ANZ 2022 Full Year Debt Investor Presentation slide image

ANZ 2022 Full Year Debt Investor Presentation

ANZ 2022 Full Year Debt Investor Presentation LENDERS MORTGAGE INSURANCE September Full Year 2022 results Gross Written Premium ($m) Net Claims Paid ($m) Loss Rate* (of Loan Exposure - annualised) $97.9m $5.6m 1.7bps *Negative Loss Rate driven by reductions in outstanding claims provisions ANZLMI claims loss ratios remained comparable to peers¹ 200% Industry ANZ LMI LMI 1 LMI 2 LMI 3 150% 100% 50% 0% -50% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 LMI & Reinsurance structure Australian Home Loan portfolio LMI and Reinsurance structure at 30 Sep 22 (% New Business FUM Oct 21 to Sep 22) 80%-90% LVR Aggregate Stop Loss² Arrangement on Net Risk Retained (LVR > 80%) Not LMI Insured 87% LMI Insured 13% 7% 6% > 90% LVR Quota Share3 Arrangement (LVR >90%) 2022 Reinsurance Arrangement ANZLMI uses a diversified panel of reinsurers (10+) comprising a mix of APRA authorised reinsurers and reinsurers with highly rated security Reinsurance is comprised of a Quota Share arrangement with reinsurers for mortgages 90% LVR and above and in addition an Aggregate Stop Loss arrangement for policies over 80% LVR 1 Source: APRA general insurance statistics (loss ratio net of reinsurance). 2. Aggregate Stop Loss arrangement-reinsurer indemnifies ANZLMI for an aggregate (or cumulative) amount of losses in excess of a specified aggregate amount. When the sum of the losses exceeds the pre-agreed amount, the reinsurer will be liable to pay the excess up to a pre-agreed upper limit. 3. Quota Share arrangement - reinsurer assumes an agreed reinsured % whereby reinsurer shares all premiums and losses accordingly with ANZLMI 96
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