AAP Finance

Genworth loses NAB insurance contract

By AAP Newswire

Mortgage insurance provider Genworth will lose a National Australia Bank contract worth about 12 per cent of its gross written premium.

NAB has decided to use a single lenders mortgage insurance provider, QBE, for home lending and has told Genworth the current contract, which expires on November 20, will not be renewed.

Home buyers usually pay lenders mortgage insurance when taking a loan.

Genworth chief executive Pauline Blight-Johnston said she was disappointed by the outcome given the long relationship.

NAB in February called for proposals and later chose QBE.

A NAB spokesman said both providers had been great partners of the bank for many years.

Genworth in January renewed the contract of its largest customer, Commonwealth Bank, for three years.

Shares in Genworth were trading higher by more than 5.0 per cent to $2.13 at 1110 AEST.

The shares have sunk by more than 44.0 per cent since January 1 amid a wider market downturn.