SEDAR Interim Financial Statements

Condensed Consolidated Interim Financial Statements (In Canadian dollars) SAGEN MI CANADA INC. Nine months ended September 30, 2025 and 2024 (Unaudited) SAGEN MI CANADA INC. Table of Contents Condensed Consolidated Interim Financial Statements: Page Number Condensed Consolidated Interim Statements of Financial Position 1 Condensed Consolidated Interim Statements of Income 2 Condensed Consolidated Interim Statements of Comprehensive Income 3 Condensed Consolidated Interim Statements of Changes in Shareholders' Equity 4 Condensed Consolidated Interim Statements of Cash Flows 6 Notes to Condensed Consolidated Interim Financial Statements: 1. Reporting entity 7 2. Basis of preparation 8 3. Changes in accounting and reporting standards 9 4. Insurance contracts 12 5. Investments 18 6. Related party transactions and balances 33 7. Share-based compensation 34 8. Debt outstanding 35 9. Capital management 37 10. Investment in associate 37 Notes September 30, 2025 December 31, 2024 (Audited) Assets Cash and cash equivalents 5 $ 722,183 $ 354,076 Short-term investments 5 23,581 4,981 Accrued investment income and other receivables 134,986 121,905 Derivative financial instruments 5 25,369 27,335 Bonds and debentures 5 5,137,276 5,268,476 Private credit loans and alternative assets 5 267,723 213,850 Preferred shares 5 320,176 491,204 Total invested assets, accrued investment income and other receivables 6,631,294 6,481,827 Income taxes recoverable 50,369 11,295 Prepaid assets 4,763 5,744 Deferred tax asset 197,575 196,197 Investment in associate 10 45,171 44,520 Property and equipment 1,338 1,549 Right-of-use assets 4,233 4,697 Intangible assets 16,172 17,378 Goodwill 11,172 11,172 Total assets $ 6,962,087 $ 6,774,379 Liabilities and Shareholders' Equity Liabilities: Accounts payable and accrued liabilities $ 176,187 $ 148,508 Income taxes payable 2,824 1,208 Insurance contract liabilities 4 2,868,465 2,624,970 Share-based compensation liabilities 7 35,612 29,567 Derivative financial instruments 5 72,326 130,752 Lease liabilities 5,990 6,571 Debt outstanding 8 922,273 921,548 Accrued net benefit liabilities under employee benefit plans 32,027 31,501 Total liabilities 4,115,704 3,894,625 Shareholders' equity: Common shares 767,600 767,600 Preferred shares 97,907 97,907 Retained earnings 1,930,467 2,013,325 Accumulated other comprehensive income (loss): Insurance finance reserve 2,761 25,316 Fair value reserve 46,891 (23,832) Other reserves 757 (562) Total shareholders' equity 2,846,383 2,879,754 Total liabilities and shareholders' equity $ 6,962,087 $ 6,774,379 See accompanying notes to the condensed consolidated interim financial statements. On behalf of the Board: (signed) "Stuart Levings" Director (signed) "Neil Parkinson" Director SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Financial Position (In thousands of Canadian dollars) (Unaudited) 1 Three months ended Nine months ended September 30, September 30, Notes 2025 2024 2025 2024 Insurance revenue 4(a) $ 207,610 $ 221,314 $ 576,895 $ 612,272 Insurance service expenses: Net losses on claims 4(b) 14,493 11,238 25,151 26,610 Insurance expenses 27,746 27,461 78,908 80,861 4(b) 42,239 38,699 104,059 107,471 Insurance service result 165,371 182,615 472,836 504,801 Insurance finance expense 31,657 26,301 79,392 66,279 Other operating expenses 10,250 11,504 31,830 29,953 123,464 144,810 361,614 408,569 Investment income: Interest 5 59,789 62,335 176,732 183,245 Dividends 5 4,370 7,22 --- 4 15,494 21,750 Loss from associate 10 (175) (116) (668) (1,231) Net realized gains from sale of investments 5 987 4,665 8,970 3,396 Net fair value gains (losses) on financial assets at Fair Value through Profit or Loss (FVTPL) 8 181 (2,742) (2,604) 32,146 Net losses on derivatives and foreign exchange 5 (12,465) (4,629) (31,235) (9,301) Change in allowance for expected credit losses 5 (2,983) (1,121) (6,466) (7,816) Total investment income 49,704 65,616 160,223 222,189 General investment expenses (2,400) (2,831) (7,291) (7,340) 47,304 62,785 152,932 214,849 Interest expense 9,859 10,543 29,284 30,090 Income before income taxes 160,909 197,052 485,262 593,328 Income taxes: Current 40,362 54,912 126,524 157,758 Deferred 1,154 (4,475) (2,454) (6,917) 41,516 50,437 124,070 150,841 Net income for the period attributable to owners of the Company $ 119,393 $ 146,615 $ 361,192 $ 442,487 See accompanying notes to the condensed consolidated interim financial statements. SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Income (In thousands of Canadian dollars) (Unaudited) 2 Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Net income $ 119,393 $ 146,615 $ 361,192 $ 442,487 Other comprehensive income: Items that may be reclassified subsequently to income: Insurance finance expense (17,011) (38,755) (30,521) (44,742) Recovery of taxes on the above item 4,440 10,115 7,966 11,678 Insurance finance result (12,571) (28,640) (22,555) (33,064) Foreign currency (losses) gains on translation — (90) 1,319 (627) Foreign currency translation — (90) 1,319 (627) Net change in fair value of bonds and debentures at FVOCI 30,976 117,793 74,238 121,669 Net losses (gains) on bonds and debentures at FVOCI realized and reclassified to income 931 4,504 (334) 13,365 Expense for taxes on the above items (8,302) (32,154) (19,772) (35,620) Debt instruments at FVOCI 23,605 90,143 54,132 99,414 Items that will not be reclassified subsequently to income: Net change in fair value of equity instruments at FVOCI 13,987 15,854 23,377 48,754 Net realized (losses) gains on equity instruments at FVOCI (1,405) 293 (727) 566 Expense for taxes on the above items (3,309) (3,982) (6,059) (13,009) Equity instruments designated as FVOCI 9,273 12,165 16,591 36,311 Total other comprehensive income for the period attributable to owners of the Company 20,307 73,578 49,487 102,034 Total comprehensive income attributable to owners of the Company $ 139,700 $ 220,193 $ 410,679 $ 544,521 See accompanying notes to the condensed consolidated interim financial statements. SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Comprehensive Income (In thousands of Canadian dollars) (Unaudited) 3 Accumulated other comprehensive income (loss) Insurance Fair Total Nine months ended Common Preferred Retained finance value Other shareholders' September 30, 2025 shares shares earnings reserve reserve reserves(3) equity Balance as at January 1, 2025 $ 767,600 $ 97,907 $ 2,013,325 $ 25,316 $ (23,832) $ (562) $ 2,879,754 Comprehensive income (loss): Net income — — 361,192 — — — 361,192 Other comprehensive (loss) income — — — (22,555) 70,723 1,319 49,487 Total comprehensive income (loss) — — 361,192 (22,555) 70,723 1,319 410,679 Total transactions recognized directly in equity: Dividends on common shares(1) — — (440,000) — — — (440,000) Dividends on preferred shares(2) — — (4,050) — — — (4,050) Total transactions recognized directly in equity — — (44 --- 4,050) — — — (444,050) Balance as at September 30, 2025 $ 767,600 $ 97,907 $ 1,930,467 $ 2,761 $ 46,891 $ 757 $ 2,846,383 (1)The Company paid dividends of $137.08, $166.45 and $127.28 per Class A Common Share in the first, second and the third quarter of 2025 respectively. (2)The Company paid dividends of $0.3375 per Series 1 Preferred Share in the first quarter, second and the third quarter of 2025. (3)Other reserves reflect accumulated unrealized gain (loss) on foreign exchange in respect of the Investment in associate. SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (In thousands of Canadian dollars, except per share amounts) (Unaudited) 4 Accumulated other comprehensive income (loss) Insurance Fair Total Year ended Common Preferred Retained finance value Other shareholders' December 31, 2024 shares shares earnings reserve reserve reserves(3) equity Balance as at January 1, 2024 $ 725,656 $ 97,907 $ 2,105,613 $ 54,768 $ (150,686) $ 65 2,833,323 Comprehensive income (loss): Net income — — 605,569 — — — 605,569 Other comprehensive (loss) income — — — (29,452) 