Genworth Mortgage Insurance Australia has posted a statutory loss of $90 million for the six months to June 30, as it was hit by a write-down and an increase in reserves in anticipation of rising bad loans.
Mortgage insurer, Genworth Australia has reported a surprise loss for the three months to the end of March of $125.6 million which was driven by a need to build provisions for bad debts ahead of a likely jump in mortgage insurance claims.
2017 looks like being a horrible year for lenders mortgage insurer, Genworth Mortgage Insurance Australia (GMA). Not only is it facing a sharp slide in new business, premiums and revenues, but a near doubling in its loss ratio and a continuing slide in the number of lenders mortgage insurance contracts it writes falls.
UBS remains cautious about a gradual housing market correction but believes operating challenges that were posed by the decline in net earned premium have now played out and are widely appreciated. The broker now regards a Sell thesis as less compelling and upgrades to Neutral.
UPS re-visits assumptions after the September quarter update. The broker has supported the company’s proactive approach to returning capital but its Neutral rating continues to reflect the view that the stock is unlikely to outperform in a period of deteriorating delinquency trends.