Bulletin: Genworth Australia's First-Half Results Indicate Stability; Downside Risks Remain

MELBOURNE (S&P Global Ratings) July 30, 2020--Genworth Financial Mortgage Insurance Pty Ltd.'s (Genworth Australia; A/Negative/--) first-half 2020 performance is in line with our expectations and indicates stability although downside risks remain, S&P Global Ratings said today. The headline loss of A$90 million was slightly better than we expected, following the A$182 million deferred acquisition cost write down in the first quarter of 2020 reflecting expected future claims. Written premiums displayed solid growth of 30% compared with the prior corresponding period, assisted by increased refinancing amidst the low-interest rate environment. While net claims were up, the increase on the prior corresponding period was largely attributable to a A$35 million increase in reserving to reflect repayment deferrals from lender customers. We expect

...July 30, 2020 MELBOURNE (S&P Global Ratings) July 30, 2020--Genworth Financial Mortgage Insurance Pty Ltd.'s (Genworth Australia; A/Negative/--) first-half 2020 performance is in line with our expectations and indicates stability although downside risks remain, S&P Global Ratings said today. The headline loss of A$90 million was slightly better than we expected, following the A$182 million deferred acquisition cost write down in the first quarter of 2020 reflecting expected future claims. Written premiums displayed solid growth of 30% compared with the prior corresponding period, assisted by increased refinancing amidst the low-interest rate environment. While net claims were up, the increase on the prior corresponding period was largely attributable to a A$35 million increase in reserving to reflect repayment deferrals from lender customers. We expect mortgage repayment deferral programs by lender banks to dampen claims experience. These measures were extended by a further four months...

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