One LMI provider has recorded a substantial underwriting profit this year, while another was only just in the black.
APRA's report General Insurance Institution-Level Statistics, released yesterday, found QBE LMI recorded an underwriting profit of $114m in the last financial year, while Genworth’s was just $3m.
This was mostly due to high claims recorded by Genworth in the past year. The LMI provider collected $444m in premium income in 2013, but was faced with $261m in claims. It also had $100m in underwriting expenses.
QBE LMI collected $234m in premium income, but recorded just $61m in claims and underwriting expenses of $27m.
Genworth, however, received $257 in investment income, while QBE LMI received $142m, resulting in Genworth recording a slightly higher net profit for the financial year than QBE LMI ($172m compared to $154m).
The results come after it was revealed QBE will record a net loss of US$250m this year due to financial strife in its North American business.
