NAB in proposed LMI tender with US insurer

The move comes as the US insurance giant seeks to step up its local presence and shake up the Australian LMI market

NAB in proposed LMI tender with US insurer


By Ryan Smith

US mortgage insurance giant Arch Capital Group is ramping up its Australian presence in a bid to win more business in the country’s lenders' mortgage insurance (LMI) market.

The Australian Financial Review reports that Arch is considering a request for proposal by National Australia Bank to provide its LMI. Currently, the bank’s LMI is provided by Genworth Mortgage Insurance Australia for broker-originated loans and QBE Insurance for bank-originated loans.

According to the AFR, the process is still “in the preliminary stages”.

Arch already has a presence in Australia, supporting Westpac’s LMI operations by reinsuring riskier loans, the AFR reported. And now the US giant is said to have been granted a local license and plans to ramp up its business in the country.

There’s one big customer the US company won’t be able to touch for a few years, though. Genworth managed to lock down its relationship with Commonwealth Bank of Australia last year, renewing its contract for a further three years, according to the AFR.

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