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Press release from CNW Group

Genworth MI Canada Inc. Announces Preliminary Second Quarter 2011 Results

Wednesday, July 20, 2011

Genworth MI Canada Inc. Announces Preliminary Second Quarter 2011 Results16:39 EDT Wednesday, July 20, 2011Net Operating Income Expected to be Between $80 Million and $82 MillionTORONTO, July 20, 2011 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) today announced preliminary results for the second quarter of 2011, concurrent with the announcement by Genworth Financial, Inc.  (the Company's majority shareholder) of its preliminary financial results. The Company expects to report net income in the range of $81 million to $83 million or $0.77 to $0.79 per diluted common share and net operating income of $80 million to $82 million or $0.76 to $0.78 per diluted common share. This compares to net income of $85 million, or $0.72 per diluted common share, in the second quarter of 2010 and net income of $80 million, or $0.76 per diluted common share, in the first quarter of 2011.The Company will provide a more detailed update in its second quarter earnings release after the market closes on July 28, 2011 and during its earnings call on July 29, 2011 at 10:30 a.m. ET.  The Company's complete earnings release and second quarter financial supplement will be available through the Company's website, http://investor.genworthmicanada.ca. Investors are encouraged to review all of these materials.Non-IFRS Financial Measures To supplement its financial statements, the Company uses select non-IFRS financial measures. Non-IFRS measures used by the Company to analyze performance include underwriting ratios such as loss ratio, expense ratio and combined ratio, as well as other performance measures such as net operating income and return on net operating income. The Company believes that these non-IFRS financial measures provide meaningful supplemental information regarding its performance and may be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-IFRS measures do not have standardized meanings and are unlikely to be comparable to any similar measure presented by other companies. These measures are defined in the Company's glossary, which is posted on the investor section of the Company's website (http://investor.genworthmicanada.ca). To access the glossary, click on the "Glossary of Terms" link under "Investor Resources" subsection on the left navigation bar.   A reconciliation of non-IFRS financial measures to the most recently comparable measures calculated in accordance with IFRS can be found in the Management Discussion and Analysis filed with the Company's most recent financial statements, which are available on the Company's website and on SEDAR at www.sedar.com.Cautionary Note Regarding Forward-Looking StatementsAs the Company has not completed its quarterly financial close process and its analysis of the second quarter of 2011 is not yet complete, the expected results presented in this press release are estimates and are preliminary in nature and, therefore, may change.This press release includes certain forward-looking statements.  These forward-looking statements include, but are not limited to, the Company's plans, objectives, expectations and intentions, and other statements contained in this release that are not historical facts.  These statements may be identified by their use of words such as "expects", "anticipates", "contemplates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning. These statements are based on the Company's current beliefs or expectations, including the Company's assumptions, beliefs and expectations regarding its financial results, future capital requirements, market conditions and its ability to obtain regulatory approvals. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the Company's control.The Company's actual results and performance could differ materially from those anticipated in these forward-looking statements as a result of both known and unknown risks, including risks related to changes in government regulation; competition from other providers of mortgage insurance in Canada; a downturn in the global or Canadian economies; a decline in the Company's regulatory capital or an increase in its regulatory capital requirements; changes to laws mandating mortgage insurance; a decrease in the volume of high loan-to-value mortgage originations; ineffective or unsuccessfully implemented risk management standards by the Company; a downgrade or potential downgrade in the Company's financial strength ratings; interest rate fluctuations; the loss of members of the Company's senior management team; potential legal, tax and regulatory investigations and actions; the failure of the Company's computer systems; and potential conflicts of interest between the Company and its majority shareholder, Genworth Financial, Inc.This is not an exhaustive list of the factors that may affect any of the Company's forward-looking statements. Some of these and other factors are discussed in more detail in the Company's annual information form ("AIF") dated March 18, 2011. Investors and others should carefully consider these and other factors and not place undue reliance on the forward-looking statements. Further information regarding these and other risk factors is included in the Company's public filings with provincial and territorial securities regulatory authorities and can be found on the SEDAR website at www.sedar.com, including the AIF. The forward-looking statements contained in this press release represent the Company's views only as of the date hereof. Forward-looking statements contained in this press release are based on management's current plans, estimates, projections, beliefs and opinions and the assumptions related to these plans, estimates, projections, beliefs and opinions may change; therefore they are presented for the purpose of assisting the Company's securityholders in understanding management's current views regarding those future outcomes and may not be appropriate for other purposes. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.About Genworth MI Canada Inc.Genworth MI Canada Inc., through its subsidiary, Genworth Financial Mortgage Insurance Company Canada, has been the leading Canadian private residential mortgage insurer since 1995.  Known as Genworth Financial Canada, "The Homeownership Company," it provides default mortgage insurance to Canadian residential mortgage lenders that enables low down payment borrowers to own a home more affordably and stay in their homes during difficult financial times.  Genworth Financial Canada combines technological and service excellence with risk management expertise to deliver innovation to the mortgage marketplace.  As of March 31, 2011, Genworth Financial Canada had $5.4 billion in total assets and $2.6 billion in shareholders' equity. Based in Oakville, Ontario, Genworth Financial Canada employs approximately 265 people across Canada. Additional information about Genworth MI Canada Inc. is available at www.genworth.ca.For further information: Investors - Samantha Cheung, 905-287-5482   samantha.cheung@genworth.com Media - Anita DiPaolo-Booth, 905-287-5394 anita.dipaolobooth@genworth.com