The 'AA-' insurer financial strength and issuer credit ratings on Australian-based insurer Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia) reflect our opinion of the company's very strong capitalization, conservative financial structure, and market leadership position in the Australian lenders' mortgage insurance (LMI) industry. Offsetting rating factors include Genworth Australia's earnings vulnerability to changes in economic and property market conditions. In our opinion, Genworth Australia's very strong risk-based capitalization should enable the company to absorb a significant level of claims if Australia were to experience a severe economic downturn. Based on Standard&Poor's Australian LMI capital model, the company's capitalization was scored at the 'AA' category level at Dec. 31, 2013. Inputs to our capital model assessment included approximately
