...The impact of potential tariffs and macroeconomic uncertainty on the Canadian economy will likely mean higher insured losses for Sagen MI Canada Inc. and its operating subsidiary (collectively, Sagen). There is currently much uncertainty regarding tariffs between the U.S. and Canada, particularly the size, duration, and potential for negotiations to avoid them altogether. S&P Global Ratings' economic assumptions for tariffs are that they will be smaller than the figures initially announced by the U.S. administration, to account for possibilities that some or all the tariffs may be negotiated down. Regardless, the impact of tariffs, even to a lesser degree, and the economic uncertainty that they bring will hamper business conditions and likely lead to strains on the Canadian labor market, especially for provinces and industries that are more directly affected or targeted by the tariffs. Our current expectation is that the magnitude of the impact will lead to higher loss ratios for Sagen...
