LMI provider Genworth announced this week that it has extended its contract with NAB for the provision of mortgage insurance to the major bank’s third-party business.
In a trading update, Genworth said that the term of the contract has been extended for one year to 20 November 2018. The group noted that the extended contract does not change the guidance, provided that Gross Written Premium (GWP) will be down by 10 to 15 per cent in 2017.
The NAB broker business contract represented 10 per cent of GWP in 2016.
“We look forward to continuing to build on our long-standing partnership with NAB under this extended agreement,” Genworth CEO and managing director Georgette Nicholas said. “We are focused on delivering risk and capital management solutions for our customers and we’re delighted that we have been able to continue to be the LMI provider for NAB’s broker business.
“Genworth remains committed to supporting Australians realise their dream of home ownership. Our focus continues to be on the provision of capital and risk management solutions to our lender customers, being a strong risk management partner and using our data and analytics to provide insights to this changing market.”
Genworth lost a lucrative contract with Macquarie Bank earlier in the year.
CBA, Australia’s biggest mortgage provider, renewed its deal with the LMI provider in November 2016, extending it by three years.
Last week, Genworth has had its A3 credit rating downgraded by Moody’s, with the agency citing “high and rising level of tail risks” as the catalyst.
[Related: Genworth profit falls by 35%]