A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
  • a 90% Guarantee

    “90% Guarantee” means the guarantee of the Canadian government of the benefits payable under eligible mortgage insurance policies issued by the Company, less 10% of the original principal amount of each insured loan, in the event that Genworth Mortgage Insurance Canada fails to make claim payments with respect to that loan due to its bankruptcy or insolvency. Currently the 90% Guarantee is provided under the terms of PRMHIA (as defined below).

  • Accumulated other comprehensive income

    “Accumulated other comprehensive income” or “AOCI” is a component of shareholders’ equity and reflects the unrealized gains and losses, net of taxes, related to available-for-sale assets. Unrealized gains and losses on assets classified as available-for-sale are recorded in the consolidated statement of comprehensive income and included in accumulated other comprehensive income until recognized in the consolidated statement of income.

  • Alt A mortgages

    “Alt A mortgages” means mortgages provided to self-employed borrowers with strong credit and reduced income documentation. Specific loan qualification criteria apply, including down payment documentation, assessment of income reasonableness and a 660 minimum credit score for mortgages with loan-to-value ratios exceeding 85%.

  • Available-for-sale

    “Available-for-sale” or “AFS” means investments recorded at fair value on the balance sheet, using quoted market prices, with changes in the fair value of these investments included in AOCI.

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B
  • Book value per share excluding AOCI (basic)

    “Book value per share excluding AOCI (basic)”means the per share amount of shareholders’ equity excluding AOCI to the number of basic common shares outstanding at a specified date.

  • Book value per share excluding AOCI (basic)

    “Book value per share excluding AOCI (basic)” means the per share amount of shareholders’ equity excluding AOCI to the number of basic common shares outstanding at a specified date.

  • Book value per share excluding AOCI (diluted)

    “Book value per share excluding AOCI (diluted)” means the per share amount of shareholders’ equity excluding AOCI to the number of diluted common shares outstanding at a specified date. Diluted common shares outstanding takes into account all of the outstanding dilutive securities that could potentially be exercised.

  • Book value per share including AOCI (diluted)

    “Book value per share including AOCI (diluted)” means the per share amount of shareholders’ equity including AOCI to the number of diluted common shares outstanding at a specified date. Diluted common shares outstanding takes into account all of the outstanding dilutive securities that could potentially be exercised.

  • Book value per share including AOCI asdas(basic)

    “Book value per share including AOCI asdas(basic)” means the per share amount of shareholders’ equity including AOCI to the number of basic common shares outstanding at a specified date.

  • Bove Net Premiun written

    Net operating income” means net income excluding after-tax net realized gains (losses) on sale of investments and unrealized gains (losses) on FVTPL securities. Net operating income estimates the recurring after-tax earnings from core business activities and is an indicator of core operating performance.

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C
  • Case reserves

    “Case reserves” means the expected losses associated with reported delinquent loans. Lenders report delinquent loans to the Company on a monthly basis. The Company analyzes reported delinquent files on a case-by-case basis and derives an estimate of the expected loss. Case reserve estimates incorporate the amount expected to be recovered from the ultimate sale of the residential property securing the insured mortgage.

  • Claim

    “Claim” means the amount demanded under a policy of insurance arising from the loss relating to an insured event.

  • Combined ratio

    “Combined ratio” means the sum of the loss ratio and the expense ratio. The combined ratio measures the proportion of the Company’s total cost to its premium earned and is used to assess the profitability of the Company’s insurance underwriting activities.

  • Common shares

    “Common shares” means the issued and outstanding common shares of the Company.

  • Compound annual growth rate

    “Compound annual growth rate” or “CAGR” means the annualized year-over-year growth rate of the applicable measure over a specified period of time.

  • Credit score

    “Credit score” means the lowest average credit score of all borrowers on a mortgage insurance application. Average credit scores are calculated by averaging the score obtained from both Equifax and TransUnion for each borrower on the application.

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D
  • Debt-to-capital ratio

    “Debt-to-capital ratio” means the ratio (expressed as a percentage) of debt to total capital (the sum of debt and equity).

  • Deferred policy acquisition costs

    “Deferred policy acquisition costs” means the expenses incurred in the acquisition of new business, comprised of premium taxes and other expenses that relate directly to the acquisition of new business. Policy acquisition costs are only deferred to the extent that they are in excess of the service fees and can be expected to be recovered from unearned premium reserves. Deferred policy acquisition costs are amortized into income in proportion to and over the periods in which premiums are earned.

  • Delinquency ratio

    “Delinquency ratio” means the ratio (expressed as a percentage) of the total number of delinquent loans to the total original number of policies in-force at a specified date. The delinquency ratio is an indicator of the emergence of losses on claims and the quality of the insurance portfolio and a is useful comparison to industry benchmarks and internal targets.

  • Delinquent loans

    “Delinquent loans” means loans where the borrowers have failed to make scheduled mortgage payments under the terms of the mortgage and where the cumulative amount of mortgage payments missed exceeds the scheduled payments due in a three-month period.

  • dividends paid per common share

    “dividends paid per common share” means the portion of the Company’s profits distributed to shareholders during a specified period and measures the total amount distributed by the Company to shareholders.