126,854 1,916 99,318 Total comprehensive income (loss) — — 605,569 (29,452) 126,854 1,916 704,887 Total transactions recognized directly in equity: Dividends on common shares(1) — — (695,000) — — — (695,000) Dividends on preferred shares (2) — — (5,400) — — — (5,400) Issuance of common shares 20,972 — — — — — 20,972 Benefit from corporate reorganization 20,972 — — — — — 20,972 Re-measurement of employee benefit obligations — — 2,543 — — (2,543) — Total transactions recognized directly in equity 41,944 — (697,857) — — (2,543) (658,456) Balance as at December 31, 2024 $ 767,600 $ 97,907 $ 2,013,325 $ 25,316 $ (23,832) $ (562) $ 2,879,754 (1)The Company paid dividends of $98.46, $172.31, $93.54 and $320 per Class A Common Share in the first, second, third and fourth quarter of 2024 respectively. (2)The Company paid dividends of $0.3375 per Series 1 Preferred Share in the first, second, third and the fourth quarter of 2024. (3)Other reserves reflect impact of re-measurement of employee benefit obligations and unrealized gains or losses on foreign exchange in respect of the investment in associate. See accompanying notes to the condensed consolidated interim financial statements. SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (In thousands of Canadian dollars, except per share amounts) (Audited) 5 Nine months ended September 30, Notes 2025 2024 Cash generated from (used in): Operating activities: Net income $ 361,192 $ 442,487 Adjustments for non-cash items in net income: Amortization of intangible assets and depreciation of property and equipment 5,948 5,126 Income taxes 124,070 150,841 Interest income (176,732) (183,245) Dividend income (15,494) (21,750) Loss from associate 668 1,231 Net realized gains on investments 5 (8,970) (3,396) Net fair value losses (gains) on financial assets at FVTPL 2,604 (32,146) Net losses on derivatives and foreign exchange 5 31,235 9,301 Change in allowance for expected credit losses 6,466 7,816 Interest expense 29,284 30,090 Net share-based compensation expense 7 10,475 9,623 370,746 415,978 Changes in operating assets and liabilities: Accrued investment income and other receivables (2,557) 12,258 Prepaid assets 981 (343) Accounts payable and accrued liabilities 10,083 (10,327) Insurance contract liabilities 212,974 14,192 Accrued net benefit liabilitie --- s under employee benefit plans 526 681 592,753 432,439 Cash (used in) generated from operating activities: Interest received from bonds and debentures 170,403 181,695 Dividends received from preferred shares 15,494 21,750 Interest and fees paid on debt outstanding (31,726) (32,029) Income taxes paid (180,772) (387,774) Share-based compensation awards settled in cash (4,430) (6,776) Net cash generated from operating activities 561,722 209,305 Financing activities: Dividends paid (444,050) (374,050) Payment of lease liabilities (630) (675) Net cash used in financing activities (444,680) (374,725) Investing activities: Purchase of short-term investments (71,904) (212,565) Proceeds from sale or maturities of short-term investments 50,114 193,693 Purchase of bonds, private credit loans and alternative assets (1,081,278) (949,421) Proceeds from sale or maturities of bonds, private credit loans and alternative assets 1,186,050 1,019,983 Purchase of preferred shares (1,014) (11,967) Proceeds from sale of preferred shares 193,118 101,015 Purchase of intangible assets and property and equipment (4,017) (5,169) Net settlement of derivative financial instruments (20,004) (82,546) Investment in associate 10 — (7,486) Net cash generated from investing activities 251,065 45,537 Increase (decrease) in cash and cash equivalents 368,107 (119,883) Cash and cash equivalents, beginning of period 354,076 451,745 Cash and cash equivalents, end of period $ 722,183 $ 331,862 See accompanying notes to the condensed consolidated interim financial statements. SAGEN MI CANADA INC. Condensed Consolidated Interim Statements of Cash Flows (In thousands of Canadian dollars) (Unaudited) 6 1. Reporting entity: Sagen MI Canada Inc. (the "Company"), was incorporated under the Canada Business Corporations Act on May 25, 2009 and is domiciled in Canada. The share capital of the Company is comprised of Class A Common Shares and Class A Preferred Shares. Through Falcon Holding Acquisition Corporation, Brookfield Business Partners L.P. and institutional partners (collectively "Brookfield") indirectly own 100% of the Class A Common Shares of the Company. The Company's Class A Preferred Shares, Series 1 are traded publicly on the Toronto Stock Exchange under the symbol "MIC.PR.A". The Company's registered office is located at Suite 300, 2060 Winston Park Drive, Oakville, Ontario, L6H 5R7, Canada. The Company holds a 100% ownership interest in the holding companies Sagen Holdings I Company ("Holdings I"), Sagen Holdings II Company ("Holdings II"), MIC Holdings M Company, MIC Holdings N Company and Sagen International Holdings Inc ("SIHI"). Through Holdings I and Holdings II, the Company also holds an indirect 100% ownership interest in Sagen Mortgage Insurance Company Canada (the "Insurance Subsidiary"), which in turn directly owns all of the issued and outstanding shares of MIC Insurance Company Canada ("MICICC"). These condensed consolidated interim financial statements as at and for the nine months ended September 30, 2025 reflect the consolidation of the Company and these subsidiaries. In addition to its interests in consolidated subsidiaries, the Company holds a 47.50% equity- accounted interest in India Mortgage Guarantee Corporation Private Limited ("IMGC") through the subsidiary SIHI. The Insurance Subsidiary is engaged in mortgage insurance in Canada. Insurance premiums for mortgage insurance are received by the Company in full on an upfront, single premium basis. Under a --- mortgage insurance policy, a mortgage lender is insured against risk of loss for the entire unpaid loan balance, plus interest and customary selling costs and expenses related to the sale of the property upon default by a mortgage borrower. Claims paid to the lender are net of the proceeds received from sale of the underlying property. MICICC is licensed to service policies originated prior to its acquisition by the Company and does not have any policies in force as at September 30, 2025. The Insurance Subsidiary and MICICC are regulated by the Office of the Superintendent of Financial Institutions Canada ("OSFI") as well as applicable provincial financial services regulators. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 7 1. Reporting entity (continued): The Insurance Subsidiary is also subject to regulation under the Protection of Residential Mortgage or Hypothecary Insurance Act ("PRMHIA"). Under the terms of PRMHIA, the Canadian federal government guarantees the benefits payable under eligible mortgage insurance policies issued by the Insurance Subsidiary, less 10% of the original principal amount of each insured loan, in the event that the Insurance Subsidiary fails to make claim payments with respect to that loan due to its bankruptcy or insolvency. The maximum outstanding insured exposure for all private insured mortgages, including those insured by other private mortgage insurance companies, under PRMHIA is $350 billion. 