Defaults dent Genworth
Home loan defaults lifted across much of this year, with the level of claims paid by Genworth Mortgage Insurance Australia one monitor of what must be a wider industry trend.Claims paid by Glenworth increased to A$72.2 million over the September 2017 half year, up from $44.8 million over the March 2017 half, and up from $41.1 milion in the September 2016 half.The underwriting result for the mortgage insurer fell 15 per cent to A$83.3 million while net profit fell 35 per cent to $88.7 million.Management said "net claims incurred decreased 2.4 per cent," which included an $8.2 million favourable impact of a periodic review of its non-reinsurance recoveries on paid claims. This, however, was partially offset by an increase in delinquencies from Queensland and Western Australia, particularly in regions exposed to the slowdown in the resources sector, Genworth said.