Genworth Mortgage Insurance (GMA) $2.14

GMA -15.75%: the mortgage insurer tumbled to a 6 month low today. More than 50% of the company’s gross written premium (GWP) comes from an exclusive deal into CBA’s loan book which has been in place since 2006. The deal is set to expire in December next year, however CBA has formally requested that GMA  make a pitch to extend the arrangement. The market is concerned now that a large chunk of GMA’s earnings is under threat with the deal unlikely to continue in its current form. While times are pretty rosy for mortgages (and their insurers) Genworth could face headwinds with competitive tender process likely to have a negative impact on the current arrangement.

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Genworth (GMA)

LAST UPDATED 29/06/2021 16:51

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Genworth (GMA)

LAST UPDATED 29/06/2021 16:51