Genworth loses Westpac's business

John Kavanagh
Mortgage insurer Genworth Australia announced yesterday that Westpac had given notice that it was terminating its agreement with Genworth for the provision of lenders mortgage insurance.

The business written under the agreement represented 9.5 per cent of Genworth's new insurance written in 2014 (the sum of residential mortgage loans insured in a given period) and 14 per cent of its gross written premium (the premium income received).

Genworth said the full effect of the decision would be felt in the 2016 financial year.

According to the statement, Westpac's decision followed a strategic review of its LMI arrangements.