Mortgage insurance reports higher delinquencies

Genworth Mortgage Insurance Canada has reported a slightly higher percentage of delinquencies, pushing its losses from mortgage insurance policies up to $31 million in the third quarter of 2015, up $1 million from the same quarter in 2014.

The loss ratio was 21 per cent for the quarter, compared to 17 per cent in the prior quarter and 21 per cent in the same quarter in 2014.

In volume terms, there were 1,715 outstanding delinquencies, an increase of 49 from the prior quarter, primarily reflecting seasonality.

New delinquencies, net of cures, were 440 in the quarter, representing an increase of 28 compared to the same quarter in the prior year and 121 compared to the prior quarter, including 32 in Alberta and 46 in Ontario. 

Genworth reported a 20 per cent growth in premiums for insured mortgages in its third-quarter results with the total value of premiums reaching $260 million, up 20 per cent year-over-year and 27 per cent from the previous quarter.

The firm said that better market penetration helped the increase, along with higher rates introduced in June 2015 and a greater volume of mortgage originations.  
 

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