S&P elevates QBE LMI's rating

QBE Lenders' Mortgage Insurance (LMI) has announced an upgrade in its rating from “A” to “A+” following adjustments in S&P Global Ratings' criteria for assessing insurers' risk-based capital.

The revised criteria have positively impacted the capital adequacy of QBE LMI, prompting S&P to raise its assessment of QBE LMI's financial risk profile from “strong” to “very strong.”

This development positions QBE LMI as the highest S&P-rated private LMI provider in Australia.

“An upgrade to an 'A+' rating from S&P Global Ratings underscores the strength of our risk management, capital, reinsurance structure, diverse customer partnerships, geographic coverage, and strong parent company. This recognition reaffirms our commitment [not only] to delivering exceptional value to our partners and stakeholders but also to maintaining our position as a market leading player in the LMI market in Australia,” said Patricia Priest, general manager of LMI at QBE Australia Pacific.

The ratings agency has affirmed a stable outlook, expressing confidence that the company “will maintain very strong capital and sound earnings.”

Factors that contributed to rating change

According to QBE LMI, the factors that contributed to the enhanced rating include:

• the effectiveness of its quota share reinsurance structure, bolstering its capacity and resilience
• the “A+” rating of its parent company, QBE Insurance Group
• its significant market share, coupled with a diverse customer base that includes major banks, regional lenders, international banks, and a leading share of customer-owned authorised deposit-taking institutions

In other news, the reinsurance division of QBE Insurance Group appointed a new vice president – specialty underwriter.