Mortgage insurance
It was a big third quarter for Genworth Mortgage Insurance in Australia.
It's very disappointing to see that unemployment rates are now drifting higher in all mainland states ex-WA from a year earlier.
Full employment seems to be getting further away rather than closer as capacity in the labour force continues to expand.
Full employment seems to be getting further away rather than closer as capacity in the labour force continues to expand.
Despite this, delinquency rates were reasonably well contained at 0.60 per cent (up 5 basis points from a year earlier).
The delinquency rate in Western Australia was highest at 1.06 per cent, and there has also been some deterioration in New South Wales and Queensland.
New delinquencies are cures improved in the third quarter, partly reflective of seasonality as well as generally improving housing market conditions.
New insurance written soared 26.4 per cent year-on-year to $6.4 billion on the housing market recovery, while Gross Written Premium was up 24.4 per cent to the strongest level in four years as sentiment has rebounded.
Genworth (ASX: GMA) declared a special (unfranked) dividend of 24.2 cents per share.
The share price has accordingly rocketed higher, recording double digit gains at the intraday highs to nestle in above $4.
2020 may be a brighter year for Genworth revenues as more higher-LVR loans are written.
