CBA renews LMI deal

Genworth will continue to be the exclusive mortgage insurer for CBA after the bank yesterday renewed its contract with the LMI group for another three years.

Genworth Mortgage Insurance Australia yesterday announced that it has renewed its Supply and Service Contract with CBA for the provision of lenders mortgage insurance with effect from 1 January 2017.

The contract represented 43 per cent of gross written premium in 1H16.

“We look forward to continuing our long-standing partnership with CBA under the new agreement,” Genworth CEO Georgette Nicholas said.

“Our value proposition to customers remains strong and we continue to invest in our relationship with CBA through technology, policy and services that provide a better borrower experience,” she said.

“Importantly for our shareholders, we renewed our agreement with CBA on terms that we expect will secure appropriate returns.”

Ms Nicholas said that as the LMI provider navigates cyclical changes in the market it remains focused on maintaining its risk management discipline.

“At the same time, we are committed to enhancing the current business model so that it meets the capital and risk management needs of our lender customers.”

CBA’s executive general manager, home buying, Dan Huggins, said Genworth plays an important role in helping Australia’s biggest mortgage provider meet the home buying needs of its customers.

The contact will see Genworth provide LMI to CBA for a term of three years through to 31 December 2019.

[Related: Chinese group acquires mortgage insurer]

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