The insurer financial strength rating on Australia-based insurer Genworth Financial Mortgage Insurance Pty Ltd. (GFMI; AA/Negative/--) reflects the company's operational integration with its U.S.-based sister company, Genworth Mortgage Insurance Corp. (GMIC; AA/Negative/--), 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 company's concentrated suite of lenders' mortgage insurance (LMI) products that rely on the performance of the home loan market and the prevailing economic conditions. The rating on GFMI's wholly owned 'runoff' subsidiary, Genworth Financial Mortgage Indemnity Ltd., is 'A-' with a stable outlook. As GFMI and GMIC are core entities of
