Sagen MI Canada Inc. posted third-quarter net income of $119 million, down from $147 million a year earlier, as lower investment returns and insurance revenue offset strong growth in new mortgage insurance written.
Premiums written jumped to $305 million from $231 million in the same period last year, reflecting stronger demand for transactional mortgage insurance as housing activity rebounded following several Bank of Canada rate cuts. Portfolio insurance volumes remained modest at $5 million.
Insurance revenue declined to $208 million from $221 million, while total investment income fell to $47 million from $63 million amid lower reinvestment yields and net losses on derivatives and foreign exchange.
Despite weaker earnings, credit performance remained strong, with the delinquency ratio rising to just 0.19% from 0.17% a year ago.
Sagen’s Mortgage Insurer Capital Adequacy Test (MICAT) ratio improved to 191%, well above OSFI’s 150% supervisory minimum. Sagen said it remains well positioned to manage through near-term economic headwinds, supported by a resilient insured portfolio and a strong capital base.
Federal housing measures seen as longer-term tailwind
The company also pointed to recent federal housing policy changes as potential tailwinds for private mortgage insurers like Sagen.
In Budget 2025 tabled this week, Ottawa proposed increasing the cap on private insured mortgage exposure under the Protection of Residential Mortgage or Hypothecary Insurance Act (PRMHIA) to $500 billion, up from $350 billion. Sagen noted that this move, along with a series of earlier PRMHIA regulation changes, could expand the pool of eligible borrowers and support future insurance volumes.
Those changes included:
- Allowing 30-year amortizations for first-time buyers purchasing new homes;
- Raising the home-price limit for high-ratio insured mortgages to $1.5 million;
- Enabling refinances for secondary suites, with the insurance limit increased to $2 million; and
- Removing the stress test requirement for borrowers switching lenders with portfolio insurance.
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mortgage insurers quarterly earnings Sagen Canada
Last modified: November 6, 2025