"The success of the initial public offering strengthens our financial position and reaffirms the important role we play in Canada's mortgage market. We achieved solid results this quarter in a challenging economic environment which is a testament to our risk management discipline," said Brian Hurley, Chairman and Chief Executive Officer. "Over the quarter, the housing market showed positive signs including improved housing affordability due to lower interest rates and home price stabilization. As the economy recovers, our continued emphasis on high quality customer service, deep lender relationships and customized solutions puts us in a strong position to capitalize on growth opportunities."

Key Operating Metrics:

- Net premiums earned in the quarter increased 22 percent to

$153 million, compared to $125 million last year, reflecting the

amortization of the unearned premium reserves as the large 2006, 2007

and 2008 books season. Unearned premium reserves were $2.1 billion.

$1.9 billion of these reserves will be recognized over the next

5 years based on the current premium recognition curve.

- Net premiums written were $82 million, as compared to $200 million in

the same period last year. This decline resulted primarily from a

smaller high loan to value (LTV) mortgage origination market, lower

market share and a lower average premium rate that primarily resulted

from a higher proportion of refinance business.

- Net operating income of $69 million was approximately 20 percent lower

relative to the same period a year ago due to an increase in losses.

These losses were primarily the result of the seasoning of the large

2007 and 2008 insurance-in-force books which were partially offset by

higher net premiums earned.

- Job losses across Canada and home price declines in select markets

drove losses to $71 million. These factors caused an increase in the

loss ratio to 46% from 24% in the same period last year.

These losses were partially mitigated by Genworth MI Canada's loss

mitigation strategy known as the Homeownership Assistance Program

which helps borrowers through temporary financial difficulties.

Genworth MI Canada increased loss mitigation resources and saw

favourable results.

- The combined ratio of 62 percent was up from 54 percent in the first

quarter of 2009 and up from 39 percent in the same quarter a year ago,

reflecting a higher loss ratio.

- The regulatory capital ratio increased to 140 percent from 134 percent

at the end of the first quarter. This is well in excess of the

regulatory supervisory target of 120 percent.

The Company also announced that the underwriters of its initial public offering have exercised a portion of their over-allotment option to purchase 5.0 million common shares of the Company from the Company's parent company, Genworth Financial Inc., at a purchase price of $19.00 per share. Following the exercise today of the over- allotment option, Genworth Financial Inc. has a 57.5% ownership interest in Genworth MI Canada.

Investments

Investment income of $51 million included $7 million of net investment gains. On the $4.3 billion general investment portfolio, net unrealized gains were $59 million at June 30, 2009. The government guarantee fund of $551 million had a further $25 million in net unrealized gains. There were no impairments in the investment portfolio in the quarter.

Genworth MI Canada continues to proactively manage a diversified portfolio consisting primarily of fixed income government assets and high grade credits. The Company's strategy going forward is to judiciously look for opportunities to enhance the overall yield in its portfolio while maintaining prudent risk and capital management.

Shareholders' Equity

After the reorganization described in the financial statements, pro forma shareholders' equity as of June 30, 2009 was $2.5 billion, or $20.86 per share on a fully diluted basis.