QBE Lenders' Mortgage Insurance shows promising stance in Australia market – S&P Global Ratings

QBELMI is expected to maintain its prominent position in the lenders' mortgage insurance market in Australia

S&P Global Ratings’s outlook for QBE Lenders' Mortgage Insurance (QBLMI) and QBE Mortgage Insurance (Asia) is stable. The improvement in capital adequacy is attributed to a recalibration of mortgage insurance premiums and reserve risk charges under the new capital model criteria. 

The stable outlook is based on QBELMI's strong competitive position, substantial market share, solid earnings, and very strong capital adequacy, expected to be maintained.

QBELMI is expected to maintain its prominent position in the lenders' mortgage insurance market in Australia, supported by strong market share and customer diversity.

Very strong capital and sound earnings are highlighted as key strengths, with an expectation of a robust capital position over the forecast period. 

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QBELMI's reliance on a single line of business—lenders' mortgage insurance—is acknowledged, posing susceptibility to economic, regulatory, and market conditions affecting the residential property sector.

The assessment includes the expectation of extraordinary support from parent QBE, considering QBELMI as core to the QBE Lenders' Mortgage subgroup. 

The strategic importance of the subgroup to QBE further strengthens the support assumption. The higher anchor reflects QBELMI's strong competitive position, substantial market share, leading operating performance, and very strong capital position.