Genworth product diversification yields results
Genworth Mortgage Insurance Australia is confident it can maintain the growth in its gross written premium that it reported last year, after a couple of years of heavy falls before that.Over the past couple of years the company has moved to diversify its revenue streams by introducing a number of new products. They include a new risk management solution utilising a Bermudian insurance entity, a "micro markets LMI offering" and excess if loss insurance.The strategy is to position the company as a provider of "capital and risk management solutions in the Australian residential mortgage market."The strategy is designed to mitigate the effects of a slowing mortgage market and regulatory impacts, such as the reduction in high loan-to-valuation ratio lending. Genworth must also fend off the aggressive marketing of the recently licenced monoline insurer Arch LMI Pty Ltd.At yesterday's annual general meeting, Genworth chief executive Georgette Nicholas said the increase in gross written premium the company achieved last year was largely attributable to the new product offeringsGross written premium was up 25 per cent last year to $457 million. The increase came after two years of steep falls, and the 2018 figure did not match the $507 million of GWP the company reported in 2015.In the three months to March this year GWP was down on the previous corresponding period. Nicholas said that was because the March quarter last year included "a bespoke excess of loss transaction written via or Bermudian insurance entity."Excluding that transaction the GWP for the March quarter this year was up 8 per cent on the previous corresponding period.Genworth chair Ian McDonald said the company's solvency ratio was greater than the board's targeted range, and the board would be actively evaluating uses for its excess capital.