Sagen MI Canada Inc. Reports First Quarter 2026 Results and Declares Preferred Share Dividend

• The most recent release (April 30, 2026) reports First Quarter 2026 results with net income of $118 million.
• Net income decreased by $13 million year-over-year compared to Q1 2025.
• Primary drivers for the decline include lower insurance service results and higher insurance finance expenses, partially offset by increased investment income.
• The Board declared a preferred share dividend of $0.3375 per Class A preferred share, Series 1, payable June 30, 2026.
• Regulatory update effective March 27, 2026: Amendments to the Insurance Companies Act removed notice and voting rights for Class A Preferred Shareholders, though dividend and redemption rights remain unchanged.

• The earnings decline of $13 million is consistent with the downward trend observed in Q3 2025 ($27 million decline) and stabilizes after a flat Q4 2025 result.
• The credit rating upgrade from S&P (March 2, 2026) to 'A-' provides a strong fundamental backdrop regarding solvency and capital structure, mitigating immediate financial distress risks.
• However, the continued YoY decline in net income suggests operational headwinds that are not yet resolved, making this news negative relative to growth expectations.
• The removal of voting rights for preferred shareholders is a structural change that may negatively impact the perceived value of that specific class but does not materially alter common equity governance directly.
• Given the trend was established in Q3 and Q4 2025, this release confirms existing momentum rather than introducing a new shock; therefore, it is categorized as Routine - Negative.

• Sagen MI Canada Inc. is the largest private-sector residential mortgage insurer in Canada.
• The company operates primarily through its insurance subsidiaries providing mortgage default insurance.
• As of December 31, 2025, the company reported $6.9 billion in total assets and $2.8 billion in shareholders' equity.
• The business model relies on insurance premiums and investment income generated from reserves.