2. Basis of preparation: (a) Statement of compliance: These condensed consolidated interim financial statements were prepared in accordance with International Accounting Standard ("IAS") 34: Interim financial reporting. Accordingly, the condensed consolidated interim financial statements contain selected explanatory notes to the financial statements and do not include all the disclosures required by International Financial Reporting Standards ("IFRS"). Full disclosures were included in the Company's annual consolidated financial statements as at and for the year ended December 31, 2024 and these unaudited condensed consolidated interim financial statements should be read in conjunction with those financial statements. These condensed consolidated interim financial statements were approved by the Board of Directors on November 5, 2025. (b) Use of estimates and judgments: The preparation of these condensed consolidated interim financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the condensed consolidated interim financial statements and the reported amounts of income and expenses during the period. Actual results may differ from these estimates. We have disclosed the Company's key judgments, estimates and assumptions in the Company's annual consolidated financial statements as at and for the year ended December 31, 2024. There were no significant changes in the Company's methodologies to determine these judgments, estimates and assumptions during the nine months ended September 30, 2025. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 8 2. Basis of preparation (continued): In the nine mont --- hs ended September 30, 2025, the U.S. administration has enacted a series of trade tariffs while engaging in ongoing trade negotiations with Canada and a number of other countries. The impact of U.S. trade tariffs on Canada's economy has been substantial and increasingly challenging for key sectors such as automobiles, auto parts, steel and aluminum, although major job losses have been avoided so far. Outcomes of ongoing trade negotiations remain highly uncertain. Any unfavorable outcomes could result in increased inflation, and diminish prospects for economic growth. (c) Seasonality: The mortgage insurance business is seasonal in nature. Business volumes vary each quarter. These variations are driven by the level of mortgage originations and related mortgage policies written, which typically peak in the spring and summer months. Delinquencies and losses on claims vary from quarter to quarter primarily as the result of prevailing economic conditions as well as the characteristics of the insurance in-force portfolio, such as size and age. Typically, losses on claims increase during the winter months, primarily due to an increase in new delinquencies, and decrease during the spring and summer months. 3. Changes in accounting and reporting standards: (a) Amended standards, and interpretations effective January 1, 2025: The accounting policies and methods of computation applied in the preparation of these condensed consolidated interim financial statements are the same as those described and followed in the preparation of the Company’s annual consolidated financial statements as at and for the year ended December 31, 2024, except for the adoption of amendments to IFRS effective as of January 1, 2025. The following amendments apply for the first time in 2025, but do not have an impact on the Company’s condensed consolidated interim financial statements. • Amendments to IAS 21: The effects of changes in foreign exchange rates - Lack of exchangeability. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 9 3. Changes in accounting and reporting standards (continued): (b) Future accounting standards, amendments, and interpretations: The Company has not early adopted any of the following standards, amendments or interpretations that have been issued by the International Accounting Standards Board (IASB) but are not yet effective in preparing these condensed consolidated interim financial statements: Effective January 1, 2026: • Amendments to IFRS 9 and IFRS 7: Classification and measurement of financial instruments. • Annual improvements to IFRS Accounting Standards – Volume 11 was issued on July 18, 2024. It contains amendments to five standards as a result of the IASB’s annual improvements project. Effective January 1, 2027: • IFRS 18: Presentation and disclosure in financial statements (“IFRS 18”) - IFRS 18 was issued on April 9, 2024 and will replace IAS 1: Presentation of Financial Statements (“IAS 1”). It includes requirements for all entities applying IFRS for the presentation and disclosure of information in financial statements. • IFRS 19: Subsidiaries without public accountability: Disclosures (“IFRS 19”) - IFRS 19 was issued on May 9, 2024 and specifies the disclosure requirements an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. The Company is --- currently assessing the impact of these new standards and amendments to existing standards to its financial statements. (c) Sustainability and climate-related reporting standards: On December 18, 2024, the Canadian Sustainability Standards Board (CSSB) released Canada’s inaugural sustainability disclosure standards - "CSDS 1: General requirements for disclosure of sustainability-related financial information" and proposed "CSDS 2: Climate- related disclosures". These proposed standards aim to set a new benchmark for the disclosure of sustainability-related information to serve the public interest and uphold the quality of sustainability disclosure in Canada. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 10 3. Changes in accounting and reporting standards (continued): Overall, the CSSB’s objective aligns the CSDS standards with the International Sustainability Standards Board (ISSB) IFRS S1 and S2 except for modifications relating to a proposed effective date of January 1, 2025, and certain transition reliefs. The application of CSDS 1 and 2 remains voluntary until mandated by the appropriate authorities. To become mandatory disclosures under securities legislation in Canada, the CSSB standards would need to be incorporated into a Canadian Securities Administration (“CSA”) rule. On April 23, 2025, the CSA announced that it is pausing its work on the development of a new mandatory climate-related disclosure rule. This is to support Canadian markets and issuers as they adapt to recent developments globally. In response to CSA announcement, the CSSB expressed its continued commitment to support the adoption of CSDS 1 and 2, helping Canadian entities stay globally competitive. The Company is currently assessing the implications of these requirements on its financial statements. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 11 4. Insurance contracts: (a) Insurance revenue: Insurance revenue is comprised of the following: Nine months ended September 30, 2025 2024 Amounts relating to the changes in the liability for remaining coverage: Expected insurance service expenses incurred in the period(1) $ 68,920 $ 64,487 Change in the risk adjustment for non-financial risk 68,447 69,713 Contractual service margin (CSM) recognized for services provided 381,446 416,207 Allocation of the portion of premiums that relate to the recovery of insurance acquisition cash flows 58,082 61,865 Insurance revenue $ 576,895 $ 612,272 (1)Expected insurance service expenses include future cash flows for expected losses on claims, claims handling expenses, and policy maintenance expenses. (b) Insurance service expenses: Insurance service expenses is comprised of the following: Nine months ended September 30, 2025 2024 Net losses on claims 25,151 26,610 Incurred policy maintenance expenses 20,826 18,996 Amortization of insurance acquisition cash flows 58,082 61,865 Insurance service expenses $ 104,059 $ 107,471 SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 12 4. Insurance contracts (continued): (c) Movements in carrying amounts - analysis by measurement component: Estimates of the present va --- lue of future cash flows Risk adjustment Contractual service margin Total Fair value approach All other contracts Insurance contract liabilities as at January 1, 2025 $ 548,826 $ 640,756 $ 241,459 $ 1,193,929 $ 2,624,970 Changes in the statement of income and statement of comprehensive income for the nine months ended September 30, 2025: Changes that relate to current services: CSM recognized for services provided — — (84,618) (296,828) (381,446) Change in risk adjustment for non-financial risk recognized for the risk expired — (68,447) — — (68,447) Experience adjustments (8,873) — — — (8,873) Changes that relate to future services: Contracts initially recognized in the period (501,220) 178,092 — 323,128 — Changes in estimates that adjust the CSM (14,832) (12,755) 61,625 (34,038) — Changes that relate to past services: Adjustments to liabilities for incurred claims (14,035) (35) — — (14,070) Insurance service result (538,960) 96,855 (22,993) (7,738) (472,836) Insurance finance expenses 33,058 36,175 3,314 37,367 109,914 Total changes in the statement of income and statement of comprehensive income for the nine months ended September 30, 2025 (505,902) 133,030 (19,679) 29,629 (362,922) Cash flows for the nine months ended September 30, 2025: Premiums received 726,334 — — — 726,334 Claims and other expenses paid (42,800) — — — (42,800) Insurance acquisition cash flows (77,117) — — — (77,117) Total cash flows 606,417 — — — 606,417 Insurance contract liabilities as at September 30, 2025 $ 649,341 $ 773,786 $ 221,780 $ 1,223,558 $ 2,868,465 SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 13 4. Insurance contracts (continued): Estimates of the present value of future cash flows Risk adjustment Contractual service margin Total Fair value approach All other contracts Insurance contract liabilities as at January 1, 2024 $ 510,372 $ 634,829 $ 262,337 $ 1,155,065 $ 2,562,603 Changes in the statement of income and statement of comprehensive income for the year ended December 31, 2024: Changes that relate to current services: CSM recognized for services provided — — (114,402) (469,228) (583,630) Change in risk adjustment for non-financial risk recognized for the risk expired — (93,346) — — (93,346) Experience adjustments (8,413) — — — (8,413) Changes that relate to future services: Contracts initially recognized in the period (532,645) 184,587 — 348,058 — Changes in estimates that adjust the CSM (71,997) (131,719) 88,714 115,002 — Changes that relate to past services: Adjustments to liabilities for incurred claims (17,112) (55) — — (17,167) Insurance service result (630,167) (40,533) (25,688) (6,168) (702,556) Insurance finance expenses 39,656 46,460 4,810 45,032 135,958 Total changes in the statement of income and statement of comprehensive income for the year ended December 31, 2024 (590,511) 5,927 (20,878) 38,864 (566,598) Cash flows for the year ended December 31, 2024: Premiums received 775,494 — — — 775,494 Claims and other expenses paid (55,638) — — — (55,638) Insurance acquisition cash flows (90,891) — — — (90,891) Total cash flows 628,965 — — — 628,965 Insurance contract liabilities as at December 31, 2024 $ 548,826 $ 640,756 $ 241,459 $ 1,193,929 $ 2,624,970 SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2 --- 024 (Unaudited) 14 4. Insurance contracts (continued): (d) Movements in carrying amounts - analysis by remaining coverage and incurred claims: Liability for remaining coverage Liability for incurred claims Total Excluding loss component(1) Insurance contract liabilities as at January 1, 2025 $ 2,576,525 $ 48,445 $ 2,624,970 Changes in the statement of income and statement of comprehensive income for the nine months ended September 30, 2025: Insurance revenue: Contracts under fair value approach (96,168) — (96,168) Contracts under full retrospective approach (480,727) — (480,727) Insurance service expenses: Incurred claims and other expenses — 60,047 60,047 Changes to liability for incurred claims — (14,070) (14,070) Amortization of insurance acquisition cash flows 58,082 — 58,082 Insurance service result (518,813) 45,977 (472,836) Insurance finance expenses 108,749 1,165 109,914 Total changes in the statement of income and statement of comprehensive income for the nine months ended September 30, 2025 (410,064) 47,142 (362,922) Cash flows for the nine months ended September 30, 2025: Premiums received 726,334 — 726,334 Claims and other expenses paid — (42,800) (42,800) Insurance acquisition cash flows (77,117) — (77,117) Total cash flows 649,217 (42,800) 606,417 Insurance contract liabilities as at September 30, 2025 $ 2,815,678 $ 52,787 $ 2,868,465 (1) As at September 30, 2025, there was no loss component reported. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 15 4. Insurance contracts (continued): Liability for remaining coverage Liability for incurred claims Total Excluding loss component(1) Insurance contract liabilities as at January 1, 2024 $ 2,521,008 $ 41,595 $ 2,562,603 Changes in the statement of income and statement of comprehensive income for the year ended December 31, 2024: Insurance revenue: Contracts under fair value approach (152,618) — (152,618) Contracts under full retrospective approach (695,433) — (695,433) Insurance service expenses: Incurred claims and other expenses — 78,789 78,789 Changes to liabilities for incurred claims — (17,167) (17,167) Amortization of insurance acquisition cash flows 83,873 — 83,873 Insurance service result: (764,178) 61,622 (702,556) Insurance finance expenses 135,092 866 135,958 Total changes in the statement of income and statement of comprehensive income for the year ended December 31, 2024 (629,086) 62,488 (566,598) Cash flows for the year ended December 31, 2024: Premiums received 775,494 — 775,494 Claims and other expenses paid — (55,638) (55,638) Insurance acquisition cash flows (90,891) — (90,891) Total cash flows 684,603 (55,638) 628,965 Insurance contract liabilities as at December 31, 2024 $ 2,576,525 $ 48,445 $ 2,624,970 (1) As at December 31, 2024, there was no loss component reported. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 16 4. Insurance contracts (continued): (e) Liability for incurred claims: Liability for incurred claims is compromised of the following: September 30, 2025 December 31, 2024 Case reserves $ 50,717 $ 44,933 IBNR reserves 17,144 18,587 Borrower recoveries (8,902) (9,197) Subrogation rights related to real estate (14,460) (13,772) Claim handling expenses 2,777 2,433 Discounting (1,093) (1,073) Risk --- adjustment 6,604 6,534 Liability for incurred claims $ 52,787 $ 48,445 SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 17 5. Investments: The Company's invested assets are presented in the table below: September 30, 2025 Carrying value Amortized cost Unrealized gain (loss) % total carrying value Cash and cash equivalents: Canadian federal government treasury bills $ 186,104 $ 186,105 $ (1) 2.8 Cash(1) 536,079 536,079 — 8.3 722,183 722,184 (1) 11.1 Investments carried at amortized cost: Private credit loans 184,904 184,904 — 2.9 Investments carried at fair value: Short-term investments: Canadian federal government treasury bills 23,581 23,564 17 0.4 Alternative assets(2) 82,819 81,802 1,017 1.3 Government bonds and debentures: Canadian federal government 1,244,133 1,250,853 (6,720) 19.2 Canadian provincial and municipal governments 577,794 581,221 (3,427) 8.9 Total government bonds and debentures 1,821,927 1,832,074 (10,147) 28.1 Corporate bonds and debentures: Financial 639,468 633,058 6,410 9.9 Utility 527,448 523,428 4,020 8.2 Energy 286,950 283,230 3,720 4.4 Infrastructure 136,881 137,078 (197) 2.1 All other sectors 904,716 898,130 6,586 14.0 2,495,463 2,474,924 20,539 38.6 Collateralized loan obligations 819,886 818,821 1,065 12.7 Total bonds and debentures 5,137,276 5,125,819 11,457 79.4 Preferred shares: Financial 169,213 156,040 13,173 2.6 Utility 71,934 62,193 9,741 1.1 Energy 60,395 48,307 12,088 0.9 All other sectors 18,634 14,217 4,417 0.3 320,176 280,757 39,419 4.9 Total investments $ 6,470,939 $ 6,419,030 $ 51,909 100.0 (1) As at September 30, 2025, cash includes $3,800 of collateral posted to the benefit of the Company from its derivative counterparties with a corresponding liability to return the collateral in accounts payable and accrued liabilities. (2) As at September 30, 2025, alternative assets is comprised of an investment in the Brookfield Infrastructure Debt Fund III ("BID III"), which is a vehicle for debt investments in high quality infrastructure assets. The Company has committed to an investment of $75 million USD in BID III. