“We are disappointed in the outcome given our longstanding relationship with NAB and would have welcomed the opportunity to continue the partnership.”
Those were the words of Genworth Mortgage Insurance Australia Limited chief executive and managing director Pauline Blight-Johnston when the lenders mortgage insurance (LMI) provider revealed that National Australia Bank (NAB) will not be renewing Genworth’s supply and service contract which is set to expire on November 20.
According to the May 20 update by Genworth, NAB’s decision comes following the request-for-proposal process initiated by the bank in February.
“We believe we presented a strong offer that reflected the risk of the portfolio while maintaining adequate returns on equity for our shareholders,” stated Blight-Johnston. “We will continue to work closely with NAB through to November to ensure we are supporting them and their borrowers and maintaining our service standards.”
The LMI business underwritten under the expiring NAB contract represented approximately 12% of Genworth’s gross written premium in the 2019 financial year.
