Investor Presentaiton
LENDERS MORTGAGE INSURANCE
SEPTEMBER FULL YEAR 2021 RESULTS
Gross Written Premium ($m)
Net Claims Paid ($m)
Loss Rate* (of Exposure - annualised)
LMI & REINSURANCE STRUCTURE
$124.0m
Australian Home Loan portfolio LMI and Reinsurance Structure at 30 Sep 21
(% New Business FUM Oct 20 to Sep 21)
$19.0m
-2.5bps
* Negative Loss Rate driven by the release of provisions recorded in 2020 as
coverage for anticipated future claims as a result of the COVID-19 situation
ANZLMI LOSS RATIOS REMAINED COMPARABLE TO PEERS¹
%
160
140
120
100
80
60
40
20
0
-20
80-90%
Non LMI
Insured
85
LMI
Insured
15
LVR
9
2021 Reinsurance Arrangement
LVR > 80%
Aggregate Stop Loss²
Arrangement on
Net Risk Retained (net of
Quota Share recoveries
LVR > 90%
90%+ LVR
6
Quota Share³
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 arrangement³ with reinsurers
for mortgages 90% LVR and above and in addition an Aggregate Stop
Loss arrangement² for policies over 80% LVR.
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Industry
― ANZ LMI
Insurer 1
Insurer 2
Insurer 3
1. Negative Loss ratios are the result of reductions in outstanding claims provisions. Source: APRA general insurance statistics (loss ratio net of reinsurance)
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
2.
3.
Quota Share arrangement - reinsurer assumes an agreed reinsured % whereby reinsurer shares all premiums and losses accordingly with ANZLMI
ANZ
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