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 18 5. Investments (continued): December 31, 2024 Carrying value Amortized cost Unrealized gain (loss) % total carrying value Cash and cash equivalents: Canadian federal government treasury bills $ 33,535 $ 33,538 $ (3) 0.5 Cash(1) 320,541 320,541 — 5.1 354,076 354,079 (3) 5.6 Investments carried at amortized cost: Private credit loans 149,456 149,456 — 2.4 Investments carried at fair value: Short-term investments: Canadian federal government treasury bills 4,981 4,977 4 0.1 Alternative assets(2) 64,394 65,717 (1,323) 1.0 Government bonds and debentures: Canadian federal government 1,287,594 1,310,683 (23,089) 20.3 Canadian provincial and municipal governments 671,121 679,043 (7,922) 10.6 Total government bonds and debentures 1,958,715 1,989,726 (31,011) 30.9 Corporate bonds and debentures: Financial 559,211 562,903 (3,692) 8.8 Utility 497,025 503,475 (6,450) 7.9 Energy 304,358 307,374 (3,016) 4.8 Infrastructure 152,265 155,044 (2,779) 2.4 All other sectors 890,852 905,412 (14,560) 14.1 2,403,711 2,434,208 (30,497) 38.0 Collateralized loan obligations 906,050 904,142 1,908 14.3 Total bonds and --- debentures 5,268,476 5,328,076 (59,600) 83.2 Preferred shares: Financial 278,294 268,238 10,056 4.4 Utility 116,477 114,531 1,946 1.8 Energy 78,753 69,654 9,099 1.2 All other sectors 17,680 16,698 982 0.3 491,204 469,121 22,083 7.7 Total investments $ 6,332,587 $ 6,371,426 $ (38,839) 100.0 (1) Cash and cash equivalents include $3,940 of collateral posted to the benefit of the Company from its derivative counterparties with a corresponding liability to return the collateral in accounts payable and accrued liabilities. (2) As at December 31, 2024, alternative assets is comprised of an investment in the Brookfield Infrastructure Debt Fund III ("BID III"), which is a vehicle for debt investments in high quality infrastructure assets. The Company has committed to an investment of $75 million USD in BID III. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 19 5. Investments (continued): The following table provides a breakdown of financial instruments based on their classification: For the period ended and as at September 30, 2025 Carrying value (fair value) Carrying value Financial instruments mandatorily classified as FVTPL Financial instrument classified as FVOCI Financial instruments optionally designated as FVOCI Financial instruments measured at Amortized cost Total carrying amount Total Amortized Cost Unrealized gain (loss) Financial Assets: Cash and cash equivalents $ — $ 186,104 $ — $ 536,079 $ 722,183 $ 722,184 $ (1) Bonds and debentures 45,041 5,092,235 — — 5,137,276 5,125,819 11,457 Alternative assets 82,819 — — — 82,819 81,802 1,017 Private credit loans — — — 184,904 184,904 184,904 — Short-term investments — 23,581 — — 23,581 23,564 17 Preferred shares(1) 28,658 — 291,518 — — 320,176 280,757 39,419 Derivative financial instruments 25,369 — — — 25,369 — 25,369 Accrued investment income and other receivables — — — 134,986 134,986 134,986 — Total financial assets 181,887 5,301,920 291,518 855,969 6,631,294 6,554,016 77,278 Financial liabilities: Account payable and accrued liabilities — — — 176,187 176,187 176,187 — Derivative financial instruments 72,326 — — — 72,326 — 72,326 Debt outstanding — — — 922,273 922,273 922,273 — Total financial liabilities $ 72,326 $ — $ — $ 1,098,460 $ 1,170,786 $ 1,098,460 $ 72,326 (1) The Company elected to designate preferred shares without a non-viable contingency clause at FVOCI to reduce volatility in the statement of income from the fluctuation of market prices of the preferred shares. Preferred shares with a non-viable contingency clause do not qualify for the OCI election. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 20 5. Investments (continued): For the period ended and as at December 31, 2024 Carrying value (fair value) Carrying value Financial instruments mandatorily classified as FVTPL Financial instrument classified as FVOCI Financial instruments optionally designated as FVOCI Financial instruments measured at Amortized cost Total carrying amount Total Amortized Cost Unrealized gain (loss) Financial Assets: Cash and cash equivalents $ — $ 33,535 $ — $ 320,541 $ 354,076 $ 354,079 $ (3) Bonds and debentures 41,945 5,226,531 — — 5,268,476 5,328,076 (59,600) Alternative assets 64,394 — — — 64,394 65,717 (1,323) Private credit loans — — — --- 149,456 149,456 149,456 — Short-term investments — 4,981 — — 4,981 4,977 4 Preferred shares(1) 112,320 — 378,884 — 491,204 469,121 22,083 Derivative financial instruments 27,335 — — — 27,335 — 27,335 Accrued investment income and other receivables — — — 121,905 121,905 121,905 — Total financial assets 245,994 5,265,047 378,884 591,902 6,481,827 6,493,331 (11,504) Financial liabilities: Account payable and accrued liabilities — — — 148,508 148,508 148,508 — Derivative financial instruments 130,752 — — — 130,752 — 130,752 Debt outstanding — — — 921,548 921,548 921,548 — Total financial liabilities $ 130,752 $ — $ — $ 1,070,056 $ 1,200,808 $ 1,070,056 $ 130,752 (1) The Company elected to designate preferred shares without a non-viable contingency clause at FVOCI to reduce volatility in the statement of income from the fluctuation of market prices of the preferred shares. Preferred shares with a non-viable contingency clause do not qualify for the OCI election. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 21 5. Investments (continued): The carrying value of short-term investments, bonds and debentures, alternative assets and private credit loans, are shown by contractual maturity of the investment(1). September 30, December 31, 2025 2024 Terms to maturity: Federal, provincial, municipal bonds and debentures, and short-term investments: 1 year or less $ 634,353 $ 489,037 1–3 years 282,231 536,117 3–5 years 331,960 331,259 5–10 years 368,146 421,330 Over 10 years 228,818 185,953 1,845,508 1,963,696 Corporate bonds and debentures and collateralized loan obligations: 1 year or less 283,775 237,329 1–3 years 855,136 895,260 3–5 years 854,361 947,353 5–10 years 1,218,859 1,118,373 Over 10 years 103,218 111,446 3,315,349 3,309,761 Private credit loans and alternative assets: 1 year or less 17,429 9,455 1–3 years 21,010 18,642 3–5 years 73,883 37,656 5–10 years 55,269 57,845 Over 10 years 100,132 90,252 267,723 213,850 $ 5,428,580 $ 5,487,307 (1)Certain bonds and collateralized loan obligations have prepayment features that may cause actual maturities to be shorter than contractual maturities. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 22 5. Investments (continued): Investments denominated in foreign currencies: September 30, December 31, 2025 2024 Investments denominated in U.S. dollars: Collateralized loan obligations $ 819,886 $ 906,050 Emerging market bonds 412,277 462,331 Global bonds 290,685 288,017 U.S. high-yield bonds 345,536 302,512 Alternative assets 82,819 64,394 Private credit loans 139,073 116,612 2,090,276 2,139,916 Investment denominated in Euro: Private credit loans 39,015 23,424 Investment denominated in Pound Sterling (GBP): Private credit loans 6,816 9,420 $ 2,136,107 $ 2,172,760 Expected credit loss assessment: The following table reconciles the opening and closing allowance for expected credit losses for debt securities at FVOCI and amortized cost by stage. Reconciling items include the following: • Transfers between stages, which are presumed to occur before any corresponding remeasurement of the allowance. • Purchases and originations, which reflect the allowance related to assets newly recognized during the period. • Derecognitions and maturities, which reflect the a --- llowance related to assets derecognized during the period. • Remeasurements, which comprise the impact of changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions and partial repayments; changes in the measurement following a transfer between stages; and unwinding of the time value discount due to the passage of time. