National Australian Bank (NAB) has chosen to extend its supply and service contract with Genworth Mortgage Insurance Australia for the provision of lenders’ mortgage insurance (LMI) within its broker business.
The announcement was released on the Australian Stock Exchange (ASX) on Wednesday (20 September) with the expiry date of the contract now extended to 20 November 2018.
Genworth’s contract with NAB represented 10% of its gross written premium in 2016.
Georgette Nicholas, Genworth’s CEO and managing director, said she looked forward to continuing the long-standing partnership with NAB under the extended agreement.
“We are focused on delivering risk and capital management solutions for our customers and we’re delighted that we have been able to continue to be the LMI provider for NAB’s broker business.
“Genworth remains committed to supporting Australians [to help them] realise their dream of homeownership. Our focus continues to be on the provision of capital and risk management solutions to our lender customers, being a strong risk management partner and using our data and analytics to provide insights to this changing market.”
Analysts at S&P Global Ratings said that the announcement would have no effect on its ratings and negative outlook for Genworth as these hinged instead on the company’s competitive position and earnings profile.
“We are pleased to continue our long-term partnership with Genworth to provide lenders mortgage insurance for NAB home loan customers who come through a broker,” a NAB spokesperson told Australian Broker
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