I’m afraid the writing is on the wall now for the great Australian mortgage bubble. When nobody wants to be in the lenders mortgage insurance business you know something is up. After the recent float of Genworth’s (GMA) formerly stellar LMI business, QBE has announced a partial float of its own LMI:
QBE Insurance Group has announced plans to partially float its mortgage insurance business in 2015, even as it posted an 18 per cent drop in profits to $US392 million for the half year to June.
The insurer said its lenders mortgage insurance business, QBE LMI, which held around $1.2 billion in net tangible assets at the end of June.