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Mortgage insurer announces $250m loss

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Australian Broker | 10 Dec 2013, 07:58 AM Agree 0
The chairman of a mortgage insurer has stepped down after announcing a 'deeply disappointing' financial result.
  • Well | 10 Dec 2013, 09:08 AM Agree 0
    Based on the ever increasing premiums in the Australian market (& the double dipping), they'll make it up in no-time.
  • Coast Broker | 10 Dec 2013, 09:21 AM Agree 0
    This will be used as an excuse to increase their premiums
  • James | 10 Dec 2013, 09:34 AM Agree 0
    Lmi is already ridiculous in Australia. Prepare for further premium increases. Time for some actual competition?
  • Keith of the West | 10 Dec 2013, 09:57 AM Agree 0
    If I recall our CEO of MFAA has been pushing the Canadian model of funding for years as an alternative to the current securitisation model?

    I shall say no more...
  • Positivity | 10 Dec 2013, 10:01 AM Agree 0
    I was mislead by that headline suggesting $250m was lost in 'mortgage insurance'.

    Surely that was not intentional..
  • mac | 10 Dec 2013, 10:25 AM Agree 0
    Something has to be done about the escalating premiums. They have lost all touch with reality. Median house prices are nudging $700K in Sydney and yet any deal over 90% and over $500K and the LMI is absolutely punitive. like it is major high risk...in Sydney metro within 20Km of city it is below entry level prices. Come on.

    Worked on a deal yesterday. $580,000 purchase price with max LVR 97%. LMI was a staggering $24,007 and the base LVR was as a result was 92.74%!!!! What a joke! 4.26% gross premium WTF is going on.

    Please of please bring in some competition. and don't give me the they should just save more argument either. With no concessions or grants and the ridiculous LMI premiums and stamp duty they need more than 10% to just get it.

    Consumers are getting ripped by a cosy duopoly that has no interest in competing against each other.
  • Papery | 10 Dec 2013, 10:28 AM Agree 0
    Like Positivity, I thought it might have actually pertained to the Ozzie Market.

    Be nice to hear some reaction from the Lender Partners & what they intend to do to protect themselves (& our clients)from contingency risk of the O/S parent.....
  • Tim H | 10 Dec 2013, 10:57 AM Agree 0
    The headline grabbed my attention also making me think QBE LMI was a loss making business which is so far from the truth. Good headline writing Australian Broker.
    Looking at the content further it is stated QBE made a loss of $250mill but this is after a writedown of goodwill of $600mill, a one-time restructure cost of $150mill and a further intangibles writedown of $330mill.
    Guess they will say times are tough so we will have to increase our revenue and justify an LMI increase. I was applauding QBE recently for their better LMI rates than Genworth. I hope my applause was not premature and they were not just waiting to use this loss announcement as a reason to up their premiums to match or heaven forbid exceed Genworth !!!
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