​LMI profits show balance heavily tipped

by 12 Dec 2013
One LMI provider has recorded a substantial underwriting profit this year, while another was only just in the black.

APRA's report General Insurance Institution-Level Statistics, released yesterday, found QBE LMI recorded an underwriting profit of $114m in the last financial year, while Genworth’s was just $3m.

This was mostly due to high claims recorded by Genworth in the past year. The LMI provider collected $444m in premium income in 2013, but was faced with $261m in claims. It also had $100m in underwriting expenses.

QBE LMI collected $234m in premium income, but recorded just $61m in claims and underwriting expenses of $27m.

Genworth, however, received $257 in investment income, while QBE LMI received $142m, resulting in Genworth recording a slightly higher net profit for the financial year than QBE LMI ($172m compared to $154m).

The results come after it was revealed QBE will record a net loss of US$250m this year due to financial strife in its North American business.  

COMMENTS

  • by Positivity 12/12/2013 10:38:51 AM

    Just some of the costs of a mispriced property market..