Moody's revised the outlook on the 'Aa3' insurance financial strength rating assigned to QBE Lenders Mortgage Insurance Limited to stable from negative and at the same time affirmed the rating. The change in outlook results from improvements in the company's operating environment and its financial profile, reflecting in turn improvements in demand for mortgage insurance, pricing structures, and profitability.QMI is one of the only two remaining independent LMIs besides captives like St. George. The GFC has demonstrated the value of lenders' mortgage insurance, and lenders' increased sensitivities to risk will continue to sustain demand for their products. However, given the uncertainty about the world economy, Moody's will continue to closely monitor developments in loan portfolio performance. Negative ratings pressure could emerge should there be a substantial increase in loan default rates or a correction in house prices.In a similar move, Moody's revised the outlook on the 'A1' IFR assigned to Genworth Financial Mortgage Insurance Pty Ltd to stable from negative and affirmed the rating. The change in outlook is based on improvements in the company's operating environment and its financial profile (including increased external reinsurance protections), reflecting in turn improvements in demand for mortgage insurance, and profitability.The continued strong profitability is due to a combination of company initiatives on pricing and underwriting; the restrained nature of the economic downturn in Australia; and the rapid recovery in the housing market. All the leading macro-economic indicators suggest that Australia's economic conditions will continue to improve and lenders have ample funding for housing loans. In addition, consumer and business confidence are at their highest levels since the global financial crisis.