Leading market position and franchise in Australia Strong capitalization Solid earnings performance Concentration in business lines Business growth is dependent on prevailing economic conditions Reduced financial flexibility The 'AA-' insurer financial strength rating on Australia-based insurer Genworth Financial Mortgage Insurance Pty Ltd. (GFMI) reflects our opinion of the company's leading market position, very strong capitalization, and solid earnings track record. Offsetting these factors are the company's concentrated suite of lenders' mortgage insurance (LMI) products, which rely on home-loan market performance and prevailing economic conditions, and GFMI's reduced financial flexibility related to U.S.-based Genworth Group's deterioration in creditworthiness during the recent global financial crisis. The rating on GFMI's wholly owned "runoff" subsidiary Genworth Financial Mortgage Indemnity Ltd. is 'A-' with a