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 23 5. Investments (continued): During the Nine months ended September 30, 2025 and 2024, there were no significant changes to the models used to estimate expected credit losses Allowance for credit losses Nine months ended September 30, 2025 Performing Impaired Stage 1 Stage 2 Stage 3 Total Balance at beginning of period $ 9,948 $ 3,424 $ — $ 13,372 Transfer into (out of) Stage 1 (424) — — (424) Transfer into (out of) Stage 2 — 424 — 424 Purchase and originations 5,991 17 — 6,008 Derecognitions and maturities (3,196) (1,784) — (4,980) Remeasurements 1,294 3,706 438 5,438 Balance at end of period $ 13,613 $ 5,787 $ 438 $ 19,838 Allowance for credit losses For the year ended December 31, 2024 Performing Impaired Stage 1 Stage 2 Stage 3 Total Balance at beginning of period $ 6,535 $ 2,190 $ — $ 8,725 Transfer into (out of) Stage 1 (13) — — (13) Transfer into (out of) Stage 2 — 13 — 13 Purchase and originations 5,962 93 — 6,055 Derecognitions and maturities (3,169) (1,841) — (5,010) Remeasurements 633 2,969 1,856 5,458 Balance at end of period $ 9,948 $ 3,424 $ 1,856 $ 15,228 Derivative financial instruments: Derivative financial instruments are used by the Company for economic hedging purposes and for the purpose of modifying the risk profile of the Company's investment portfolio, subject to exposure limits specified within the Company's investment policy guidelines, which have been approved by the Board of Directors. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 24 5. Investments (continued): The Company uses derivative financial instruments in the form of foreign currency forwards and cross currency interest rate swaps to mitigate foreign currency risk associated with bonds denominated in U.S. dollars, Euro and GBP. Foreign currency forwards and cross currency interest rate swaps are contractual obligations to exchange one currency for another at a predetermined future date. The Company uses both fixed-for-floating and floating-for-fixed interest rate swaps in conjunction with management of interest rate risk related to its fixed income investments. The fixed-for- floating interest rate swaps are derivative financial instruments in which the Company and its counterparty agree to exchange interest rate cash flows based on a specified notional amount from a fixed rate to a floating rate. Floating-for-fixed interest rate swaps exchange interest rate cash flows based on a specified notional amount from a floating rate to a fixed rate. The following table shows the fair value and notional amounts of the derivatives by terms of maturity, in Canadian dollars: Notional amount September 30, Derivative Derivative Net 1 year 1–3 3–5 Over 5 2025 asset liability fair value or less years years years Total Fair value through profit or loss: Foreign currency forwards $ 839 $ (40,652) $ (39,813) 1, --- 943,749 65,882 81,823 46,850 2,138,304 Cross currency interest rate swaps 3,735 (6,492) (2,757) 35,815 36,001 — 98,488 170,304 Interest rate swaps 20,795 (25,182) (4,387) — 4,000,000 1,000,000 — 5,000,000 Total $ 25,369 $ (72,326) $ (46,957) 1,979,564 4,101,883 1,081,823 145,338 7,308,608 Notional amount December 31 Derivative Derivative Net 1 year 1–3 3–5 Over 5 2024 asset liability fair value or less years years years Total Fair value through profit or loss: Foreign currency forwards $ 901 $ (93,333) $ (92,432) 1,873,804 61,247 57,799 102,390 2,095,240 Cross currency interest rate swaps 3,927 (11,846) (7,919) 40,745 64,514 — 98,488 203,747 Interest rate swaps 22,507 (25,573) (3,066) 4,000,000 4,000,000 500,000 — 8,500,000 Total $ 27,335 $ (130,752) $ (103,417) 5,914,549 4,125,761 557,799 200,878 10,798,987 SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 25 5. Investments (continued): Net gains (losses) on derivatives and foreign exchange in the statements of income consist of the following amounts: Nine months ended September 30 2025 2024 Unrealized foreign exchange (losses) gains on bonds and debentures denominated in U.S. dollars $ (119,092) $ 15,737 Unrealized gains (losses) on foreign currency forward and cross currency interest rate swap contracts(1) 36,864 (54,966) Realized foreign exchange gains 50,420 30,027 Net losses on foreign exchange (31,808) (9,202) Gains (losses) on interest rate swap contracts 573 (99) Net losses on derivatives and foreign exchange $ (31,235) $ (9,301) (1)Includes $1,865 of net realized interest rate swap income related to contractual cash flows (September 30, 2024 - $588 net interest rate swap expense). Securities lending: The Company participates in a securities lending program through an intermediary that is a financial institution for the purpose of generating fee income. Non-cash collateral, in the form of U.S. or Canadian government securities by the intermediary, which is equal to at least 105% of the fair value of the loaned securities, is retained by the Company until the underlying securities have been returned to the Company. The fair value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the fair value of the underlying securities fluctuates. While in the possession of counterparties, the loaned securities may be resold or re-pledged by such counterparties. The intermediary, which is an AA-rated financial institution, indemnifies the Company against any shortfalls in collateral. In addition to earning fee income under the securities lending program, the Company continues to earn all interest, dividends and other income generated by the loaned securities while the securities are in the possession of counterparties. These transactions are conducted under terms that are usual and customary to security lending activities, as well as requirements determined by exchanges where a financial institution acts as an intermediary. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 26 5. Investments (continued): The Company loaned the following investments under its securities lending program: September 30, December 31, 2025 2024 Cash equivalents $ 40,166 $ 10,709 Bonds and debentures 356,720 414,491 --- Preferred shares 468 13,811 $ 397,354 $ 439,011 As at September 30, 2025, the Company has accepted eligible securities as collateral with a fair value of $420,491 (December 31, 2024 - $463,677). Fair value measurements: Fair value measurements are based on a three-level fair value hierarchy based on inputs used in estimating the fair value of financial instruments. The hierarchy of inputs is summarized below: • Level 1 – inputs used to value the financial instruments are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 – inputs used to value the financial instruments are other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and • Level 3 – inputs used to value the financial instruments are not based on observable market data. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 27 5. Investments (continued): The following tables set forth the classification of financial instruments carried at fair value based on the fair value hierarchy. Financial instruments carried at amortized cost have been excluded from these tables. September 30, 2025 Level 1 Level 2 Level 3 Total Bonds and debentures $ — $ 5,137,276 $ — $ 5,137,276 Alternative assets — — 82,819 82,819 Preferred shares 320,176 — — 320,176 Short-term investments 23,581 — — 23,581 Derivative financial instruments assets — 25,369 — 25,369 Derivative financial instruments liabilities — (72,326) — (72,326) $ 343,757 $ 5,090,319 $ 82,819 $ 5,516,895 December 31, 2024 Level 1 Level 2 Level 3 Total Bonds and debentures $ — $ 5,268,476 $ — $ 5,268,476 Alternative assets — — 64,394 64,394 Preferred shares 491,204 — — 491,204 Short-term investments 4,981 — — 4,981 Derivative financial instruments assets — 27,335 — 27,335 Derivative financial instruments liabilities — (130,752) — (130,752) $ 496,185 $ 5,165,059 $ 64,394 $ 5,725,638 The Company reviews the fair value hierarchy classifications each reporting period. Changes in the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the nature of the Company's invested assets, the Company does not typically have any transfers between the levels within the fair value hierarchy, and there were no such transfers during the nine months ended September 30, 2025, and the year ended December 31, 2024. