The insurer financial strength ratings on Genworth Financial Mortgage Insurance Pty Ltd. (GFMI; AA/Stable/--) reflects the company's operational integration with its U.S.-based sister company, Genworth Mortgage Insurance Corp. (GMIC; AA/Stable/--), and ultimate ownership by Genworth Financial Inc. (Genworth; A/Stable/A-1). On a stand-alone basis, the rating on GFMI benefits from the company's leading market position, very strong capitalization, and solid earnings track record. Offsetting these factors is the concentrated suite of lenders' mortgage insurance (LMI) products that rely on the performance of the home loan market and the prevailing economic conditions. As GFMI and GMIC are core entities of Genworth, both are rated 'AA'. GFMI represents around 10% of the group's net income in 2006, and has a high level of
