ANZ 2022 Full Year Results
ANZ 2022 Full Year Results
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
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