Preferred shareholders to receive quarterly dividend
Sagen MI Canada Inc. reported first quarter 2025 net income of $131 million, a year-over-year decrease of $14 million, or approximately 9.7%, citing lower investment income as the primary factor behind the decline.
The company noted that the decrease in investment income was partially offset by an improvement in its net insurance service result.
Despite the drop in quarterly earnings, Sagen’s Board of Directors declared a quarterly dividend of $0.3375 per Class A preferred share, Series 1. The dividend will be payable on June 30, 2025, to shareholders of record at the close of business on June 13, 2025. All dividends paid are designated as “eligible dividends” for Canadian tax purposes.
The announcement follows the company’s release of its full fourth-quarter 2024 financials, which showed solid year-over-year growth. For the quarter ending December 2024, Sagen reported revenue of $272.68 million, up 7.59% from the same period a year earlier. Net income during that period stood at $163.08 million, representing an 8.27% increase.
Diluted earnings per share rose 7.67% to $159.68, while operating income grew 7.07% to $224.94 million. The company also reported a 129.76% increase in net cash change, totalling $22.21 million.
Last month, Morningstar DBRS confirmed Sagen’s financial strength rating at AA and its issuer rating at A (high) with all trends stable. The agency cited Sagen’s consistently strong financial results, robust capital levels, and resilient risk management framework as key factors supporting the ratings.
Despite concerns over economic headwinds, including a potential rise in mortgage defaults linked to US trade tensions, Morningstar DBRS viewed the company’s liquidity and capital reserves as sufficient to absorb potential shocks. The confirmation also reflects the company’s ability to maintain steady performance amid evolving regulatory and market conditions.
Sagen MI Canada Inc., through its wholly owned subsidiary Sagen Mortgage Insurance Company Canada, offers mortgage default insurance to Canadian lenders.
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