Genworth Financial Mortgage Insurance Pty Ltd.

The stable outlook on Genworth Australia reflects our view that it will maintain its strong competitive position as the largest provider of LMI in Australia, as well as strong capital adequacy for at least the next two years. We could raise the ratings on Genworth Australia over the next two years if our prospective view of its capital adequacy sustainably improved to the 'AA' category, according to our capital model. Although unlikely, we could lower the ratings on Genworth Australia over the next two years if there is: A deterioration in its competitive position, resulting in a material weakening in its market share; A material decline in its operating performance; or A weakening in its prospective capital position to below

...Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia) will maintain its market leadership in the Australian lenders' mortgage insurance (LMI) sector for the next three years. The company's contracted customer base, digital investments, and strategic initiatives should help maintain its dominant market position. The insurer is the largest provider of LMI in Australia, with a market share of about 40% by gross premiums written as of Dec. 31, 2021. The contract renewals of several lending partners over the past 12 months, including its largest customer, mean that Genworth Australia will likely maintain this position for at least the next three years. Our strong competitive position assessment recognizes there is some concentration in its customer base, however, with its largest customer accounting for over half of the insurer's premiums. As a monoline insurer, Genworth Australia also has limited product diversity. We expect Genworth Australia to retain its solid capital adequacy....

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