Leading mortgage insurer Genworth has put their strong half yearly result down to the robust Australian housing market.
Due to the strength in the housing market, Genworth has experienced a lower volume of loan arrears converting to claim, coupled with a lower average claim amount. The loss ratio for the first half of 2014 decreased by 23 percentage points when compared with the loss ratio for the first half of 2013.
The company reported a net profit of $133 million for the six months to June 2014 – representing a whopping 41% increase on the half yearly result to June 2013.
“I am very pleased with the performance of the business in the first half of 2014 and our first result as an ASX listed company. The performance is marginally ahead of our expectations and positions us well for the remainder of the 2014 financial year," Ellie Comerford, Managing Director and Chief Executive Officer of Genworth said.
Based on these positive half yearly results, Genworth now expect to achieve a full year net profit position of between $231 million and $250 million. The full year loss ratio is expected to be between 25% - 30%.