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 28 5. Investments (continued): The following table presents a reconciliation of fair value measurements of Level 3 financial assets as at September 30, 2025 and December 31, 2024: Alternative assets September 30, 2025 December 31, 2024 Balance, beginning of the period $ 64,394 $ 48,327 Total gains (losses) recognized in net income 2,147 (1,219) Purchases 18,784 22,935 Paydowns (554) (10,201) Foreign exchange rate differences (1,952) 4,552 Balance, end of the period $ 82,819 $ 64,394 Valuation of Level 2 financial instruments: Fair values of bonds and debentures, including CLOs, are obtained primarily from industry- standard pricing services and third-party broker --- s utilizing market observable inputs. Fair value is assessed by analyzing available market information through processes such as benchmark curves, benchmarking of like securities and quotes from market participants. Observable information is compiled and integrates relevant credit information, interest rates of the underlying investment, perceived market movements and sector news. Market indicators, industry and economic events are also monitored as triggers to obtain additional data. The primary inputs used in determining fair value of bonds and debentures are interest rate curves and credit spreads. Derivative financial instruments are non-exchange traded foreign currency forwards, cross currency interest rate swaps, and interest rate swaps. The value of these derivative financial instruments is determined using an income approach in which future cash flows expected from the contracts are discounted to reflect the current value of the derivative financial instruments. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 29 5. Investments (continued): The following table describes the primary inputs used in valuing the Company's derivative financial instruments: Derivative financial instrument Primary inputs Foreign currency forwards and cross currency interest rate swaps Interest rate yield curves and foreign currency exchange rates Interest rate swaps Interest rate yield curves Valuation of Level 3 financial instruments: Level 3 financial assets are alternative assets comprising an investment in BID III (the "Fund"), a vehicle for debt investments in high quality infrastructure assets. 90% of Sagen’s investment in the Fund consists of secured fixed rate notes and 10% consists of a residual equity interest in the form of certificates. The fair value of Sagen’s investment is based on the amortized cost of the notes and the fair value of the equity certificates, which is determined based on the Fund’s performance against a target return. The target return is based on market transactions of the Fund and is an unobservable input. Given the equity certificates make up a small portion of the overall Fund, changes in the target return do not have a significant impact on the fair value of the Fund. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 30 5. Investments (continued): The following table presents the interest income, dividend income, net realized gains (losses) on investments and interest expense for each class of financial instrument by measurement category as recognized in the condensed consolidated interim statements of income. Nine months ended September 30, 2025 Interest income Dividend income Net realized gains (losses) on investments Interest expense Financial instruments at Amortized cost: Cash and cash equivalents $ 9,847 $ — $ — $ — Private credit loans 9,129 — 198 — Debt and lease liabilities — — — (29,284) 18,976 — 198 (29,284) Financial instruments at FVOCI: Cash and cash equivalents 2,295 — (1) — Short term investments 355 — 6 — Bonds and debentures 152,310 — 2,761 — Preferred shares — 13,307 — — 154,960 13,307 2,766 — Financial instruments at FVTPL: Alternative assets 820 — — — Bonds and debentures 1,775 — (73) — Preferred shares — 2,187 6,079 — 2,595 2,187 6,006 — Miscellane --- ous income: Securities lending 201 — — — Income (expense) for the period ended September 30, 2025 $ 176,732 $ 15,494 $ 8,970 $ (29,284) SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 31 5. Investments (continued): Nine months ended September 30, 2024 Interest income Dividend income Net realized gains (losses) on investments Interest expense Financial instruments at Amortized cost: Cash and cash equivalents $ 8,087 $ — $ — $ — Private credit loans 8,542 — 631 — Debt and lease liabilities — — — (30,090) 16,629 — 631 (30,090) Financial instruments at FVOCI: Cash and cash equivalents 2,421 — 4 — Short term investments 1,807 — 13 — Bonds and debentures 159,160 — (7,600) — Preferred shares — 15,592 — — 163,388 15,592 (7,583) — Financial instruments at FVTPL: Alternative Assets 1,189 — 21 — Private credit Loans 332 — 2 — Bonds and debentures 1,433 — — — Preferred shares — 6,158 10,325 — 2,954 6,158 10,348 — Miscellaneous income: Securities Lending 274 — — — Income (expense) for the period ended September 30, 2024 $ 183,245 $ 21,750 $ 3,396 $ (30,090) SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 32 6. Related party transactions and balances: During the nine months ended September 30, 2025 and 2024, the Company has in place service relationships with Brookfield subsidiaries and affiliates Brookfield Asset Management Private Institutional Capital Adviser US LLC, Brookfield Asset Management Private Institutional Capital Advisor (Canada) L.P, Oaktree Capital Management L.P., Brookfield Public Securities Group LLC and Brookfield Asset Management Credit and Insurance Solutions Advisor LLC to provide investment management services for certain investment portfolios. Additionally, RPS Real Property Solutions Inc. provides property valuation services used by the Company for underwriting purposes and Brookfield Asset Management Private Institutional Capital Adviser (Private Equity), L.P. provides IT consulting services. All of these arrangements are undertaken at market terms and conditions. The Company also pays director fees and other related amounts otherwise owing to directors directly to Brookfield. The Company incurred aggregate charges of $1,498 and $4,437 for the three months ended and nine months ended September 30, 2025 (September 30, 2024 - $1,388 and $3,852 for the three and nine months ended) for services provided by Brookfield entities and director fees. The net balance owing for the services as at September 30, 2025 is $1,128 (December 31, 2024 - $1,000). The Company has in place a derivatives agreement and has executed a cross-currency swap with Falcon Holdings Acquisition Corporation. All outstanding balances with related parties to the derivatives agreement are unsecured and settled within nine months of the reporting date. Details of the cross-currency interest rate swap are disclosed in the table below: Notional amount September 30, Derivative Derivative Net 1 year 1–3 3–5 Over 5 2025 asset liability fair value or less years years years Total Fair value through profit or loss: Cross currency interest rate swap(1) $ — $ (2,641) $ (2,641) — — — 49,244 49,244 Notional amount December 31, Derivative Derivative Net 1 year 1–3 3–5 Over 5 2024 asset liability fair value or less years years --- years Total Fair value through profit or loss: Cross currency interest rate swap(1) $ — $ (2,714) $ (2,714) — — — 49,244 49,244 (1)At September 30, 2025, the derivative-related interest payable to Falcon Holdings Acquisition Corporation is $19 (December 31, 2024 - Interest receivable - $8). SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 33 7. Share-based compensation: The Company provides long-term incentive plans for the granting of stock options ("Options"), restricted share units ("RSUs"), performance share units ("PSUs"), and executive deferred share units (“EDSUs”). The Company has reserved 100,000 Class A Common Shares of its issued and authorized shares for issuance under these