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E
  • Effective loan-to-value

    “Effective loan-to-value” means a Company estimate based on the estimated balance of loans insured divided by the estimated fair market value of the mortgaged property (original value plus or minus adjustments for changes in home prices for the province in which the property is located).

  • Expense ratio

    “Expense ratio” means the ratio (expressed as a percentage) of sales, underwriting and administrative expenses to premiums earned for a specified period. The expense ratio measures the operational efficiency of the Company and is a useful comparison to industry benchmarks and internal targets.

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F
  • Fair Value through Profit or Loss

    “Fair Value through Profit or Loss” or “FVTPL” means investments recorded at fair value on the statement of financial position with changes in the fair value of these investments recorded in income.

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G
  • General portfolio

    “General portfolio” or “investment portfolio” means invested assets (including cash and cash equivalents, short-term investments, bonds or other fixed income securities and equity investments) and which excluded amounts held in the government guarantee fund prior to its termination on January 1, 2013, when such amounts were incorporated in the general portfolio.

  • Government Guarantee Agreement

    “Government Guarantee Agreement” means the agreement Genworth Mortgage Insurance Canada had with the Canadian government pursuant to which the Canadian government guaranteed that lenders would receive the benefits payable under eligible mortgage insurance policies issued by Genworth Mortgage Insurance Canada, less 10% of the original principal amount of an insured loan, in the event that Genworth Mortgage Insurance Canada failed to make claim payments with respect to that loan due to its bankruptcy or insolvency. This agreement was terminated effective January 1, 2013 and was replaced by PRMHIA (as defined below).

  • Government guarantee fund

    “Government guarantee fund” means the trust account that was in place under the terms of the Government Guarantee Agreement until January 1, 2013 and which was intended to provide the Canadian federal government with a source of funds in the event it was required to make a guarantee payment.

  • Gross debt service ratio

    “Gross debt service ratio” or “GDSR” means the percentage of borrowers’ total monthly debt servicing costs, in respect of the debt in question, as a percentage of borrowers’ monthly gross income.

  • Gross premiums written

    “Gross premiums written” means gross payments received from insurance policies issued during a specified period.

  • Guarantee fund earnings

    “Guarantee fund earnings” means the net investment income from the cash and invested assets that were held in the government guarantee fund.

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H
  • High loan-to-value

    “High loan-to-value” means mortgage insurance covering an individual mortgage that typically has been underwritten independently, and which is predominantly a mortgage with a loan-to-value ratio of greater than 80% at the time the loan is originated.

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I
  • Incurred but not reported

    “Incurred but not reported” or “IBNR” reserves means the estimated losses on claims for delinquencies that have occurred prior to a specified date, but have not been reported to the Company.

  • Insurance in-force

    “Insurance in-force” means the amount of all mortgage insurance policies in effect at a specified date, based on the original principal balance of mortgages covered by such insurance policies, including any capitalized premiums. Insurance in-force measures the maximum potential total risk exposure under insurance contracts at any given time and is used to assess potential losses on claims.

  • investment yield

    “investment yield” means the net investment income before investment fees and excluding net investment gains (losses) tax affected for dividends for a period divided by the average of the beginning and ending investments book value, for such period. For quarterly results, the investment yield is the annualized net investment income using the average of beginning and ending investments book value, for such quarter.

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L
  • Loan-to-value ratio

    “Loan-to-value ratio” means the original balance of a mortgage loan divided by the original value of the mortgaged property.

  • Loss adjustment expenses

    "Loss adjustment expenses” means all costs and expenses incurred by the Company in the investigation, adjustment and settlement of claims. Loss adjustment expenses include third-party costs as well as the Company’s internal expenses, including salaries and expenses of loss management personnel and certain administrative costs.

  • Loss ratio

    “Loss ratio” means the ratio (expressed as a percentage) of the total amount of losses on claims associated with insurance policies incurred during a specified period to premiums earned during such period. The loss ratio is a key measure of underwriting profitability and the quality of the insurance portfolio and is used for comparisons to industry benchmarks and internal targets.

  • Loss reserves

    "Loss reserves” means case reserves based on delinquencies reported to the Company, an estimate for losses on claims based on delinquencies that are IBNR, supplemental loss reserves for potential adverse developments related to claim severity and loss adjustment expenses representing an estimate for the administrative costs of investigating, adjusting and settling claims. Loss reserves are discounted to take into account the time value of money.

  • Losses on claims

    “Losses on claims” means the estimated amount payable under mortgage insurance policies during a specified period. A portion of reported losses on claims represents estimates of costs of pending claims that are still open during the reporting period, as well as estimates of losses associated with claims that have yet to be reported and the cost of investigating, adjusting and settling claims.

  • Losses on claims

    “Losses on claims” “Market share” or “share” of a mortgage insurer means the insurer’s gross premiums written as a percentage of the reported gross premiums written of the Canadian mortgage insurance industry.

  • Low loan-to-value

    “Low loan-to-value” or “conventional” mortgage insurance means mortgage insurance covering an individual mortgage that is underwritten as part of a portfolio of mortgage that have a loan-to-value ratio equal to or less than 80% at the time the loan is insured.

