Sagen MI Canada Inc. Receives New Credit Rating Upgrade, S&P Global Ratings Raised The Company's Rating To 'A-' from 'BBB+' On Low Structural Subordination

TORONTO, March 2, 2026 /CNW/ - Sagen MI Canada Inc. (the "Company") (TSX: MIC.PR.A) is pleased to share that S&P Global Ratings (the "S&P") has upgraded the Company's credit rating to A- from BBB+, reflecting the S&P's view that potential regulatory restrictions on payments from its operating company are low. S&P further emphasizes its stable outlook on the Company and its expectation that the Company will maintain its strong competitive position, with a sizable market share, and excellent capitalization supported by solid operating earnings.

Consequently, S&P raised its issue ratings on the Company's outstanding senior debt, junior subordinated debt, and preference shares issued by the Company as noted in the table below:

	Debentures			Hybrid Notes Series 6	Preferred Shares
	Series 4	Series 5	Series 7
Previous S&P rating	BBB+, Stable	BBB+, Stable	BBB+, Stable	BBB-, Stable	P-2 (low) Stable
New S&P Rating	A-, Stable	A-, Stable	A-, Stable	BBB, Stable	P-2 Stable

S&P's release issued March 2, 2026, explains the rationale for these changes as, "We raised the ratings on Sagen MI Canada Inc. to reflect our view of the low potential regulatory restrictions to payment distributions from Sagen's operating insurance entities to its [nonoperating holding company]."

The Company is also rated by DBRS Ratings Limited ("DBRS"). The DBRS issuer credit rating on the Company is A (high) and remains unchanged.

About Sagen MI Canada Inc.

Sagen MI Canada Inc., operating through its wholly owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as Sagen^TM), is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31, 2025, the Company had $6.9 billion total assets and $2.8 billion shareholders' equity. Find out more at www.sagen.ca.

Non-GAAP and Other Financial Measures Disclosure

To supplement the Company's consolidated financial statements, which are prepared in accordance with IFRS, the Company uses certain non-GAAP financial measures to analyze performance. The Company believes that non-GAAP financial measures, supplementary financial measures and non-GAAP ratios provide meaningful information regarding its performance and may be useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. These measures and ratios may not have standardized meanings and may not be comparable to similar measures presented by other companies.

See the Non-GAAP and other financial measures section at the end of the MD&A for a reconciliation of (i) net insurance revenue to the comparable financial measure of insurance revenue, (ii) net insurance service result to the comparable financial measure of insurance service result, (iii) operating investment income and interest and dividend income, net of investment expenses to the comparable financial measure of total investment income; (iv) net operating income to the comparable financial measure of net income; and (v) pre-tax equivalent operating investment income to the comparable financial measure of total investment income. Definitions of key non-GAAP and other financial measures and explanations of why these measures are useful to investors and management can be found in the Company's Non-GAAP and other financial measures glossary, in the Non-GAAP and other financial measures section at the end of the MD&A. The MD&A, along with the Company's most recent financial statements, are available on the Company's website and on SEDAR+ at www.sedarplus.com.

Special Note Regarding Forward-Looking Statements

Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws ("forwardlooking statements"). When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to the Company's expectations regarding the Company's future operating and financial results and the Company's current and future credit, issuer strength and other ratings.

 The forward-looking statements contained herein are based on certain factors and assumptions, certain of which appear proximate to the applicable forward-looking statements contained herein. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Actual results or developments may differ materially from those contemplated by the forward-looking statements.

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: the continued availability of the Canadian government's guarantee of private mortgage insurance on terms satisfactory to the Company; the Company's expectations regarding its revenues, expenses and operations; the Company's plans to implement its strategy and operate its business; the Company's expectations regarding the compensation of directors and officers; the Company's anticipated cash needs and its estimates regarding its capital expenditures, capital requirements, reserves and its needs for additional financing; the Company's plans for and timing of expansion of service and products; the Company's ability to accurately assess and manage risks associated with the policies that are written; the Company's ability to accurately manage market, interest and credit risks; the Company's ability to maintain ratings, which may be affected by the ratings of its sole Class A common shareholder, Brookfield Business Partners L.P., together with certain of its affiliates and institutional partners ("Brookfield"); interest rate, credit spreads, foreign exchange rates and equity price fluctuations; a decrease in the volume of high loan-to-value mortgage originations; the cyclical nature of the mortgage insurance industry; changes in government regulations and laws mandating mortgage insurance or impacting the competitive landscape of the mortgage insurance industry; the acceptance by the Company's lenders of new technologies and products; the Company's ability to attract lenders and develop and maintain lender relationships; the Company's competitive position and its expectations regarding competition from other providers of mortgage insurance in Canada; anticipated trends and challenges in the Company's business and the markets in which it operates; changes in the global or Canadian economies; the impact of any tariffs and retaliatory tariffs or other protectionist measures on the economy, a decline in the Company's regulatory capital or an increase in its regulatory capital requirements; increased market volatility, political risk, regulatory compliance and costs associated with international investing; geopolitical risk, including deterioration in international trade or consumer confidence due to geopolitical instability resulting from armed conflicts or acts of terrorism or war; environmental concerns, including climate change; changes in the value of investment securities held by the Company; loss of members of the Company's senior management team; potential legal, tax and regulatory investigations and actions; negative publicity; operational risks, including the failure of the Company's computer systems or potential cyber threats; reduction of business or adverse selection of loans with key lenders; the Company's reliance on its subsidiaries; litigation; insufficient insurance coverage; and potential conflicts of interest between the Company and its sole Class A common shareholder, Brookfield.

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 (the "AIF") dated March 19, 2025. 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 (including the Company's AIF) and can be found on the System for Electronic Data Analysis and Retrieval + ("SEDAR+") website at www.sedarplus.com. The forward-looking statements contained in the MD&A represent the Company's views only as of the date hereof. Forward-looking statements contained in the MD&A 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, and are presented for the purpose of assisting the Company's security holders 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.

Contact Information:

Investors – Amit Chalam, 905-287-5393 [email protected]
Media – Jim Spitali, 905-287-5307 [email protected]

Sagen MI Canada and Sagen are trademarks owned by Sagen MI Canada Inc.

SOURCE Sagen Mortgage Insurance Company Canada