NAB contract flaky for Genworth 20 February 2015 4:45PM Ian Rogers The National Australia Bank's contract with Genworth Australia to provide lenders mortgage insurance for the bank's Homeside Lending division is up for review in September 2015. However, the option of following Westpac's lead and moving all or part of its business away from Genworth must now have moved higher up NAB's list. For starters, cost-conscious NAB has a clear business incentive, if Westpac's appraisal of LMI cost and risk options has any merit. And, like Westpac, NAB can shift its business away from Genworth on 90 days' notice, according to Genworth's IPO prospectus. (Some of the banks' own customers may find their home loans are harder to break than this.)NAB will therefore be working through its mortgage insurance options - with the added risk that, unlike Westpac, Genworth Australia is NAB's sole LMI supplier, and NAB is now the monoline mortgage insurer's second largest customer, accounting for ten per cent of its new insurance written and 11 per cent of gross written premiums, respectively, in FY 13.As a final push - if NAB needed any further nudging - Genworth Financial in the US (the majority shareholder of Genworth Australia) was dealt twin credit rating downgrades by S&P and Moody's either side of the new year, respectively.