Australia’s largest mortgage insurer has lost its second biggest client, but said it won’t impact its full-year guidance.
Genworth Mortgage Insurance has revealed Macquarie Bank to be the mystery customer that will be ending its exclusive contract with the insurer.
The contract was due to expire in February 2017 and Genworth was given 30 days written notice of terminating the deal for the provision of lenders mortgage insurance, effective April 08, 2017.
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The current contract constitutes about 14% of the insurer’s gross written premium (GWP), but Genworth said this would not affect its full-year guidance of a 10-15% decline in GWP, Australian Financial Review said.
In a statement to the ASX, Genworth commented: “The company remains in discussions with this customer about managing default risk in the context of other insurance alternatives.”
Meanwhile, Genworth renewed its contract with its biggest client, the Commonwealth Bank of Australia, late last year, for another three years to December 31, 2019. This contract made up 47% of the insurer’s GWP in 2016.
Its contract with its third largest customer, on the other hand, will expire on November 20, 2017, the report said.