Genworth reports rising deliquencies
Genworth released its 1Q17 results before the open this morning.
Gross Written Premium increased by 3.8 per cent year-on-year to $85 million, in part reflecting a higher LVR mix in the reported period.
However, statutory NPAT declined by 22.4 per cent to $52.2 million.
The loss ratio increased from 27 per cent to 34.8 per cent, partly due to an increase in the number of delinquent loans.
The portfolio delinquency rate increased to 0.48 per cent, up from 0.40 per cent in 1Q16.
There were significant year-on-year increases in the delinquency rates in Western Australia (25 basis points), South Australia (14 basis points), and Queensland (13 basis points).
Looking at delinquency rates by book year, while not high, it's notable that initial delinquency rates have been moving on to a steeper trajectory across recent book years.