Sagen MI Canada Inc. reported third-quarter net profit of $119 million, down from $147 million a year earlier as lower investment returns and insurance revenue offset strong growth in new mortgage insurance underwritten.
Underwritten premiums jumped to C$305 million from C$231 million a year earlier, reflecting stronger demand for transactional mortgage insurance as housing activity rebounded following several rate cuts from the Bank of Canada. Portfolio insurance remains modest at $5 million.
Insurance income fell to $208 million from $221 million and total investment income fell to $47 million from $63 million due to lower reinvestment yields and net derivatives and foreign exchange losses.
Despite weak earnings, credit performance remained strong, with delinquency rates rising to just 0.19% from 0.17% a year ago.
Sagen’s Mortgage Insurer Capital Adequacy Test (MICAT) ratio increased to 191%, well above OSFI’s regulatory minimum of 150%. Sagan said the company remains well-positioned to weather near-term economic headwinds, supported by a resilient insurance portfolio and strong capital base.
Federal housing measures seen as long-term boost
The company also pointed to recent changes in federal housing policy as a potential boost for private mortgage insurers like Sagan.
In its 2025 budget tabled this week, Ottawa proposed increasing the cap on privately insured mortgage exposures under the Residential Mortgage or Mortgage Insurance Protection Act (PRMHIA) from $350 billion to $500 billion. Sagen noted that this move, coupled with a series of previous PRMHIA regulatory changes, could expand the pool of eligible borrowers and support future insurance volumes.
These changes include:
- Allow first-time homebuyers to amortize their new homes over 30 years;
- Increase the price limit for high-ratio insured mortgages to $1.5 million;
- Refinancing secondary suites with insurance limits increased to $2 million; and
- Eliminates the stress test requirement for borrowers to switch lenders through portfolio insurance.
Visited 1 time, visited 1 time today
Mortgage insurance company quarterly earnings Sagen Canada
Last modified: November 6, 2025
