Private mortgage insurer held the line on earnings as investment income softened
Sagen MI Canada Inc. closed out 2025 with essentially flat quarterly profit. The Oakville‑based insurer reported fourth quarter 2025 net income of $162 million, just $0.6 million below the same period a year earlier, as lower investment income and higher insurance finance expense were offset by stronger insurance service results.
“The Company also announced today that its Board of Directors had declared a dividend of $0.3375 per Class A preferred share, Series 1, payable on March 31, 2026, to holders of record at the close of business on March 13, 2026,” Sagen said.
The preferred payout level matched recent quarters, continuing a pattern of stable distributions even as quarterly earnings moved around.
“Sagen MI Canada Inc. designates any and all dividends paid or deemed for Canadian federal, provincial or territorial income tax purposes to be paid as ‘eligible dividends’, unless indicated otherwise,” the company said, reiterating its standard tax treatment for investors.
The latest figures followed a year of mixed results. In the second quarter of 2025, Sagen reported net income of $111 million, down $40 million year over year, citing a weaker net insurance service result and reduced investment income.
Third quarter 2025 profit fell 18% to $119 million amid lower insurance revenue and investment income, according to results reported in November.
Sagen, formerly Genworth Canada, operates as the country’s largest private sector residential mortgage insurer, providing mortgage default coverage to lenders and helping extend homeownership to first‑time buyers and newcomers.
The company, majority‑owned by Brookfield Business Partners, emphasizes “customer service excellence, innovative processing technology, and a robust risk management framework” as core differentiators. As of December 31, 2025, it reported $6.9 billion in total assets and $2.8 billion in shareholders’ equity.
For lenders and brokers, the fourth‑quarter result suggest that while earnings growth slowed, capital strength and dividend continuity at Canada’s leading private mortgage insurer remained intact – a key consideration as the industry navigates another year of elevated rates and evolving credit risk.
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