result, partially offset by higher investment income.

Preferred dividends

The company also announced today that its board of directors had declared a dividend of 33.75 cents per Class A preferred share, Series 1, payable on Sept. 30, 2023, to holders of record at the close of business on Sept. 15, 2023.

Sagen MI designates any and all dividends paid or deemed for Canadian federal, provincial or territorial income tax purposes to be paid as eligible dividends, unless indicated otherwise in respect of dividends paid subsequent to this notification, and hereby notifies all recipients of such dividends of this designation.

Detailed operating results

For more information on the company's operating results, please refer to the company's management's discussion and analysis as posted on SEDAR+.

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

About Sagen MI Canada Inc.

Sagen MI, 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 June 30, 2023, the company had $6.8-billion in total assets and $2.8-billion in shareholders equity.