Powered by MOMENTUM MEDIA
subscribe to our newsletter
Genworth loses major bank contract

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.

Advertisement
Advertisement

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.

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 embattled wealth giant has confirmed that its statutory net profit fell by $820 million in 2018, due to costs associated with the royal ...

The non-major bank’s net profit after tax has dropped by 4.7 per cent, coinciding with weaker home lending performance. ...

Regulatory sandboxes may not be the answer for regulating cross-border fintechs, a new report has suggested. ...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The aftermath of the final royal commission report

Is enough being done to ensure responsible lending?