Reports that a higher level of lenders’ insurance claims have been rejected were dismissed today by mortgage insurer Genworth Financial.
The Australian Financial Review today reported that mortgage insurers were rejecting a greater number of claims as a result of the market downturn.
The daily also reported that the insurer was currently in a “spat” with NAB over unpaid claims.
Peter Hall, country executive and director of Genworth Financial, told Mortgage Business that claims were currently performing as per expectations and he couldn’t see any reason why Genworth’s claims payment ratio would change this year.
“We are currently paying all claims in line with our master policy,” he said.
Mr Hall also played down the suggestion that there was a disagreement with NAB.
According to Mr Hall Genworth was currently “working closely with the bank towards a mutually agreed outcome” – comments that were supported by NAB.
A NAB spokesperson said the bank was in discussions with Genworth Financial over claims, and in order to be prudent the bank had taken a provision in the case that the claims payments weren’t made.
Mr Hall was also critical of The Australian Financial Review’s comments that the insurer wasn’t well capitalised.
Under APRA’s regulation, Genworth Financial must have $1.20 for every $1 of capital, he explained.
“Currently Genworth has $1.36 per $1 so we are in fact sitting on excess capital,” he said.
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