long-term incentive plans. As at September 30, 2025, the Company has 88,956 (December 31, 2024 - 90,596) Class A Common Shares remaining that are available for distribution. The following tables summarizes information about the Company's share-based compensation plans: Number of share- based awards outstanding as at September 30, 2025 Fair value of share-based awards as at September 30, 2025 Share-based compensation expense for three months ended September 30, 2025 Share-based compensation expense for nine months ended September 30, 2025 Options 11,044 $ 28,742 $ 1,900 $ 5,874 RSUs 2,423 9,102 909 2,484 PSUs 1,355 5,090 432 1,661 EDSUs 927 3,485 148 456 15,749 $ 46,419 $ 3,389 $ 10,475 Number of share- based awards outstanding as at September 30, 2024 Fair value of share-based awards as at September 30, 2024 Share-based compensation expense for three months ended September 30, 2024 Share-based compensation expense for nine months ended September 30, 2024 Options 9,404 $ 21,130 $ 2,004 $ 5,374 RSUs 2,193 8,191 1,015 2,400 PSUs 1,225 4,575 624 1,411 EDSUs 753 2,814 263 438 13,575 $ 36,710 $ 3,906 $ 9,623 Total share-based compensation liabilities as of September 30, 2025 were $ 35,612 (December 31, 2024 - $29,567). SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 34 8. Debt outstanding: Summary of debt outstanding: Issuance Maturity date Term (years) Coupon rate Coupon payment Principal amount Net carrying value September 30, December 31, 2025 2024 Debentures: Series 4 March 1, 2027 7 2.955% March 1 and September 1 282,000 281,615 281,418 Series 5 March 5, 2031 10 3.261% March 5 and September 5 294,000 292,790 292,640 Series 7 May 19, 2028 5 5.909% May 19 and November 19 200,000 199,068 198,830 Hybrid Notes: Series 6(1) March 24, 2081 60 4.950% March 24 and September 24 150,000 148,800 148,660 $ 926,000 $ 922,273 $ 921,548 (1)The Series 6 notes initially have a coupon of 4.95% per annum. On March 24, 2031, and on every fifth anniversary thereafter, the coupon rate will reset to a rate per annum equal to the five-year Government of Canada Yield plus a spread of 3.566% for the period from March 2031 to March 2051, and 4.316% for the period from March 2051 until maturity. The Series 6 notes may be redeemed at the option of the Company on or after March 24, 2026 at a redemption price between 101% to 104% of the principal amount if redeemed prior to March 24, 2030, with the redemption price declining for each year that the notes remain outstanding, and 100% of the principal amount if redeemed on or after March 24 --- , 2030, plus accrued and unpaid interest. The Series 6 notes are subordinated to all indebtedness and obligations of the Company and are subject to automatic conversion into preferred shares of the Company in the event of bankruptcy or insolvency. The debentures and the hybrid notes are accounted for at amortized cost, which equals their carrying value. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 35 8. Debt outstanding (continued): As at September 30, 2025 and December 31, 2024, the Company was in compliance with all debt covenants. Changes in the Company's borrowings are presented in the table below: Debt outstanding Interest payable(1) Balance as at January 1, 2025 $ 921,548 $ 9,426 Net amortization of premium and capitalized borrowing costs 725 — Interest expense — 27,796 Interest paid — (31,254) Balance as at September 30, 2025 $ 922,273 $ 5,968 (1)Accrued interest payable is recorded in accounts payable and accrued liabilities in the condensed consolidated interim statements of financial position. Debt outstanding Interest payable(1) Balance at January 1, 2024 $ 920,614 $ 8,748 Net amortization of premium and capitalized borrowing costs 934 — Proceeds from borrowings under credit facility 22,000 — Repayments of borrowings under credit facility (22,000) — Interest expense — 37,950 Interest paid — (37,272) Balance as at December 31, 2024 $ 921,548 $ 9,426 (1)Accrued interest payable is recorded in accounts payable and accrued liabilities in the condensed consolidated interim statements of financial position. Credit Facilities: As at September 30, 2025, the Company had an undrawn unsecured syndicated revolving credit facility of $300 million (the "Revolving Facility"). The Revolving Facility is described below: Revolving Facility Amount Up to $300 million Maturity Date September 30, 2027 Tenure 5 years Draw Period 5 years Status Active SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 36 8. Debt outstanding (continued): The Revolving Facility includes an accordion feature that permits the Company to request that individual commitments with respect to the credit facility be increased by an aggregate amount of up to $100 million. The Company pays standby fees based on the committed and undrawn principal amount of the credit facilities, which is recorded in interest expense in the condensed consolidated interim statements of income. The credit facilities include customary representations, warranties, covenants, terms and conditions for transactions of this type. As at September 30, 2025, there was no amount outstanding under the Revolving Facility and all covenants under the credit facilities were fully met. During the nine months ended September 30, 2024, the Company borrowed and subsequently repaid $22,000 under the Revolving Facility and fully repaid it on September 27, 2024. Debt outstanding is classified as Level 2 in the fair value hierarchy. Fair value of debt outstanding was $911,714 at September 30, 2025 as compared to its carrying value of $922,273 (December 31, 2024 - $891,893 as compared to its carrying value of $921,548). 9. Capital management: The Company is subject to the Mortgage Insurer Capital Adequacy Test ("MICAT"). The OSFI supervisory MICAT target ratio and the min --- imum MICAT ratio under the Government Guarantee legislation for 2025 is 150% (December 31, 2024 - 150%) and the Company's internal target ratio under the MICAT is 157% (December 31, 2024 - 157%). The Company has determined that it is in compliance with the MICAT as at September 30, 2025 and December 31, 2024. 10. Investment in associate: The Company holds a 47.50% interest in IMGC as at September 30, 2025. IMGC offers mortgage guarantees against borrower defaults on housing loans to mortgage lenders in India. As the only mortgage guarantee company in India, IMGC offers products that help lenders expand their businesses and enter new and underserved markets by providing them with an added layer of protection through a mortgage guarantee. The investment in this entity has been classified as an investment in associate and is accounted for using the equity method. The Company recognized losses from associate of $175 and $668 for the three and nine months ended September 30, 2025 (losses from associate of $116 and $1,231 for the three and nine months ended September 30, 2024). SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 37 10. Investment in associate (continued): On February 5, 2024, the Company paid $7,486 to acquire an additional 7.30% of common shares in the capital of IMGC from its existing shareholders, increasing its ownership interest from 40.20% to 47.50%. The following table summarizes the changes in Investment in associate during the nine months ended September 30, 2025: Investment in associate Balance as at January 1, 2025 $ 44,520 Loss from associate recognized in income (668) Foreign currency gain on translation 1,319 Balance as at September 30, 2025 $ 45,171 Investment in associate Balance as at January 1, 2024 $ 39,335 Loss from associate recognized in income (1,674) Foreign currency loss on translation (627) Additional investment, including capitalized expenses 7,486 Balance as at December 31, 2024 $ 44,520 As at September 30, 2025 and as at December 31, 2024, there were no events or changes in circumstances that indicate that the carrying value of the investment in associate is not recoverable. SAGEN MI CANADA INC. Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) 38