A Sydney-based insurance giant has reported a strong rise in revenue for the third quarter, as well as a renewed partnership with its biggest customer.
Genworth Mortgage Insurance Australia posted a nearly 30% surge in its third quarter underlying net profit to A$26.5 million for the three months ended Sept. 30, compared with $20.4 million in the previous year. The Sydney-based company’s gross written premium meanwhile rose 24.4% in the quarter due to growth in its traditional mortgage insurance.
“Overall Q3 performance was solid, with the market stabilising and in the major markets of Sydney and Melbourne, home prices improved during the quarter,” said CEO Georgette Nicholas in The Sydney Morning Herald. “Alongside recent interest rate cuts, the overall economic conditions are encouraging first home buyers back into the market, and as a result our new insurance written was up 26.4% to $6.4 billion in the third quarter.”
Genworth also announced that it renewed its three-year contract with the Commonwealth Bank to provide mortgage insurance services until the end of 2022, noting that the contract accounted for 53% of its gross written premium in the first of this year, SMH and Reuters said.
