Powered by MOMENTUM MEDIA
subscribe to our newsletter

Genworth loses major bank contract

LMI provider Genworth has conceded it will feel the “full effect” of a major bank’s decision to terminate its agreement with the group.

Westpac has provided 90 days' written notice that the bank is terminating its agreement for the provision of lender's mortgage insurance with Genworth Financial Mortgage Insurance Pty Ltd, a subsidiary of Genworth Mortgage Insurance Australia Ltd.

The major bank has advised Genworth that it has completed a strategic review of all of its lenders' LMI arrangements for all new residential mortgage loans with a loan to value ratio (LVR) of greater than 90 per cent.

The LMI business underwritten under this contract represented 9.5 per cent of Genworth’s’s new insurance written in 2014 and accounted for 14.0 per cent of gross written premium in 2014.

While the loss of the Westpac contract does not currently change the net earned premium (NEP) or full-year loss ratio guidance provided by Genworth on February 11, the group admitted that the “full effect” on NEP will likely be felt in the 2016 financial year and beyond.

Advertisement
Advertisement

PROMOTED CONTENT


On February 11, Genworth posted an underlying NPAT for 2013/2014 of $279.4 million, up 26.5 per cent on the previous corresponding period.

 

Genworth loses major bank contract
mortgagebusiness

Latest News

The average mortgage interest rate paid by households is expected to continue to decline “for a while yet”, according to the central ban...

Following the release of the Retirement Income Review, two reverse mortgage lenders have emphasised how these products could provide Austral...

The industry body has signed on customer-owned financial institution Newcastle Permanent as a partner. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Responsible Lending - what could lie ahead for lenders brokers and borrowers?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.