NAB will end its relationship with Genworth when their current contract expires in November, leaving a big hole in the mortgage insurer’s earnings.

NAB will contract exclusively with QBE for lenders mortgage insurance. A bank spokesperson said the decision to work with one LMI provider was part of the bank’s mortgage business simplification process.

The LMI business Genworth wrote under the NAB contract was worth 12 per cent of its gross written premium last year.

Among the big four banks, Genworth retains its relationship with Commonwealth Bank. The contract, which is worth more than 50 per cent of Genworth’s GWP, was renewed last October and runs for three years.

Westpac stopped doing business with Genworth in 2015.

Genworth says it has relationships with 100 Australian lenders and remains the country’s leading provider of LMI.

The company’s gross written premium last year was A$433.2 million – an increase of 5.9 per cent over the previous year.

It made a net profit of $120.1 million, compared with $75.7 million in 2018. On an underlying basis, after excluding mark-to-market performance of the investment portfolio, profit was up 3.3 per cent from $93.9 million in 2018 to $97 million last year.

After conducting a liability asset test in the March quarter, Genworth took a $181.8 million write-down to allow for likely COVID-19 related future claims.