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BRIEF-Genworth Mortgage Insurance Australia Updates On Premium Earnings Pattern and FY17 Guidance

Published 15/12/2017, 09:45 am
© Reuters.  BRIEF-Genworth Mortgage Insurance Australia Updates On Premium Earnings Pattern and FY17 Guidance

Dec 15 (Reuters) - Genworth Mortgage Insurance Australia Ltd GMA.AX :

* FINALISED ITS ANNUAL REVIEW OF PREMIUM EARNING PATTERN

* 2017 NET EARNED PREMIUM IS EXPECTED TO BE APPROXIMATELY 17 - 19 PER CENT LOWER THAN 2016

* CONTINUES TO TARGET ORDINARY DIVIDEND PAYOUT RATIO RANGE OF 50 TO 80 PERCENT OF UNDERLYING NPAT

* CHANGE TO PREMIUM EARNING PATTERN WILL NEGATIVELY IMPACT NET EARNED PREMIUM BY APPROXIMATELY $40 MILLION

* CHANGE TO LENGTHEN AVERAGE DURATION OF PERIOD OVER WHICH GENWORTH RECOGNISES ITS REVENUE BY ABOUT 12 MNTHS

* CO EXPECTS FY LOSS RATIO TO REMAIN BETWEEN 35 AND 40 PER CENT

* CHANGE TO ALSO INTRODUCE A THIRD SEPARATE EARNINGS CURVE FOR BUSINESS WRITTEN IN 2015 AND LATER

* CHANGE TO PREMIUM EARNING PATTERN EXPECTED TO HAVE MINIMAL IMPACT ON GENWORTH'S REGULATORY SOLVENCY RATIO

* MODIFIED PREMIUM EARNING PATTERN TO BE APPLIED TO REVENUE RECOGNITION IN INCOME STATEMENT FOR 4Q17 AND THEREON

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