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M
  • Market share

    “Market share” or “share” of a mortgage insurer means the insurer’s gross premiums written as a percentage of the reported gross premiums written of the Canadian mortgage insurance industry.

  • Minimum Capital Test

    “Minimum Capital Test” or “MCT” means the minimum capital test for certain federally regulated insurance companies established by OSFI (as defined herein). Under MCT, companies calculate an MCT ratio of regulatory capital available to regulatory capital required using a defined methodology prescribed by OSFI in monitoring the adequacy of a company’s capital. The MCT ratio is a key metric of the adequacy of the Company’s capital in comparison to regulatory requirements and is used for comparisons to other mortgage insurers and internal targets.

  • Multi-family

    “Multi-family” means dwellings with five or more units, including apartment buildings and long-term care facilities, but excluding individual condominium units.

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N
  • Net premiums written

    “Net premiums written” relates to the period of time prior to the implementation of PRMHIA, and means gross payments received from insurance policies issued during a specified period, net of the risk premiums payable pursuant to the Government Guarantee Agreement in respect of those policies.

  • Net underwriting income

    “Net underwriting income” means the sum of premiums earned and fees and other income, less losses and sales, underwriting and administrative expenses during a specified period.

  • New insurance written

    “New insurance written” means the original principal balance of mortgages, including any capitalized premiums, insured during a specified period. New insurance written measures the maximum potential risk exposure under insurance contracts added during a specific time period and is used to determine potential loss exposure.

  • NHA

    “NHA” means the National Housing Act (Canada).

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O
  • Operating return on equity

    “Operating return on equity” means the net operating income for a period divided by the average of the beginning and ending shareholders’ equity, excluding AOCI, for such period. For quarterly results, the operating return is the annualized operating return on equity using the average of beginning and ending shareholders’ equity, excluding AOCI, for such quarter. Operating return on equity is an indicator of return on equity from the core business activities.

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P
  • Premium tax

    “Premium tax” means a tax paid by insurance companies to provincial and territorial governments calculated as a percentage of gross premiums written.

  • PRMHIA

    “PRMHIA” means the Protection of Residential Mortgage or Hypothecary Insurance Act (Canada).

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R
  • Residential mortgage insurance market

    “Residential mortgage insurance market” means the mortgage insurance market for residential properties, including one to four unit residential properties and individual condominium units, but excluding multi-family units.

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S
  • Sales, underwriting and administrative expenses

    “Sales, underwriting and administrative expenses” means the cost of marketing and underwriting new mortgage insurance policies and other general and administrative expenses, including premium taxes, risk fee and net of the change in deferred policy acquisition costs.

  • Severity

    “Severity” means the dollar amount of losses on claims.

  • Severity on claims paid

    “Severity on claims paid” or “severity ratio" means the ratio (expressed as a percentage) of the dollar amount of paid claims during a specified period on insured loans to the original insured mortgage amount relating to such loans. The main determinants of the severity ratio are the loan-to-value (original balance of a mortgage loan divided by the original value of the mortgaged property), age of the mortgage loan, the value of the underlying property, accrued interest on the loan, expenses advanced by the insured and foreclosure expenses. Severity on claims paid ratio measures the size of the average loss on a paid claim relative to the original insured mortgage amount and is used to assess the potential loss exposure related to insurance in force and for comparison to industry benchmarks and internal targets.

  • Shareholder agreement

    “Shareholder agreement” means the shareholder agreement among Genworth Canada, Brookfield Life Assurance Company Limited (“Brookfield”), Genworth Financial, Genworth Mortgage Holdings, LLC, Genworth Mortgage Insurance Corporation, Genworth Mortgage Insurance Corporation of North Carolina, Genworth Financial International Holdings, Inc., Genworth Residential Mortgage Assurance Corporation and Sub XLVI, Inc. dated July 7, 2009, as amended.

  • Shortfall sale

    “Shortfall sale” means a sale of a property by the owner for less than the amount owing on the mortgage.

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T
  • Total debt service ratio

    “Total debt service ratio” or “TDSR” means the borrowers’ monthly debt servicing costs as a percentage of borrowers’ monthly gross income.

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U
  • Underwriter

    “Underwriter” means an individual who examines and accepts or rejects mortgage insurance risks based on the Company’s approved underwriting policies and guidelines.

  • Unearned premium reserves

    “Unearned premium reserves” or “UPR” means that portion of premiums written that has not yet been recognized as revenue. Unearned premium reserves are recognized as revenue over the policy life in accordance with the expected pattern of loss emergence as derived from actuarial analysis of historical loss development.

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W
  • Workout penetration ratio

    “Workout penetration ratio” means the ratio (expressed as a percentage) of the number of total workouts approved, including shortfall sales, over total workout opportunities. Total workout opportunities include all new and re-delinquencies reported plus total workouts approved over the same period. Workout penetration ratio measures the number of workouts performed relative to the number of existing workout opportunities and is used to assess the success of the loss mitigation Homeowner Assistance Program.

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